Salary Requirements to nominate an overseas worker (subclass 482, 186, 187)

If you intend to sponsor foreign workers in your business you must meet salary requirements.  These requirements are designed to ensure that overseas workers are paid the market salary rate and that the employer sponsored visa program is not used to undercut the local labour market.

What are the salary requirements to nomination an overseas worker?

There are two salary requirements that an employer must:

Firstly, you must demonstrate that you will pay an overseas employee the Annual Market Salary Rate (AMSR).  The AMSR is the earnings that an Australian worker earns, or would earn, for performing equivalent work on a full-time basis for a year in the same workplace at the same location.

Secondly, you must demonstrate that you will pay an overseas employee above the Temporary Skilled Migration Income Threshold (TSMIT).  The TSMIT is a calculation of the minimum earnings required for a migrant worker to be self-reliant in Australia.  The TSMIT is currently set at $53,900 AUD.

What evidence do I need to provide to meet salary requirements?

The evidence required will depends on whether you employ an equivalent Australian worker in your business.  If you have a more or less experienced worker doing similar work at a lower or higher pay grade they are not considered an equivalent Australian worker.

1) Equivalent Australian worker

Scenario Relevant Information
Salary is determined in accordance with an enterprise agreement or industrial award The name and a copy of the agreement or award as recorded by the Fair Work Commission where applicable.
The salary level/occupation group that applies to the nomination occupation must be specified.
An enterprise agreement or industrial award does not apply Copies of relevant employment contracts and pay slips for other Australian workers performing equivalent work in that workplace.

2) No Equivalent Australian worker

Scenario Relevant Information
Salary is determined in accordance with an enterprise agreement or industrial award The name of the agreement or award as recorded by the Fair Work Commission where applicable.  The salary level/occupation group that applies to the nomination occupation must be specified.
An enterprise agreement or industrial award does not apply Explanation of how you determined what an equivalent Australian worker would be paid and at least two of the following:

·       Job Outlook information

·       advertisements from the last six months for equivalent positions in the same location

·       remuneration surveys completed by a reputable organisation

·       written advice from registered unions or employer associations.

Exceptions to salary requirements

If a nominee’s guaranteed annual earnings are above AUD$250,000 an employer is taken to meet the salary requirements.  Medical professionals are also subject to exceptions.

Salary requirements are an important part of the employer sponsored visa program.  Providing unsatisfactory evidence with a nomination application can lead to the application being refused.  If you are thinking to sponsor an overseas worker in your business Live Work Australia can help.  Live Work Australia is a team of dedicated Australian immigration lawyers who deal exclusively with migration to Australia.  We provide Australian visa solutions to individuals and businesses. View our other pages to learn more about our services or contact 1300 230 313 or info@liveworkaustralia.com.au and get in touch with our specialist legal team.

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