Salary compliance remains one of the most scrutinised aspects of Australia’s employer-sponsored visa framework. For employers sponsoring workers under programs such as the Skills in Demand visa (subclass 482), Employer Nomination Scheme (subclass 186), and Skilled Employer Sponsored Regional visa (subclass 494), the question is not simply whether the nominated salary “looks reasonable”. The sponsor must be able to show that the worker is being paid at least the required minimum under the migration framework, and that the salary remains compliant throughout employment.
A sponsored worker’s pay must meet the relevant migration income threshold and reflect the Annual Market Salary Rate (AMSR).
This article sets out the rules employers should understand, the common risk areas, and the recent legislative updates to AMSR.
The Minimum Salary Obligations for Sponsored Workers
Sponsored workers must generally be paid:
- at least the relevant migration income threshold for the visa or stream;
- at least the Annual Market Salary Rate (AMSR) for the position (unless earnings are $250,000 or higher); and
- on the terms and conditions no less favourable than an equivalent Australian worker performing the same work in the same location.
A common misunderstanding is that if the salary is above the relevant threshold, the nomination is compliant. However, if the market salary for the role is higher, the worker must be paid at that higher amount.
Just as importantly, the amount relied on must ordinarily be made up of guaranteed earnings. A package that only reaches the minimum because of discretionary bonuses, uncertain commissions, or variable overtime can create a compliance problem.
What Remuneration Should be Counted?
Employers should focus on the worker’s guaranteed annual earnings when assessing the AMSR compliance.
Migration Regulations exclude unpredictable components from “earnings”. Specifically, an employee’s earnings do not include payments that cannot be determined in advance. For example:
- discretionary bonuses
- projected commission
- non guaranteed overtime
- contingent allowances
- other variable amounts that are not guaranteed
Current Salary Thresholds
Employers should be aware that different salary thresholds apply depending on the visa subclass and stream. These thresholds are separate from the AMSR requirement and must be considered alongside any obligation to pay a sponsored worker no less than an equivalent Australian worker.
For the current financial year (1 July 2025 to 30 June 2026):
Core Skills Income Threshold (CSIT): $76,515
- Applies to Subclass 482 (Core Skills Stream) and Subclass 186
Specialist Skills Income Threshold (SSIT): $141,210
- Applies to Subclass 482 (Specialist Skills Stream)
Temporary Skilled Migration Income Threshold (TSMIT): $76,515
- Applies to Subclass 494
For the next financial year (from 1 July 2026):
- CSIT will increase to $79,499
- SSIT will increase to $146,717
As at 31 March 2026, the position on TSMIT for 2026–27 should be stated more carefully. Unlike CSIT and SSIT, which are indexed automatically under the Regulations, TSMIT requires a separate legislative update. Current commentary indicates that TSMIT technically remains $76,515 unless and until it is formally amended, although some industry commentary expects it may align with the indexed figure of $79,499. TSMIT should be checked separately, closer to 1 July 2026.
Labour Agreement Cases
Labour Agreement cases sit outside the standard sponsorship settings in important respects, and employers should be reminded that salary obligations may be modified in the terms of the relevant agreement. That said, a labour agreement does not remove the need for salary compliance. It usually changes how that compliance is assessed.
A labour agreement may:
- modify the standard salary threshold that would otherwise apply
- permit a concession to the usual threshold requirements or
- impose its own salary methodology or market salary requirements.
Annual Market Salary Rate (AMSR)
In simple terms, AMSR is the annual rate of pay that would be paid to an Australian worker performing the same role, in the same location, with the same level of skill and responsibility. This usually involves showing what an equivalent Australian worker is paid, or otherwise providing market evidence for the role.
Where annual earnings are $250,000 or higher, the AMSR requirement is generally treated as satisfied for nomination purposes.
This requirement is designed to ensure that visa holders are not paid less than the Australian market salary simply because they are sponsored workers.
How does AMSR apply?
As a general rule, if the nominee’s annual earnings are below $250,000, the sponsor must be able to demonstrate that the nominated salary is at least the AMSR.
This means the salary offered to the sponsored worker must generally be:
- no less than the relevant migration threshold that applies to the visa or stream; and
- no less than the AMSR for the position.
If the market rate for the role is higher than the applicable migration threshold, the employer must generally pay the higher amount.
How is AMSR determined?
- By reference to an equivalent Australian worker (Australian citizen or permanent resident): Where there is an Australian worker performing equivalent work in the same workplace and location. That comparison should be based on real equivalence, including equivalent duties, seniority, qualifications and experiences etc.,
- By reference to external market evidence: Where there is no such Australian worker, the sponsor will need to rely on objective market data. This may include: the applicable modern award, an enterprise agreement, industry remuneration surveys, published salary guides, recent job advertisements for similar roles in the same location, or other reputable market salary evidence.
Recent Legislative Updates: Annual Market Salary Rate (AMSR) Amendments
The Migration Legislation Amendment (Annual Market Salary Rate) Instrument 2026 introduces important changes to how the Annual Market Salary Rate (AMSR) is determined under the sponsorship framework. Applicable to nomination applications lodged but not decided before 25 March 2026 OR nomination applications lodged on or after 25 March 2026, the instrument amends IMMI 18/033 and sets out updated methodologies that provide greater flexibility for employers.
The key change is a more flexible approach to determining AMSR where a relevant industrial instrument applies, including a Fair Work instrument, state industrial instrument, or transitional instrument.
Under the updated framework, employers are no longer strictly limited to relying on the applicable instrument rate. Instead, the AMSR can now be determined by using one of the following approaches:
Employer Responsibilities: Keeping Pay Compliant Throughout Sponsored Employment
For sponsors, salary compliance is not a one off exercise completed at nomination stage. The obligation is ongoing. A salary that was compliant when the nomination was lodged can later become non-compliant if the employee’s remuneration, duties, hours, location, or comparator position changes.
Employers should therefore treat salary compliance as a continuing sponsorship obligation and review it throughout the life of the employment.
Once the nomination has been approved, sponsors should ensure that the sponsored worker is paid:
- at least the approved and nominated salary
- on terms and conditions no less favourable than those provided to an equivalent Australian worker and
- in accordance with any applicable award, enterprise agreement, labour agreement, and general workplace law obligations
Fair Work and Migration Law Both Apply to Sponsored Workers
Employers should keep in mind that sponsored employees in Australia are protected not only by the migration framework, but also by the ordinary workplace law system, including the Fair Work Act 2009 (Cth), the National Employment Standards (NES), any applicable modern award or enterprise agreement, and other employment-related legislation.
Sponsored workers are generally entitled to the same core workplace protections as other employees in Australia, including protections relating to:
- minimum pay and conditions;
- leave entitlements;
- workplace health and safety;
- protection from adverse action and coercion;
- protection from sham contracting; and
- access to complaint and enforcement mechanisms
Final Thoughts
Salary compliance for sponsored employees requires more than meeting a minimum figure at nomination. It involves ongoing monitoring, clear documentation, and a structured approach to ensure alignment with both migration and workplace obligations.
With the recent AMSR amendments introducing greater flexibility, employers now have more options in how salaries are determined. At the same time, this increases the importance of getting the approach right and ensuring it is properly supported by evidence.
If you are unsure whether your current salary structures meet sponsorship requirements, or if you are planning new nominations, it is important to address this early. A proactive review can help identify risks, avoid underpayment issues, and ensure your business remains compliant.
Our team at Migration Affairs works closely with employers to assess salary frameworks, support nomination strategy, and provide ongoing compliance guidance. If you would like to review your current arrangements or need support with an upcoming sponsorship matter, we encourage you to get in touch.
Contact us today:
📧 info@migrationaffairs.com.au
🌐 migrationaffairs.com.au/contact
📞 +61 2 8226 8777
Changes to the migration program can occur without notice. The above information is not intended to be legal advice and is correct as of the date of writing this article.
Contact Migrations Affairs to speak with our immigration experts for tailored advice on the circumstances and eligibility.
