Changes to 457 Visa – Market Salary Rates and what impact this might have
From 14 September 2009, all sponsors of Subclass 457 visa holders (457 sponsors) will be required to adhere to new Sponsorship Obligations.
The Temporary Skilled Migration Income Threshold – currently $45,220 per annum
The TSMIT will also help ensure that Subclass 457 visa holders do not impose undue costs on the Australian community or find themselves in circumstances which may put pressure on them to breach their visa conditions. This is particularly important given these workers do not have access to a range of government support available to Australian citizens and permanent residents.
Subclass 457 nominations and the TSMIT
The TSMIT has no bearing on what the Subclass 457 visa holder should be paid in the workplace. A nomination under the Subclass 457 visa program will be refused in most cases if the market salary rate for the nominated position is below this level of income.
For the purposes of a Subclass 457 nomination it is not possible for a 457 sponsor to inflate a nominated worker's proposed salary in order to pass or meet the TSMIT requirement. It is the market salary rate for the nominated position that is compared to the TSMIT. The claimed intended salary in the nomination should reflect the terms and conditions of employment.
Example: If the market salary rate for an occupation is $39,500 – that is, the market salary rate amount that is paid to equivalent Australian in the employer's workplace – then the nomination would normally be refused, as the salary is below TSMIT. Even if the sponsor decided to offer the nominee a salary of $45,220, then the nomination could still be refused, as it is the market salary rate that the department compares to TSMIT, not the actual salary proposed.
Transitional arrangements for existing visa holders
There are some transitional arrangements for current sponsors and current visa holders. These ensure that sponsors currently paying the existing Minimum Salary Level (MSL) to Subclass 457 visa holders already in Australia have until 1January 2010 to move to paying market salary rates.
Until this time, sponsors must continue to pay existing visa holders a salary that is not less than the MSL set out in the relevant legislative instrument. This represents a temporary continuation of the existing arrangements as they apply to existing visa holders.
Until 1 January 2010, sponsors must continue to ensure that Subclass 457 visa holders' base rate of pay is not less than the prescribed salary levels, especially where the market salary rate would otherwise be below the MSL. There are five such levels.
$81,040 for Subclass 457 visa holders who benefit from the English language exemption
$55,725 for Subclass 457 visa holders working in Information and Communication Technology (ICT) occupations who were granted their visa under certified regional employment arrangements
$61,920 for all other Subclass 457 visa holders working in ICT occupations
$40,705 for all other Subclass 457 visa holders who were granted visas under certified regional employment arrangements
$45,220 for all other Subclass 457 visa holders.
These transitional arrangements no longer apply if an existing Subclass 457 visa holder applies for a new Subclass 457 visa, changes their employer sponsor, or is the subject of a new nomination varying their occupation. The new nomination would be considered against the new requirements, including the TSMIT.
For those whose market salary rates are lower than the present Minimum Salary levels, the transitional arrangements have a safety net requiring sponsors to continue to pay at least the minimum salary level for the duration of the existing visa.
Comment on this post
telli
February 15, 2011 02:43:40
hi I am going to apply 457 visa could you tell me how much my salary must be per year, I got my employer in country side area I mean in rural area, I am waiting, please answer me as soon as possible
thanks
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