Australia Mandates Equal Pay for Overseas Workers

“Australia ensures overseas workers are not paid less than an Australian worker doing the same work.“

Recently, Australia revised the Temporary Skilled Migration Income Thresholds. According to the recent update made by the Australian Government, Australian employers who wish to nominate workers for Temporary Skill Shortage Visa and Skilled Employer Sponsored Regional Visa must meet certain requirements. And such requirements are to be met for Subclass 482, 494, 186, and 189.

To meet the requirements, the Australian Market Salary Rate (AMSR) and the salary for overseas workers, excluding non-monetary benefits, must be equal to or higher than the Temporary Skilled Migration Income Threshold (TSMIT). This threshold is a benchmark set to ensure that skilled migrant workers receive a minimum income standard.

The prescribed standards, especially the Temporary Skilled Migration Income Threshold (TSMIT), play a pivotal role in guaranteeing that foreign workers are not underpaid compared to local Australian employees. This represents a significant stride towards establishing equitable remuneration and creating a level playing field for all workers.

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The Temporary Skilled Migration Income Thresholds (TSMIT) are as follows:

• AUD 73, 150 for applications lodged on and between 1 July 2024 and 30 June 2025.
• AUD 70, 000 for applications lodged on and between 1 July 2023 and 30 June 2024.
• AUD 53, 900 for applications lodged on and between 1 July 2013 and 30 June 2023.

The Annual Market Salary Rate (AMSR) for the nominated occupation plays a crucial role in establishing fair compensation for employees. It's essential to remember that workers' guaranteed annual earnings must not fall below the relevant Temporary Skilled Migration Income Threshold (TSMIT) when lodging the application.

Additionally, it's important to note that non-monetary benefits like accommodation or a car are not included in the TSMIT, and employers must provide these benefits in addition to meeting the TSMIT requirements.

The Annual Market Salary Rate (AMSR) is established by evaluating the compensation received by an Australian worker in a comparable position. This assessment takes into account enterprise agreements, job outlook data, and advertisements for similar positions over the past six months in the same geographic area, remuneration surveys, and guidance provided by labour unions or employer associations.

• Effective 1 July 2024, the Temporary Skilled Migration Income Threshold (TSMIT) has been raised from $70,000 to $73,150.
• Any new nomination applications submitted from this date are required to comply with the revised TSMIT of $73,150 or the annual market salary rate, whichever is greater.
• It's important to note that this adjustment will not impact current visa holders or nominations lodged prior to 1 July 2024.

For certain types of visas in Australia, employers must demonstrate that they have yet to find a qualified Australian worker for the position before nominating an overseas worker. This involves conducting a labour market test (LMT), which typically includes advertising Australia's job opportunities to assess local talent's availability.

The Temporary Skill Shortage Visa (subclass 482) addresses short-term skill shortages in Australia by allowing employers to sponsor skilled workers from overseas when they cannot find appropriately skilled Australian workers. This visa allows skilled workers to work in Australia for up to 2 years under the Short-term stream. It is a valuable resource for employers needing to fill critical skill gaps and for skilled workers seeking employment opportunities in Australia.

The Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) is designed to help regional employers address labour shortages in their area by allowing them to sponsor skilled workers from overseas when they are unable to find suitably skilled Australian workers. This visa is part of the Australian government's efforts to encourage economic growth and development in regional areas by allowing employers to access the skills they need to support their businesses.

Conclusion

Reach out to SIEC for Application Inquiries and assistances.

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