New salary benchmarks for foreign skilled workers from July 1st 2025

Following a 4.6% increase in the annual Average Weekly Ordinary Time Earnings (AWOTE), the Australian government has announced new wage standards for overseas workers. The new wage indexation review will take place from July 1, 2025. Find out what is changing.

Why is this change happening?

Annual estimates of Average Weekly Ordinary Time Earnings (AWOTE) based on an average workweek with regular time earnings for adults working full time increased 4.6% annually to $1,975.80 in November 2024.

According to the government, the changes aim to ensure fair wages for skilled migrants while maintaining the integrity of the labour market and reflecting the government's commitment to annual indexation.

Which visas are impacted?

The following limits will apply to new nomination applications filed on or after July 1, 2025:

• Core Skills Income Threshold (CSIT): Rising from AUD 73,150 to AUD 76,515, this applies to the Skills in Demand visa (subclass 482 – Core Skills stream) and Employer Nomination Scheme visa (subclass 186). This ensures that workers within those core skilled jobs are being paid fairly.
• Specialist Skills Income Threshold (SSIT): Increasing from AUD 135,000 to AUD 141,210. This pertains to the Specialist Skills stream of the Skills in Demand visa (subclass 482). This change targets highly specialized occupations that require a higher pay bracket.
• Temporary Skilled Migration Income Threshold (TSMIT): Increasing from AUD 135,000 to AUD 141,210. This pertains to the Skilled Employer Sponsored Regional visa (subclass 494) and Regional Sponsored Migration Scheme visa (subclass 187). This change ensures that regional skilled workers are also protected by the wage increase.

Final considerations:

Companies applying for any of the above visas after 1 July for employees earning an annual salary of less than AUD250,000 must show that the worker meets the new salary standard aligned with the Annual Market Salary Rate (AMSR), which is to be determined by the relevant legislative instrument.

The AMSR must meet the Temporary Skilled Worker Migration Income Threshold (TSMIT), which will increase from 1 July (see table above for minimum income per visa) plus super.

On the other side, these changes do not apply to current applications lodged before July 1^st, 2025.

For more updates on visa policies and skilled migration opportunities, contact a Seven Corp specialist for a free consultation.

Email employer@sevencorpcom.au
Phone number: 1300 157 707