Annual market salary rate requirements for sponsors

The Government has put a number of requirements in place to ensure that overseas workers on sponsored visas are paid the market salary rate for their occupations. This is to ensure that these workers are not exploited, as well as ensuring that the migration program does not undercut the local labour market.

All overseas workers must be paid at or above the Temporary Skilled Migration Income Threshold (TSMIT) of $70,000 plus super, however employers must also demonstrate the method they used to calculate the workers’ salary. The relevant salary is known as the Annual Market Salary Rate (AMSR), which must be determined in accordance with the relevant legislative instrument.

The AMSR is relevant for most employer sponsored visas, including the 482, 186, and 494. All nomination applications for those visas must be accompanied by evidence of how the AMSR has been calculated.

The AMSR requirements can be difficult to understand, and can even be difficult to locate. To assist you, we have outlined the AMSR requirements below.

How to calculate the AMSR

As mentioned above, the AMSR must meet the TSMIT minimum of $70,000 plus super. An employer will then have to provide further information as to how the salary was calculated. This requirement is waived if the visa applicant’s salary will be at least $250,000.

The requirements can be broken down as follows:

Where the employer has an equivalent Australian worker

If the sponsoring employer currently has an Australian worker in the same position, with the same salary, the following information must be supplied:

• If there is a relevant enterprise agreement or industrial award, you must state the relevant agreement as well as the salary level.
• If there is no EA or award, you can supply a redacted employment contract and at least two payslips for the equivalent Australian worker.

Where there are no equivalent Australian workers

If the sponsoring employer does not have any Australian workers in the nominated occupation, the following information must be supplied:

• If there is a relevant enterprise agreement or industrial award, you must state the relevant agreement as well as the salary level.
• If there is no EA or award, you must supply at least two of the following:
  • Labour Market Insights information (www.labourmarketinsights.gov.au)
  • Recent job advertisements for equivalent positions in the same or similar location
  • Remuneration surveys completed by a reputable organisation
  • Written advice from Unions or employer associations

It is important to calculate an overseas worker’s proposed income based on the above factors to ensure that you will meet the criteria for the nomination. This should be done prior to starting Labour Market Testing, as the ASMR must be in line with the salary listed in the LMT.

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If you are interested in getting more information about a work or skilled visa, get in touch with Australian Migration Lawyers for a free consultation.

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