From February 27, the new median wage of NZ$29.66 was adopted into the Immigration New Zealand system, with many hospitality and tourism roles provided a temporary exception agreement to the median wage threshold.
This agreement means many hospitality and tourism operators like the Seasonal Snow and Adventure tourism sector’s median wage rose from $25.00 to $26.60 (90 per cent of the median wage) and will increase to $28.18 (95 per cent of the median wage) February 2024, followed by the 100 per cent median wage increase in 2025 to the full $29.66.
While there is agreement the wage increase is needed in the recovery of the tourism sector, for some tourism operators it has created frustration for what they believe to be inadequate notice from the government.
Haka Tours general manager Eve Lawrence says there has been little consideration given to businesses who have already finished their financial budgeting and that has a massive effect.
“For us, it means roughly $4-5,000 a month of top of payroll because our financial budgeting was done in September.”
She says there needed to be more time given in order to accommodate the end of the financial year and a better option would have been making the announcement then implementing for later in the year.
“It’s an afterthought, and in my view a way to recoup some money back from the losses the government has incurred from COVID-19 and all the money they’ve given out to businesses.
“I think it sends a clear message from the government that they really don’t understand. Although its only had a small impact on our business, compared to maybe hospitality or the horticulture sector who are employing up to 200 people.”
Ministry of Business, Innovation & Employment general manager A. McLeish Martin says businesses were given enough notice. Statistics New Zealand published the median wage in August 2022 and a media release was issued by Immigration Minister Michael Wood, October 9, followed by a news item on the Immigration New Zealand website, October 10.
Immigration New Zealand says they also sent emails to their employer, migrant community and Licensed Immigration Adviser databases about the median wage increase October 11, 2022, just after 9.00am
“From that date onwards, Immigration New Zealand also included footnotes about the increase where the median wage was referenced, on pages on its website.” says Minister Wood.
However, he says previously wage thresholds were updated regularly, but not always at the same time each year and following on from February this year, there will be a standard process where the median wage is adopted in immigration instructions each February.
“We will continue to email employers who opt-in to receive emails from Immigration New Zealand. In the future we will also email all Accredited Employers as we did this February.” says Minister Wood.
This timing means people will have plenty of advanced notice of the changes and the median wage calculator tool will also be updated well in advance.
