2016-Aug 19: Market rates

Visa Pak 273 - Clarification for staff about the requirement of pay rate meeting the market rate.

Visa Paks

19 August 2016

This item provides further advice regarding market rates, previously covered in advice to staff dated 4 December 2015.

Job offers must specify a rate of pay not less than the market rate for New Zealand workers in that occupation. Employment of migrant workers should not undermine the wages and conditions of New Zealand workers, displace New Zealanders from employment opportunities or hinder improvements to wages or working conditions.

Immigration officers need to be aware of a range of sources containing salary information, and should come to their own conclusions as to whether a pay rate provided is appropriate, taking into account all information that is available. Allowing employers to recruit from offshore with pay rates below the market rate can have the effect of driving down the rates offered to New Zealand workers and affect genuine attempts to recruit New Zealanders.

There is no set formula on how to calculate a market rate. However, this calculation must be based on a normal full-time employment– if an applicant’s weekly pay rate is only in line with the market rate due to working a 50 hour week in an industry where 40 hours per week is the norm, this is not acceptable. Previous work experience should also be taken into account, especially work experience in comparable labour markets (see SM11.10.1 for the definition of Comparable Labour Market). The rate offered must be compared with the correct occupation group i.e. ‘construction labourers’ may not be the most appropriate occupation group to compare the market rate for a Welder.

The list below provides examples of resources available. Others are available by searching online. You will need to take into account that some of these sources rely on individuals entering their own pay rates; some may be out of date with increases to minimum wage, some are based on recruitment agency figures only, and some are based on advertising. A range of sources should be consulted in order to gain a comprehensive and balanced analysis of an acceptable market rate for a particular occupation.

MBIE Occupation Outlook

Kelly Services Salary Guide

ENZ

Frontline Retail Salary Guide

PayScale

Frontline Hospitality Salary Guide

Live Salary