Immigration update: New opportunities for skilled workers

At McMillan&Co, we see a number of clients who are in New Zealand on an accredited employer work (AEW) visa, are great workers, and are highly valued by their employer, and who love New Zealand and want to stay here, but still can’t find a suitable pathway to residency!

Most AEW visa holders will apply under the points-tested Skilled Migrant Category (SMC) visa pathway to gain New Zealand residence.

However, for various reasons, some prospective applicants struggle to meet the eligibility requirements for the SMC visa. This could be because despite their excellent skills and experience, they don’t have the necessary tertiary qualifications, or they don’t quite earn 1.5 times the median wage (currently $50.34 per hour). A lot of workers fall into this “residency gap”, which means that after 5 years on an AEW visa, the worker (and their family members) will have to return home.

However, recent updates from the Government indicate that there will soon be more options for those workers currently unable to close the gap between work and residency.

The Government has announced, that from August 2026, two new residency pathways will be introduced under the SMC pathway:
 

1. Skilled Work Experience Pathway: For migrants in skilled roles (ANZSCO skill level 1 -3) with at least 5 years of relevant skilled work experience, including 2 years in New Zealand earning at least 1.1 times the median wage.

2. Trades and Technical Pathway: For migrants with a relevant Level 4 or higher qualification and 4 years of post-qualification skilled work experience, including 18 months in New Zealand earning at or above the median wage.

The Government estimates that 3,500–9,000 skilled migrants could benefit from these new pathways in the first year.

 
Other SMC changes will include increased points for New Zealand university-level qualifications, making it faster for international graduates to gain residency. For example, a New Zealand Bachelor’s degree holder will only need 1 year of skilled work experience, down from the current 3 years required.

These changes will help employers retain experienced workers, particularly in high-demand sectors like manufacturing and construction. For workers, the reforms offer greater accessibility, particularly in industries where practical skills and sub-degree qualifications are widely used and valued.

We expect that these changes will be welcomed by visa-holders and employers alike. If you have fallen into the “residency gap” and would like to assess your options, our immigration lawyers are here to help you understand the possibilities and plan your future accordingly.

Get in touch today to discuss your situation and take the next step in securing your New Zealand residency.

Sarah Caulton, Senior Associate
sarah@mcmillanco.nz