New Zealand reshapes residence rules to retain skilled workers as citizens leave

Two new routes to residence amid a growing exodus

New Zealand plans to open two new skilled residence pathways from mid 2026 as employers struggle to retain experienced workers and more citizens leave than return. Between July 2024 and July 2025, 73,400 New Zealand citizens departed and 25,800 returned, according to Stats NZ. Those figures represent a net loss of 47,600 citizens, with departures almost three times the number of returns.

The government is restructuring the Skilled Migrant Category Resident Visa to give experienced migrants and qualified trades and technical workers clearer routes to residence. Businesses say existing rules have been too rigid for practical workers who have built long records of performance in New Zealand workplaces.

Economic growth minister Nicola Willis presented the changes as a response to persistent vacancies and a way to retain people already contributing to productivity. She said:

Skilled and experienced migrants could help plug gaps in the workforce.

Immigration minister Erica Stanford has said some occupations will face extra eligibility requirements to keep migration flows within manageable levels and direct the policy toward areas requiring higher skills. Detailed lists of eligible trades and technician roles are to be published closer to the launch.

As of September 24, 2025, the government has given a launch window of mid 2026, rather than a confirmed opening date. Employers support the prospect of more predictable residence rules, while coalition partner New Zealand First has raised concerns about migrants moving on to Australia and the need to train more workers locally.

The residence changes form part of a wider immigration reset. During 2025, the government has also changed temporary work visa rules, allowed visitors to work remotely for overseas employers and relaxed investor visa settings. Each measure addresses a different need: retaining workers, meeting immediate labour demand or attracting overseas capital.

How the skilled work experience route will work

The new skilled work experience pathway will cover people in skilled roles aligned with levels 1 to 3 of the Australian and New Zealand Standard Classification of Occupations, known as ANZSCO. This classification groups jobs by occupation and skill requirements, helping immigration officials assess whether a role meets the rules.

Applicants will need at least five years of directly relevant work experience. At least two of those years must have been spent working in New Zealand, with earnings during that period at or above 1.1 times the median wage.

The current median wage benchmark is NZ$33.56 an hour, placing the proposed earnings requirement at about NZ$36.90 an hour. The median is the middle wage in a distribution: half of the wages fall below it and half above it. A requirement of 1.1 times that figure sets the threshold 10 percent higher.

The combination of experience, local employment and pay is intended to recognise workers who have already demonstrated their value in New Zealand teams. For employers, the route offers a potential way to retain experienced staff whose practical work histories have not fitted comfortably within existing residence settings.

A separate pathway for trades and technicians

The trades and technician pathway will apply to specified occupations. Applicants will need a relevant qualification at Level 4 or higher and at least four years of skilled experience gained after obtaining that qualification. Their experience must include at least 18 months in New Zealand.

Pay during the required New Zealand period must be at or above the median wage. At the current benchmark, that means NZ$33.56 an hour. This route therefore combines formal training with practical experience, while the skilled work experience route requires a longer work history and a higher local earnings threshold.

The government will publish the eligible trades and technician list before the pathway opens. It has also signalled that a new National Occupation List will replace ANZSCO for future classification. That change could affect how jobs are grouped and assessed, making the mapping between the two systems relevant to applicants and employers.

Both pathways sit within the Skilled Migrant Category Resident Visa. They aim to make the move from skilled employment to residence more predictable for workers who can show either extensive relevant experience or a trade qualification backed by substantial practical work.

Why departures matter to employers

New Zealand businesses face staffing gaps across health, construction, engineering, manufacturing and information technology. Employers and regional leaders warn that losing productive staff makes those gaps harder to close, particularly when experienced workers leave for better pay and larger markets in Australia.

The departure figures arrive during a period of economic weakness. Output has weakened over recent quarters, while vacancies that are difficult to fill have added friction to investment decisions and delivery schedules. A business can have plans to expand yet struggle to carry them out without the people needed to do the work.

Residence matters to this problem because it affects whether employers can count on experienced migrant staff staying. A clearer route gives workers a more predictable basis for planning their lives and gives firms greater confidence about the people available to support future projects.

Foreign affairs minister Winston Peters, who also leads New Zealand First, has raised a different retention concern: migrants who obtain residence, contribute skills for a limited period and then move to Australia. Stats NZ reports that 35 percent of New Zealand citizens who migrated to Australia in 2024 were born overseas.

Peters argued that immigration policy must account for domestic training needs alongside employer demand. He said:

New Zealand is being used as a stepping stone into Australia.

The government's response is that the proposed residence routes focus on migrants already living and working in New Zealand, with eligibility limits applying in sensitive occupations. The policy debate centres on how to retain skills now while building a stronger supply of locally trained workers.

Coalition disagreement and business support

New Zealand First invoked the coalition's agree to disagree provision over the policy. That provision allows a coalition party to state a different position on an issue while remaining part of the government. The party is pressing for more targeted migration settings and a stronger domestic training pipeline.

The Employers and Manufacturers Association says workers with industry credentials and long experience have contributed strongly across sectors but have often struggled to obtain residence. Business groups have argued for years that the existing routes are too narrow for skilled vocational workers.

BusinessNZ says clearer residence pathways can give firms the confidence to invest, expand capacity and take on more apprentices. Its reasoning links retention with training: a stable base of experienced staff gives employers people who can mentor those learning a trade or profession.

Infrastructure groups support the changes but want the opening date brought forward. They cite the risk of project delays if employers cannot hold on to key workers. The government says supporting rules and occupation lists need time to prepare, with more detail to be published ahead of launch.

Temporary work visas have already changed

The Accredited Employer Work Visa, or AEWV, is the main temporary work route for people with a job offer from an accredited employer. Changes across 2025 aim to balance checks on the local labour market with faster processing and clearer expectations for businesses.

From March 2025, the median wage requirement was removed for AEWV roles. Employers must instead offer the market rate for the job and location, meaning pay should reflect what that work normally commands locally. Median wage benchmarks continue to apply in some residence settings, including the proposed pathways.

The minimum relevant experience requirement for lower skilled roles was reduced from three years to two years in March. Visa duration for new applicants in ANZSCO Level 4 or 5 roles also increased from two years to three years, matching the maximum continuous stay. Many people already holding visas lasting two years can seek an extension of one year.

The Job Check, the stage at which an employer's proposed vacancy is assessed, moved toward a declaration model. Employers must advertise with the Ministry of Social Development and show that they considered New Zealand applicants in good faith.

From April 2025, extended interim work rights apply to people moving from other work visas or eligible student visas into the AEWV. Interim rights allow eligible applicants to work while their visa application is being considered. That time can count toward work to residence pathways where relevant.

Family settings have changed too. The income threshold for sponsoring a dependent child rose to NZ$55,844 a year, adjusted for inflation. AEWV holders supporting a partner need to earn at least NZ$26.85 an hour.

A redesigned Job Check and faster processing for employers assessed as lower risk were planned through mid 2025. The temporary visa changes are intended to meet everyday labour demand with clearer checks, while residence pathways focus on roles requiring higher skills.

Seasonal visas and the policy timeline

Two new seasonal work options are scheduled for November 2025. One will offer experienced seasonal workers a visa lasting three years with multiple entries. The other will provide a visa lasting seven months with a single entry. Existing seasonal pathways remain available until then.

The changes span several dates, with temporary work rules arriving before the new residence routes. The main sequence is:

• Early 2025: visitor rules changed to permit remote work for overseas employers or clients, subject to conditions.
• March 2025: AEWV median wage requirements were removed, relevant experience requirements were reduced and longer visas became available for new applicants in ANZSCO Level 4 or 5 roles.
• April 2025: extended interim work rights took effect for eligible AEWV applicants, and revised Active Investor Plus settings began.
• Through mid 2025: a redesigned Job Check and faster processing for employers assessed as lower risk were planned.
• November 2025: two new seasonal work visa options are scheduled to arrive.
• Mid 2026: the two new skilled residence pathways are planned to open, with occupation lists and further guidance to be published beforehand.

Employers therefore need to consider temporary work and residence requirements separately. A worker's ability to take a job under the AEWV depends on that visa's rules, while eligibility for the proposed residence routes will depend on the specified experience, qualifications, occupation and earnings requirements.

What visitors can do while working remotely

Visitors can now work for overseas employers or clients while in New Zealand on a visitor visa or NZeTA. The early 2025 change allows tourists, people visiting family and partners on longer visitor visas to stay connected to jobs based overseas during their visit.

The permission has limits. Visitors cannot work for New Zealand employers, supply services to local customers or do work that requires them to be physically present at a New Zealand workplace. The arrangement is designed for overseas work carried out remotely during a visit.

Tax rules also matter. In many cases, income from services performed in New Zealand can be exempt from New Zealand tax when the person is present for no more than 92 days in a period of 12 months. Some tax treaty arrangements allow up to 183 days.

A person who stays beyond the relevant threshold may owe tax from the first day of presence. Individual circumstances vary, so travellers often seek professional advice before arriving and keep accurate records of the days they spend in the country.

Investor visas seek capital and experience

The government relaxed the Active Investor Plus visa, often called the golden visa, to attract capital, expertise and networks into sectors with strong growth potential. From April 2025, the changes reduced the time new investors must spend in New Zealand to establish residence from three years to three weeks, removed English language requirements and lowered some investment thresholds.

Two categories now dominate applications. The growth category requires a minimum investment of NZ$5 million over three years. The balanced category requires at least NZ$10 million over five years, twice the minimum capital of the growth category and a longer investment period.

Authorities report that applications under the revised settings have exceeded the total recorded over the previous two and a half years. Many applicants are from the United States, followed by China and Hong Kong, with others coming from across Asia and Europe.

Early transfers show tens of millions of dollars already committed. Officials estimate that the application pipeline could represent hundreds of millions of dollars in new investment if approvals proceed and the funds are deployed.

Economic growth minister Nicola Willis said the investor changes aim to attract knowledge and connections alongside money:

New investors don't just bring their dollars to our shores, they also bring skills, knowledge and experience that will drive future economic development.

Supporters argue that more flexible residence rules, stronger screening of investments and targets for venture, technology and sustainable industries can encourage private investment during weaker economic growth. Critics want safeguards and transparency so that the money supports productive activity rather than passive assets.

Graduates and employers prepare for the next rules

International students who earn New Zealand university qualifications are also part of the retention strategy. Points awarded for local university level qualifications are increasing within the Skilled Migrant Category, and the government has signalled a shorter required period of work in New Zealand before graduates can apply for residence.

The points system recognises factors used to assess residence eligibility. Giving more points for local qualifications and reducing the required work period is intended to align education and immigration settings and make it easier for graduates to remain.

Industry groups see the changes as a way to fill technical positions and support research, engineering and health pipelines. Universities and employers want clarity on the transition from study to work to residence as the new occupation list and wage benchmarks take effect.

Workers considering the new pathways can prepare payslips and employment agreements showing their hours and rates of pay, especially for the New Zealand employment periods tied to wage thresholds. Detailed job descriptions, references and evidence of responsibilities will help document relevant experience and its match with occupation definitions.

Graduates should track the updated points and reduced local work requirement once confirmed. Applicants in trades and technical roles will need to check the published occupation list and guidance mapping roles to the National Occupation List.

Employers can align recruitment and retention plans with the proposed residence routes while preparing for declarations used in labour market tests and market rate pay checks under the AEWV. The practical task is to keep employment records ready and assess each worker against the requirements of the relevant route.

Key Points

• Two new Skilled Migrant Category residence pathways are planned for mid 2026 to retain experienced workers and attract trades and technical talent.
• The skilled work experience route requires five years of relevant experience, including two years in New Zealand at 1.1 times the median wage, currently about NZ$36.90 an hour.
• The trades and technician route requires a relevant qualification at Level 4 or higher, four years of experience after qualification and 18 months in New Zealand at or above the median wage.
• Stats NZ recorded 73,400 citizen departures and 25,800 returns between July 2024 and July 2025, a net loss of 47,600 citizens.
• Businesses support clearer residence routes. New Zealand First has invoked agree to disagree, citing onward migration to Australia and domestic training needs.
• AEWV changes include market rate pay, reduced experience requirements, longer visas for lower skilled roles and extended interim work rights. Two seasonal options are scheduled for November 2025.
• Visitors can work remotely for overseas employers or clients, subject to restrictions on local work and tax rules linked to their length of stay.
• Revised investor visa settings have attracted increased applications and early capital transfers. Local university qualifications will receive more residence points, with a shorter work period planned for graduates.