Immigration New Zealand (INZ) has introduced two new residence pathways under the Skilled Migrant Category (SMC), creating new opportunities for experienced workers and skilled tradespeople to gain residence in New Zealand.

For employers relying on migrant workers, these changes are significant. They expand residence options for employees who may not hold university qualifications but have developed valuable skills through years of practical experience.

Just as importantly, the new pathways mean employers may need to think about residence planning much earlier in the employment relationship, particularly where they want to retain skilled migrant workers beyond the maximum Accredited Employer Work Visa (AEWV) period.

Background

Until now, the Skilled Migrant Category Resident Visa has primarily operated through a points based system.

Migrants could obtain the required six points through:

• • Qualifications, such as:
    
    • • Four points for a Bachelor degree
    • • Five points for a Masters degree
    • • Six points for a PhD

• • Occupational registration, such as accountants, lawyers, engineers, and other regulated professionals

• • High income levels

• • New Zealand skilled work experience in limited circumstances

While the points system works well for highly qualified professionals, it has left many skilled workers without a realistic pathway to residence.

In particular, workers who gained expertise through practical experience rather than formal qualifications have often struggled to qualify. The income thresholds required to claim points from earnings are also high, requiring remuneration of between 1.5 and 3 times the SMC income threshold.

Recognising this gap, INZ has introduced two new Skilled Migrant Category pathways:

1. • Skilled Work Experience Pathway

• • Trades and Technician Pathway

Although the requirements appear complicated at first glance, the underlying objective is straightforward: creating residence pathways for workers whose skills have been developed through experience and practical training rather than advanced academic qualifications.

Skilled Work Experience Pathway

The Skilled Work Experience Pathway provides a residence option for migrants who have demonstrated skill and experience in their occupation over time.

To qualify, applicants must:

• • Hold an offer of employment for a role classified at ANZSCO Skill Level 1, 2 or 3.

• • Be paid at least 1.1 times the Skilled Migrant Category wage threshold.

• • Have at least three years of relevant work experience within the previous ten years in a Skill Level 1 to 3 occupation.

• • Complete an additional two years of skilled work experience in New Zealand in a Skill Level 1 to 3 role, paid at least 1.1 times the SMC wage threshold.

A key point is that migrants only begin accruing qualifying New Zealand work experience once they meet the pathway requirements. The required two years must also be accumulated within the four years immediately before the residence application is submitted.

Employers should also note that:

• • Self employment cannot be counted toward the work experience requirements.

• • Certain occupations are excluded under the Red List.

• • Occupations on the Amber List may be subject to additional requirements.

Trades and Technician Pathway

The Trades and Technician Pathway is designed for skilled tradespeople and technicians whose qualifications and experience have traditionally not fit neatly within the points based Skilled Migrant Category.

To be eligible, a migrant must:

• • Hold full time employment with an accredited employer.

• • Work in an occupation listed as eligible under the pathway.

• • Be paid at least the Skilled Migrant Category wage threshold.

• • Hold a qualification at NZQF Level 4 or higher, or an equivalent qualification.

• • Have at least 2.5 years of post qualification experience in a Skill Level 1 to 3 occupation.

• • Complete an additional 1.5 years of skilled post qualification work experience in New Zealand.

This means migrants will generally need a total of four years of qualifying post qualification experience, with part of that experience being gained in New Zealand.

The pathway is likely to be particularly relevant for industries experiencing ongoing skills shortages, including construction, engineering, manufacturing, and other trades-based sectors.

Why these changes matter for employers 

Many employers will initially view these changes as simply creating another residence option for migrant workers. However, the practical implications are much broader.

Residence planning needs to start earlier

Because both pathways rely heavily on qualifying work experience, employers and migrant workers need to consider residence eligibility from the start of the employment relationship rather than several years later.

Factors such as remuneration, job duties, and occupational classification may determine whether an employee can ultimately qualify for residence.

Pay rates matter

The new pathways are linked to the Skilled Migrant Category wage threshold.

If an employee’s remuneration falls below the required threshold, they may not be able to accrue qualifying work experience toward residence.

This means remuneration decisions made today could affect a worker’s residence eligibility years into the future.

Key takeaways for employers

The new Skilled Migrant Category pathways open residence opportunities for experienced workers and skilled tradespeople who previously struggled to qualify under the points based system.

For employers, the changes create both opportunities and risks:

• • Residence pathways may improve retention of valuable migrant workers.

• • Pay rates and job design require greater long term planning.

• • Restructures may have significant immigration consequences.

• • Early immigration advice is likely to become increasingly important.

For businesses employing migrants on AEWVs, these pathways reinforce the importance of viewing immigration strategy and workforce planning as part of the same conversation. Employers who understand the residence requirements from day one will be in a much stronger position to retain skilled staff and avoid unintended immigration consequences later.

Need advice? 

If you would like assistance or advice on immigration, please get in touch with our team. Email admin@cmalaw.co.nz or phone 03 211 0153.

Disclaimer: This update provides commentary on immigration, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace.