New Zealand Loosens Residency Rules as Record Outflow Sparks Reform

First, list of detected resources in order of appearance:
1. Accredited Employer Work Visa (AEWV) — “Accredited Employer Work Visa”
2. Skilled Migrant Category Resident Visa (SMC) — “Skilled Migrant Category Resident Visa”
3. Skilled Migrant Category Resident Visa page — same exact name “Skilled Migrant Category Resident Visa page” (treated as same resource name occurrence)

Now the article with government links added (only first mentions of each resource linked, max 5 links). I added .gov links matching the exact resource names where they first appear in the article body. No other changes were made.

(New Zealand) New Zealand will loosen residency restrictions through phased immigration reforms in 2025 and 2026 as the country confronts a record outflow of citizens and deep labor shortages across key sectors. Officials say the package removes wage thresholds for many work visa roles, eases experience rules for lower-skilled workers, lengthens some visa durations, and creates two new work-to-residence routes designed to keep tradespeople and experienced workers who already contribute to local businesses. The government argues the changes will help employers retain staff when many New Zealanders are moving overseas and firms struggle to fill shifts.

The scale of departures has sharpened the policy push. In the year ending June 2025, an estimated 71,800 New Zealand citizens emigrated, up from 67,500 the year before, continuing a high outflow. Separate figures cited for 2024 point to 128,750 departures, described as the highest in decades and linked to a net migration loss.

With more locals leaving, employers have told ministers that hardworking migrants are holding teams together yet face slow or narrow residence options. The new settings aim to fix that gap without throwing open every door.

Policy changes: staged rollout (2025–2026)

From January 2025, officials begin rolling out immigration reforms in stages. Several headline shifts arrive by March 2025 under the Accredited Employer Work Visa (AEWV) framework, which governs most employer-sponsored hiring:

• Removal of wage thresholds for AEWV roles (from March 2025), reducing barriers that kept otherwise suitable candidates out of roles.
• Reduced experience requirements for lower-skilled migrants, recognizing that proven performance in New Zealand can matter as much as long overseas resumes.
• Longer visa durations for Level 4–5 roles, extended from 2 to 3 years, giving workers and employers more certainty.
• A declaration-based labor market test, which streamlines checks and reduces paperwork while keeping core integrity controls.
• Expanded interim work rights for AEWV applicants, limiting job gaps while applications are processed.
• New seasonal worker visa pathways from November 2025, aimed at sectors with predictable, time-bound labor spikes.

Employers hiring on the AEWV should ensure their accreditation remains current and role descriptions are updated to reflect the new settings. Readers can review official guidance for the Accredited Employer Work Visa on the Immigration New Zealand site at the following page: Accredited Employer Work Visa. This government link provides authoritative detail on eligibility, employer obligations, and application steps.

New work-to-residence pathways (mid-2026)

From mid-2026, New Zealand will add two new work-to-residence pathways focused on real-world experience and trades qualifications:

• Skilled Work Experience Pathway
  • Requires at least 5 years of relevant experience, including 2 years in New Zealand.
  • Pay requirement: at least 1.1 times the median wage.
• Trades and Technician Pathway
  • Requires Level 4+ qualifications.
  • 4 years of post-qualification experience, including 18 months in New Zealand.
  • Pay requirement: at or above the median wage.

Officials say these routes are built around the skills New Zealand businesses cannot easily find, especially in construction, engineering, manufacturing, and essential services. The focus on proven work in New Zealand is meant to reward those who have already put down roots, pay taxes, and support local teams.

Changes to the Skilled Migrant Category (SMC) — August 2026

By August 2026, the Skilled Migrant Category Resident Visa (SMC) will also change. The government plans to:

• Introduce the two new residence pathways into the SMC system.
• Cut required local work experience from 3 years to 2 years.
• Remove the rule to earn above the median wage during work experience, instead requiring workers to be on at least the median wage.
• Increase points for New Zealand university qualifications, encouraging graduates to stay and build careers locally.

The SMC is the main residence route for many professionals. Applicants and employers should expect detailed policy updates closer to implementation. For current reference, see the official Skilled Migrant Category Resident Visa page: Skilled Migrant Category Resident Visa.

Impact on applicants and employers

For workers, the removal of wage thresholds within the AEWV from March 2025 is a major shift. In practice, it should widen entry to roles where pay levels differ across regions or industries but the work is still essential.

Combined with longer visa durations for Level 4–5 positions, lower-skilled workers will have a clearer path to stay and contribute, while employers gain stability to plan rosters and training.

Key benchmarks for new residence pathways

• Skilled Work Experience Pathway
  • Document at least 5 years’ relevant experience, including 2 years in New Zealand.
  • Be paid at 1.1x the median wage.
• Trades and Technician Pathway
  • Hold a Level 4+ qualification.
  • Show 4 years’ post-qualification experience with 18 months in New Zealand.
  • Be paid at or above the median wage.

Because these pathways hinge on time worked in New Zealand and qualification levels, applicants should keep careful records: employment agreements, payslips, job descriptions, and proof of qualifications. Employers can support staff by issuing clear letters that map job duties to qualification levels and confirm pay rates above required marks.

Small businesses—often hit hardest by turnover—may find these routes helpful for retaining steady performers who understand local clients, sites, and safety rules.

According to analysis by VisaVerge.com, policies that align residence with proven, onshore experience tend to raise retention, because they reward workers who are already invested in their communities and workplaces. That approach can also cut churn costs for employers, especially in trades where new hires need months of supervised training.

Politics, capacity concerns, and stakeholder responses

The reforms arrive alongside debate inside the governing coalition. NZ First leader Winston Peters has formally invoked an “agree to disagree” clause with coalition partner National, highlighting worries about migration levels and housing capacity.

The government says the changes are targeted, with an emphasis on skills New Zealand needs and pay floors tied to the median wage to protect local standards. Economic Growth Minister Nicola Willis and Immigration Minister Erica Stanford have framed the reforms as a fix to a system that made it too hard for skilled migrants to gain residence even when their employers needed them.

Ministers say the package balances workforce needs with responsible settings, and that staged rollouts in 2025 and 2026 will allow agencies and employers to adapt.

Timeline implications

• Early 2025: AEWV adjustments are felt first—particularly the removal of wage thresholds, the declaration-based labor market test, and expanded interim work rights.
• Mid-2026: New residence pathways become the focus for migrants planning a longer stay.
• August 2026: SMC changes take effect, altering experience and points requirements.

That split allows workers to enter or extend now while mapping a clear route to residence later.

Concerns and safeguards

Unions and community advocates will watch how the removal of wage thresholds interacts with market pay. While the policy drops a barrier, pay protections still feature in the new residence tracks through median wage references, which are meant to discourage undercutting while keeping residence attainable for strong performers.

For international students, the plan to increase SMC points for New Zealand university qualifications by August 2026 may influence study choices and post-study work plans. Graduates who build two years of local experience at or above the median wage could see a faster route to residence.

For sectors that depend on seasonal peaks—such as horticulture, tourism, and food processing—the November 2025 seasonal worker visa pathways could reduce bottlenecks. By defining predictable routes ahead of each harvest or high season, employers can plan shifts earlier and invest in repeat workers who understand local safety and quality standards.

For families, clearer pathways can reduce stress. When a parent’s visa is longer, or a residence route is visible, it becomes easier to plan school terms, rental leases, and savings. The reforms’ emphasis on onshore experience rewards stability, which many families have already built.

Practical preparation checklist

Employers should prepare by:

1. Reviewing accreditation status and role descriptions ahead of March 2025 changes.
2. Auditing pay rates to meet median wage or 1.1x median wage where required.
3. Setting up document checklists so workers can track experience, qualifications, and duties aligned with the new pathways.
4. Planning for seasonal visa options from November 2025 if peak labor is critical.

Prospective applicants should:

• Keep organized records of work hours, payslips, and contracts.
• Confirm qualification levels (especially for Level 4+ trades) and obtain certified copies.
• Track onshore experience to meet the 2-year or 18-month requirements by mid-2026.
• Check AEWV conditions and rights before changing employers or roles.

What to watch next

The coming years will test whether these immigration reforms can steady the workforce while many citizens continue to leave. If departures stay high, the success of the policy will hinge on whether employers can convert well-performing temporary staff into permanent team members through the 2026 residence pathways. If outflows slow, the same pathways could anchor needed skills and keep training investments onshore.

Immigration New Zealand is expected to release further operational notes before each phase. Applicants and employers should refer to the official pages for updates, including the Accredited Employer Work Visa and Skilled Migrant Category Resident Visa guidance linked above, and check timelines carefully to avoid gaps in status.

While the reforms reduce red tape in several places, workers must still meet pay, experience, and qualification rules to move from short-term visas to residence.

As the window opens in 2025 and 2026, the message is clear: New Zealand is relaxing certain residency restrictions to hold on to people who are already adding value. For many migrants and their employers, that change could turn a good job into a long-term plan—one that helps steady businesses and communities at a time when the country needs both.