Annual Market Salary Rate

Annual Market Salary Rate in Australia

For Subclass 482 and Subclass 494 visas, the nominating employer must demonstrate to the Department of Home Affairs that the salary offered to the nominee is equivalent to what would be paid to an Australian citizen or permanent resident in the same role.

Salary and Employment Conditions for Nominations

Employers wishing to nominate workers who are not Australian citizens or permanent residents under Subclass 482, Subclass 186, or Subclass 494 must comply with specific salary and employment condition requirements. These requirements ensure that:

  • Overseas workers receive no less than the salary of an Australian worker performing the same role in the same location, referred to as the Annual Market Salary Rate (AMSR). This provision safeguards the Australian labor market from potential undercutting.

If the overseas worker is to be compensated with an annual salary below A$250,000, the employer must demonstrate the following:

  1. The AMSR has been accurately determined for the nominated position.
  2. The overseas worker’s salary will not fall below the AMSR, meaning it will not be less than what an Australian citizen or permanent resident would receive.
  3. Both the AMSR and the overseas worker’s salary, excluding non-monetary benefits, must meet or exceed the Temporary Skilled Migration Income Threshold (TSMIT).

Temporary Skilled Migration Income Threshold (TSMIT)

The current TSMIT is A$53,900. Both the AMSR for the nominated position and the guaranteed annual salary for the overseas worker must be at least equal to the TSMIT. It is important to note that the TSMIT does not encompass non-monetary benefits, such as accommodations or vehicles; these benefits must be provided in addition to the TSMIT.

Annual Market Salary Rate (AMSR)

The AMSR is determined based on the remuneration of an equivalent Australian citizen or permanent resident, as well as factors such as enterprise agreements, industrial awards, job outlook data, recent advertisements in the same geographic location, and remuneration surveys or advice from unions or employer associations. The following processes can be followed to establish the AMSR:

  1. Equivalent Australian Worker Present:
    • The AMSR is equivalent to the salary paid to this worker.
  2. Salary Based on Enterprise Agreement or Industrial Award:
    • If the worker’s compensation is based on an enterprise agreement or industrial award, the following documentation must be provided:
      • The name of the agreement or award as recorded by the Fair Work Commission.
      • The applicable salary level or occupation group.
  3. Absence of Relevant Agreement or Award:
    • If no pertinent agreement or award exists, or if the employer compensates Australian citizens or permanent residents above the award rate, the employer must submit:
      • Copies of relevant employment contracts.
      • Pay slips for the employee.

Important Notes:

  • An Australian worker with differing experience or pay grade in a similar role is not considered equivalent to the nominee.
  • If the nominated overseas worker’s salary is less than that of the equivalent Australian worker, the nomination will be refused.
  • Providing only generic market salary data or salary surveys will result in a nomination refusal.
  1. No Equivalent Australian Worker but Presence of an Enterprise Agreement or Award:
    • In such cases, the employer must provide:
      • The name of the applicable agreement or award as recorded by the Fair Work Commission.
      • The salary level or occupation group relevant to the nomination.
  2. Absence of Equivalent Worker, Agreement, or Award:
    • The employer must determine and demonstrate the AMSR to the Department of Home Affairs by explaining how they derived the equivalent salary for an Australian citizen or permanent resident. Acceptable evidence can include:
    • Job outlook information.
    • Advertisements from the past six months for similar roles in the same area (e.g., state or urban versus regional).
    • Remuneration surveys conducted by reputable organizations.
    • Written advice from unions or employer associations.

Important Notes:

  • Adequate evidence is crucial. As a general rule, a minimum of two independent information sources is required to meet AMSR determination.
  • Vague or unlabelled salary surveys without explanation may lead to the refusal of the nomination application.
  • If the determined market salary rate is a ‘range,’ it is essential to clarify and provide specific reasons for selecting that AMSR.

The salary offered to the prospective employee during Labour Market Testing for Subclass 482 visas must comply with the AMSR.

Disclaimer: Aussie Migration Services Pty Ltd and its associates are independent consulting entities and are not affiliated in any manner with the Australian Department of Home Affairs (DOHA). The information provided on this website does not constitute personal migration advice. For tailored migration advice based on your specific circumstances, please contact one of our Immigration Consultants or express your interest through our associates.