Market Salary Rate
Employers must meet certain salary requirements if they wish to nominate foreign workers (nominees) for employer sponsored visas (e.g. Subclass 482, 494 and 186). More specifically, foreign workers must be paid a fair annual market salary rate (AMSR) for their particular occupation. This is to ensure:
- foreign workers will not be exploited in Australia
- foreign workers get similar salaries as Australian workers working in the same occupation, which in turn guarantees Australian workers will not be undercut by lower-paid foreign workers.
However, market salary rate requirement doesn’t apply if the proposed annual market salary rate for the nominee is at least $250,000.
If the nominee will be paid less than $250,000 annually, employers must determine and show the Immigration that they will pay the nominee at least the annual market salary rate (AMSR) for the nominated position.
Please note the proposed salary for overseas workers must not be less than:
- the AMSR
- Temporary Skilled Migration Income Threshold (TSMIT) which is currently $70,000
- A salary level in caveats (if applicable)
Temporary Skilled Migration Income Threshold (TSMIT)
Temporary Skilled Migration Income Threshold (TSMIT) is:
- $53,900 for Nomination applications lodged up to and on 30 June 2023
- $70,000 for Nomination applications lodged on, and after 1 July 2023.
Non-monetary benefits, such as accommodation or a car, are not included in TSMIT.
How to determine annual market salary rate (AMSR)?
So, the key question here is how to properly decide on the AMSR. This is extremely important simply because the nomination application can be refused if this is poorly determined.
The Annual market salary rate (AMSR) is determined by:
- The salary of an equivalent Australian worker
- Enterprise agreements or industrial awards.
- Salary level in Job Outlook.
- Advertisements from the past 6 months for the same position in the same area
- Renumeration survey or advice from unions or employer associations.
Scenario 1 – if there is an equivalent Australian worker
The annual market salary rate (AMSR) is the salary for the equivalent Australian worker.
If the equivalent Australian worker’s salary in determined based on an enterprise agreement or industrial award, the employer must:
- Provide the name of the agreement or award recorded by the Fair Work Commission
- Specify the pay grade/level and/or occupation group applicable to the nomination
If there is no agreement or award, or the employer pays the equivalent Australian work more than the award level, the employer must provide the relevant employment contracts and payslips as evidence.
Please note:
- an Australian worker who gets paid higher than the nominee (visa applicant), for example, because of longer tenure and/or experience is not considered an equivalent Australian worker. In other words, an equivalent Australian worker’s salary must not be more than that for the nominee, otherwise they are not ‘equivalent’.
- The nominee’s current salary is not part of discussion here – we are concerned with only the proposed salary for the nominee which will take effect only after Subclass 482 visa grant.
- The nomination will be refused if only generic market salary data/information is provided.
Scenario 2 – if there is no equivalent Australian worker, but there is an enterprise agreement or industrial award
The employer must:
- Provide the name of the agreement or award recorded by the Fair Work Commission
- Specify the pay grade/level and/or occupation group applicable to the nomination
Scenario 3 – if there is no Australian equivalent worker, agreement or award
The employer must properly determine the annual market salary rate (AMSR) from at least two following sources:
- Job Outlook information
- Advertisements from the past 6 months for the same position in the same area
- Remuneration surveys by a reputable organisation
- Written advise from unions or employer associations
