2015-Dec 04: Market Rates

Visa Pak 239 - Information about current Market Rates and advice to staff when assessing Work and Resident application.

Visa Paks

4 December 2015

This item replaces the advice provided in Visa Pak 233 [16 October 2015].

Immigration New Zealand has recently received feedback from Careers New Zealand (CNZ) that the pay rates from their website are being quoted in letters to employers and work visa applicants, with CNZ cited as the source of information. The CNZ website has the following disclaimer which should be observed when using the information provided there (my italics):

  • The Careers New Zealand website is designed to help you make better informed work, training and career decisions. However, we recommend that you also refer to other sources of information, such as relevant training providers or professional or trade organisations before making any decisions about your career.
  • You may reproduce this material in any format or media solely for your personal use.
  • Pay information is provided as a guide only. People's individual pay rates may vary according to their skills, experience and qualifications and their employer.

A recent survey of offices showed that almost all offices used the CNZ and other employment websites but commented that not all of these could not be completely relied on to provide realistic market rates as some rates quoted were below the minimum wage whereas others seemed to provide inflated pay scales to attract job seekers. The wages or salary offered are also impacted by factors such as size of enterprise, qualifications and experience of applicant and proposed area of employment.

MBIE produces the MBIE Occupation Outlook, an annual report on career choices, which includes expected salary ranges; see https://occupationoutlook.mbie.govt.nz/. Other sources used by INZ offices included the following:

A key issue in assessing an application is that officers may use information from publicly available websites and reports to guide them but they make the final decision as to whether the wages or salary provided with an application for a work or residence visa is appropriate for the job offer.  Officers should consult more than one website (source) in order to form an opinion as to whether a job offer meets market rates and then provide the customer with all, or a sample of, the different sources used to reach their conclusion.

Please note that this advice differs from the previous advice, in which officers were advised not to provide details of which websites had been consulted; this was in order to deter employers and advisers from contacting Careers New Zealand directly complaining about the pay rates quoted on their website. However, it has been noted that in fairness to applicants, they have the right to know the source of information on which a PPI letter or decline is based. 

Action
Please discuss with your team(s) and ensure that:

  • Officers assessing work and resident visa applications are aware of all the sources of information on wages and salaries.
  • Officers come to their own conclusions as to whether pay rates are appropriate and provide the applicant or their adviser with all, or a sample of, the different sources used to reach their conclusion.