Salary Requirement For 186 ENS & 187 RSMS Visas

 

If your employer wants to sponsor you for a Employer Nomination Scheme 186 or Regional Sponsored Migration Scheme 187 visa, your employer needs to demonstrate that your terms and conditions of employment are no less favourable than the terms and conditions which an ‘equivalent Australian’ employee is or would be receiving. This includes showing that you are paid a salary that is at least equal to the Australian market salary rate for your role.

Your salary defined – ‘Guaranteed Annual Earnings’ (GAE)

As part of the application, your employer will need to disclose your salary, or ‘Guaranteed Annual Earnings’. Only certain types of payments can be included in the ‘Guaranteed Annual Earnings’:

  1. Your base wage
  2. Any payments which are applied or dealt with on your behalf or at your direction (e.g. your accommodation or housing allowance which your employer covers and pays directly to the landlord)
  3. The agreed monetary value of non-monetary benefits (e.g. health insurance, car, mobile phone and laptop etc.)

The following cannot be counted towards GAE:

  1. Any payments or allowances which cannot be determined in advance such as commissions, incentive-based payments and bonuses, and overtime (unless the overtime is guaranteed)
  2. Reimbursements
  3. Compulsory superannuation contributions. Guaranteed contributions to superannuation that exceeds the contribution that is required under legislation can be counted towards GAE

Demonstrating the Australian Market Salary Rate

Your sponsoring employer needs to demonstrate that the terms and conditions of your employment are no less favourable than the terms and conditions of employment for an equivalent Australian citizen or permanent resident.

If your employer already has an Australian citizen or permanent resident that is working in the same location and role as the nominated occupation (i.e. the role sponsored for the 186 or 187 visa), then your terms and conditions of employment need to be at least as favourable as this equivalent Australian citizen or permanent resident.

This can be shown by providing a copy of the contract of an Australian citizen or permanent resident that is working in the same position and location as your nominated role.

Your employer can remove all forms of personal identification from the equivalent Australian’s contract. If this contract is a bit old and the equivalent Australian’s salary has increased since the contract was issued, then your employer should include a statement which confirms the current salary.

You must be paid a GAE that is at least equivalent to the Australian employee’s salary.

Because DIAC needs to compare ‘apples with apples’, there are also components of the equivalent Australian’s salary which need to be excluded. Since your employer can’t count bonuses, compulsory superannuation and payments which can’t be determined in advance in calculating your GAE, these types of payments can also be excluded from the equivalent Australian’s salary. Once your employer has excluded these types of payments, it can determine the minimum GAE that you must be paid.

Beyond looking at just the salary, DIAC will also compare the equivalent Australian’s terms and conditions of employment and assess whether your terms and conditions are at least as favourable. This includes looking at various aspects of the employment contract such as the number of hours of work required, leave entitlements etc.

Relevant Industrial Award

Your nominated occupation may be governed by a relevant industrial award which will specific the salary that you should be paid. For example, a registered nurse working in Victoria will have his or her terms and conditions of employment governed by the Nurses Award 2010, including the salary that he or she should be paid.

You can be paid a salary higher than the level specified in the relevant award.

What if the nominating employer doesn’t have an equivalent Australian working for them?

Your employer can provide evidence of what the Australian market salary rate is for your nominated role and show that your GAE is at least equal to the market rate. This is generally demonstrated by providing Australian market salary survey data. This data needs to be relevant to the nominated role and the location where you will be working (i.e. market salary data, such as Hays Salary Guides, will usually give specific data for various capital cities around Australia).

Where do I find appropriate market data for my role/industry?

I’m not an expert at finding the Australian market salary data. This is really a task for your employer’s HR and finance teams. But I do get asked this question a lot. So here some of the resources that I use for finding market data:

Now the data usually provides you with a range for the Australian market salary rate for a particular role (e.g. $70,000 to $85,000 per annum). If your GAE falls within this range, or is above it, then the market rate requirement is generally met. If your GAE is at the bottom end of the range, your employer may be asked to explain why the lower end of the range was selected as the applicable market rate. The explanation may relate to your current level of experience, or your qualifications and skill set etc. For instance, the employer may argue that you don’t have some particular skills that are unique to the Australian market, and that you are paid the lower end of the market rate because you still need to acquire and develop these skills.

What if your GAE is below the market rate? Will DIAC refuse the nomination application?

Simply put, the nomination application may be refused if the market rate requirement is not satisfied. The case officer may contact your employer and let them know that this requirement is not met and ask them whether they would like to withdraw the application (or they may just refuse the application).

Professional Assistance

Need assistance with an Australian migration law matter? Please contact me if you require professional assistance.

See the feedback that we have received from our clients.

103 thoughts on “Salary Requirement For 186 ENS & 187 RSMS Visas

  1. Neetu

    Hi,,
    Sir
    My question is on 187 visa as i am happy everywhere, dont want to leave my employer but i want to get paid on abn on comission basis as this way my salary will be doubled. If i keep working on tfn, i will be getting limited salary. I was working on commission basis before my visa.my employer is happy to do so if allowed. So if dibp is ok with that or not

    Reply
    1. Peng Cheng Post author

      Hi Neetu,
      Sorry but I don’t know what the Department’s position on this is – suggest that you speak with the Department.
      PC

      Reply
  2. Rahul Madan

    Hello Peng Cheng, I have applied 187 visa as a cook in Regional area obviously. What are the chances to get my visa as there is one more cook and a restaurant manager have been sponsored from the same place. Is there any advantage of working at same place already for one year? Will my Diploma and advanced Diploma of hospitality help me by any chance? Thanks

    Reply
    1. Peng Cheng Post author

      Hi Rahul,
      Sorry but I can’t provide advice about your application just based on your comment information – I suggest that you contact your case officer if you have concerns.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  3. zakir ahmed syed

    Hi Penn Cheng
    I’m 44yrs Nz citizen in Perth since 2009.
    Currently enrolled in the course Apprentice in Bakery finishing end of next year, working full-time at Bakers Delight.
    Am looking for 186 visa to apply for Australian PR
    Please advise me if there any easy options available.
    Thanks
    Zak

    Reply
  4. Jason

    Hello Peng Cheng,

    I have received an offer from a Brisbane based consulting company as consultant based on contractor agreement for 2 years period and renewable later. The consulting company assigns me to provide service to a mining company, as I have been in the mining and related industry for over 7 years, my past experiences covering trading, marketing, transportation, purchasing, evaluation and funding etc. however my major in university is Mechanical Engineering. Can I apply for 457 visa or even 186 visa, provided my employer will sponsor me for that?

    Thanks.

    Jason

    Reply
    1. Peng Cheng Post author

      Hi Jason,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  5. Nicholas

    Hi Peng,

    I would like to know the precaution to take in the likely event that the annual salary isn’t met. There are a few factors from both parties that I’m unsure can be rectified. So is there anything the nominee can do?

    Thanks for the time and help.

    Reply
    1. Peng Cheng Post author

      Hi Nicholas,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  6. Mike

    Hi pg

    Happy new year
    I have question regarding super the thing is if my employer not pay my super is there any way out ?as I already lodge 186visa applications ?and also employer mentioned in payslip that he paid me super!

    Does case officer asked about super detail?

    Reply
    1. Peng Cheng Post author

      Hi Mike,
      The Department doesn’t generally ask for superannuation records, but they can ask for this.
      Perhaps the business needs to speak with their accountant to fix your super issues – superannuation isn’t a migration law issue.
      PC

      Reply
  7. Iain Reid

    Hi Peng!

    I recently changed employer and transferred my 457 to my new employer. Does my 457 start again I.e. Do I have 4 years from date of transfer? If not, at the end of the 4 years can I automatically qualify for residence?

    Thanks Heaps!

    Reply
  8. Dipan

    Hi Peng,

    I am located in india. I willing to come Australia under 187 visa. So how can it possible. Can you advice me.

    Reply
  9. Nunita

    Hi There,
    I am due to apply my RSMS 187 visa. My sponsor is going to pay about $30,000/year. This is obviously less than required minimum salary for an automotive electrician. There is a guy also doing similar role as me and he is just about to apply his PR after finishing 1 year job ready programme. But he is not PR yet. His wages is same as what i will be getting paid. Will i be able to show his payment agreement as my visa reference?
    many thanks in advance

    Reply
    1. Peng Cheng Post author

      Hi Nunita,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply

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