Introduction
For employers sponsoring skilled workers, salary determination is a critical aspect of compliance with migration and industrial laws. While many focus on meeting the Temporary Skilled Migration Income Threshold (TSMIT), Core Skills Income Threshold (CSIT), Specialist Skills Income Threshold (SSIT), or the Annual Market Salary Rate (AMSR), enterprise agreements — where applicable — play a decisive role in setting wages. Understanding how these agreements impact salary is essential for both employers and visa applicants to meet the salary requirement under employer-sponsored visas.
What are enterprise agreements?
Enterprise agreements are legally binding documents that set out the minimum employment conditions for a specific business or a group of businesses. They govern wages, work arrangements, and entitlements, ensuring consistency across the workforce. Most employees receive their pay and benefits based on either an award or an enterprise agreement. This operates alongside the National Employment Standards (NES) — a set of minimum entitlements that all employees must receive under Australian industrial law. For more information on Enterprise Agreements, please access the Fair Work website here.
The role of enterprise agreements in the determination of the AMSR
Employers who wish to nominate workers for subclass 482, 494, 186 and 187 must meet the salary requirement under the Migration Regulations. To meet this requirement, if the salary is below AUD250,000, the employers must satisfy that:
- The AMSR has been correctly determined;
- The sponsored worker will not be paid less than the AMSR, that is, less than an Australian worker would be paid; and
- both the AMSR and the sponsored worker is no less than the relevant income threshold (e.g. CSIT, SSIT or TSMIT).
However, when an enterprise agreement is in place, it supersedes AMSR considerations and becomes the primary reference for salary determination. Therefore, if an enterprise agreement applies to a certain business, the employer must ensure that the sponsored workers are offered wages in accordance with such agreement, rather than relying solely on the threshold imposed under Migration Regulations or market salary benchmarks.
Relevant information to satisfy the salary requirement
According to Policy, if there is an enterprise agreement, the salary requirement can be satisfied with the following relevant information:
- The name of the enterprise 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.
- Supporting evidence is generally not required, but if the AMSR differs from the award—due to factors like penalty rates or local job market salaries—employers must justify the amount with documented reasoning.
Key Considerations for Employers
- Compliance with enterprise agreement – If an enterprise agreement exists, the salary offered to a sponsored worker must align with the rates specified in the agreement. Employers cannot simply default to AMSR calculations.
- Avoiding underpayment risks – Employers who fail to adhere to enterprise agreement salary provisions risk non-compliance with industrial laws, which can lead to penalties and visa nomination refusals.
- Relevant information – the nomination application must reference the enterprise agreement when determining salary, rather than relying on AMSR benchmarks. Generally, no supporting evidence is required if the salary is consistent with the agreement.
Key Takeaways
- While thresholds under the Migration Regulations, e.g., CSIT, set a minimum baseline, enterprise agreements may require higher wages.
- When an enterprise agreement applies, it takes precedence over AMSR calculations in determining salary for sponsored workers.
- Employers must ensure full compliance with enterprise agreement terms, not just to fulfill the requirements under migration law but also to meet their obligations under industrial law.
Conclusion
The salary requirement for employer-sponsored visas ensures that skilled migrant workers are compensated fairly and in line with Australian workplace laws. While Migration Regulations set minimum thresholds such as TSMIT, CSIT, and SSIT, the salary offered must not be lower than the Annual Market Salary Rate (AMSR) unless an enterprise agreement applies. If an enterprise agreement is in place, employers must align wages with its provisions rather than relying on AMSR calculations. Compliance with salary requirements is critical not only for visa approval but also to meet industrial law obligations, avoid underpayment risks, and maintain fair labour practices. Proper documentation and justification—especially in cases where penalty rates or higher local salaries affect pay—help ensure adherence to regulatory standards.