Did you know that any employer who wishes to nominate workers for subclass 482, 186 and 187 must meet certain salary and employment condition requirements? These requirements will help to ensure that:
- overseas workers are paid no less than an Australian worker would doing the same work in the same location, that is, the ‘annual market salary rate (AMSR)’
- these visa programs are not used to undercut the Australian labour market
And, if the overseas worker will be paid an annual salary less than AUD250,000 you need to show:
- you have determined the AMSR correctly
- the overseas worker will not be paid less than the AMSR, that is, less than an Australian worker would be paid
- both the AMSR and what the overseas worker will be paid, excluding any non-monetary benefits in both cases, is no less than the Temporary Skilled Migration Income Threshold (TSMIT).
Temporary Skilled Migration Income Threshold
In Australia, the Temporary Skilled Migration Income Threshold (TSMIT) is currently AUD53,900. Both the AMSR for the nominated occupation and the guaranteed annual earnings you will pay to the worker must be at least as much as the current TSMIT. The TSMIT does not include non-monetary benefits such as accommodation or a car. Such benefits must be paid in addition to the TSMIT.
Annual market salary rate
The Annual market salary rate (AMSR) is determined by looking at what you would pay equivalent Australian workers, enterprise agreements or industrial awards, job outlook information, advertisements for the last 6 months in the same location, remuneration survey or advice from unions or employer associations.
Determining the AMSR
If there is an equivalent Australian worker then…
The AMSR is what you are paying this worker. If the worker’s salary is based on an enterprise agreement or industrial award, you provide:
- the name of the agreement or award as recorded by the Fair Work Commission, where applicable
- the salary level or occupation group that applies to the nomination
However, if there is no relevant agreement or award, or you are paying your Australian employees above the award rate, you must provide copies of relevant employment contracts and pay slips for this employee.
Some important facts that you should know:
- An Australian worker who is more or less experienced than the nominee and does similar work at a different pay grade is not considered equivalent to the nominee.
- If the nominated overseas worker will be paid less than the equivalent Australian worker, the Department will refuse the nomination.
- If you provide only generic market salary data or salary surveys, the Department will refuse the nomination.
If there is no equivalent worker but there is an enterprise agreement or industrial award then…
You must provide:
- the name of the agreement or award as recorded by the Fair Work Commission, where applicable
- the salary level or occupation group that applies to the nomination
Or if there is no equivalent worker, agreement or award then…
You must determine and then show us what the AMSR is. You must also be able to explain how you used relevant information to determine what the equivalent worker will be paid. The type of relevant information could include at least two of the following:
- Job Outlook information
- advertisements from the last six months for equivalent positions in the same location (e.g. state, urban vs regional area)
- remuneration surveys completed by a reputable organisation
- written advice from unions or employer associations
But please note:
- You must provide sufficient evidence. As a general rule if you do not provide at least 2 independent sources of information in determining the AMSR the Department is likely to consider the requirement not met
- If you provide vague, unlabelled salary surveys and do not explain how you have determined the AMSR, the Department might refuse your nomination application.
- If the market salary rate determined is a ‘range’, explain and provide specific details regarding why you selected that AMSR.
Our Registered Migration Agents at Migration Centre of Australia have been in the migration industry for many years and have helped thousands of clients onshore and offshore. We are trained professionals in Australian Migration Law and we are trusted providers in the industry for our services. If you want to know more about the salary requirements for skilled employees, the process of nominating a skilled worker, or your rights and responsibilities as a skilled worker in Australia, whether you are on a subclass 482, 186 or 197 visa, contact us today on (02) 4626 1002 or send us an email at info@migrationcentreofaustralia.com.au and one of my registered migration agents will be ready to help you.
