For standard business sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that you must pay your workers the market salary rate. This requirement has been designed to protect skilled overseas workers from exploitation and to ensure that skilled workers are paid no less than an Australian worker would, doing the same work in the same location, the ‘’annual market salary rate” (AMSR).
If the overseas worker will be paid an annual salary less than AUD250,000 the business will need to show:
- AMSR has been determined correctly
- The overseas worked will not be paid less than the ASMR, that is, less than an Australian worker will be paid both the AMSR and what the overseas worker will be paid, excluding any non-monetary benefits in both cases, is no less than the Temporary Skilled Migration Income Threshold (TSMIT). The TSMIT is currently $53,900. The TSMIT does not include non-monetary benefits such as accommodation or a car. Such benefits must be paid in addition to the TSMIT.
Annual Market Salary Rate
- The Annual market salary rate (AMSR) is determined by looking at what you would pay equivalent Australian workers, enterprise agreements or industrial awards, job outlook information, advertisements for the last 6 months in the same location, remuneration survey or advice from unions or employer associations.
Determining the AMSR where there is an equivalent Australian worker
If the worker’s salary is based on an enterprise agreement or industrial award, a business may provide:
- the name of the agreement or award as recorded by the Fair Work Commission, where applicable
- the salary level or occupation group that applies to the nomination
If there is no relevant agreement or award, or the business is paying Australian employees above the award rate, provide:
- copies of relevant employment contracts and
- pay slips for this employee
Determining the AMSR where there is no equivalent Australian worker but there is an enterprise agreement or industrial award
Provide:
- the name of the agreement or award as recorded by the Fair Work Commission, where applicable
- the salary level or occupation group that applies to the nomination
Where there is no equivalent worker, agreement, or award
The business will need to explain how they used relevant information to determine what the equivalent worker will be paid. Relevant information could include at least two of the following:
- Job Outlook Information
- Advertisements from the last six months for equivalent positions in the same location (e.g., state, urban vs regional area)
- remuneration surveys completed by a reputable organisation
- written advice from unions or employer associations
In summary, an employer needs to demonstrate that the terms and conditions of employment are no less favourable than the terms and conditions which an ‘equivalent Australian’ employee is or would be receiving. To find out more about sponsorship obligations and visa options, please do not hesitate to contact ross@crystalmigration.net