New SMC Pathways Announced: How They’ll Benefit Migrants and NZ Businesses

This article summarises Government announcements; detailed rules will follow closer to implementation.

Quick summary

The Government has announced two new residence pathways to sit alongside the existing Skilled Migrant Category (SMC), targeted to open from mid-2026. They’re designed to help employers retain proven talent already working here and to recognise trades and technician skills more fairly. Headline settings so far:

  • Skilled Work Experience pathway: at least 5 years directly relevant skilled experience, including **2 years in NZ paid ≥ 1.1 × median wage.

  • Trades & Technician pathway: specified occupations; Level 4+ qualification; 4+ years post-qualification skilled experience, including 18 months in NZ paid ≥ median wage.

  • Government also signalled reduced NZ work time for NZ-university graduates to gain residence (details pending).

Immigration New Zealand has confirmed that two new SMC pathways are coming and that full criteria will publish closer to mid-2026.

What problems do these pathways solve?

1) Retention: stopping the “temporary churn”

Under today’s SMC, some valuable workers struggle to convert to residence despite years of contribution. The Skilled Work Experience pathway explicitly rewards proven performance in NZ at a strong wage level, giving employers a realistic way to keep experienced staff long-term. That reduces turnover costs, protects client relationships, and stabilises project delivery.

2) Fair recognition for trades and technicians

Many critical roles rely on sub-degree qualifications and hands-on skill. The Trades & Technician pathway recognises this reality and ties eligibility to a Level 4+ qualification plus NZ experience at or above median wage, aligning immigration settings with how these industries actually measure competence. Expect gains in construction, infrastructure, automotive, manufacturing, and other shortage areas.

3) A clearer incentive for NZ study

The Government intends to shorten the work-time requirement for NZ university graduates before residence—encouraging international students to study here and stay to contribute after graduating. That’s good for universities, regions, and employers seeking “job-ready” grads. Details to come.

What this means for migrants

  • Pathways built around your real career: If you’ve built 5+ years in a skilled occupation (with 2 years in NZ at ≥1.1× median), you could have a clearer route to residence—even if your occupation didn’t fit neatly into earlier SMC points settings.

  • Trades finally centred: If you hold a Level 4+ trade/technical qualification and can show 4+ years post-qual experience (including 18 months in NZ at ≥ median), you’ll have a tailored residence pathway.

  • Plan ahead with pay rates: These pathways reference median-wage thresholds. Check current SMC pay-rate tables and keep an eye on annual updates.

  • Timeline: Target opening mid-2026. Use the time to consolidate NZ experience, keep pay above the required thresholds, and ensure your qualification evidence (and any registration, if relevant) is in order.

What this means for employers

  • Retention tool for proven performers: If you’re paying at/above the specified thresholds and your migrant employee has built NZ tenure, the Skilled Work Experience pathway offers a credible residence route—lowering risk of losing them to offshore opportunities.

  • Trades & technicians unlocked: The new pathway aligns with industry norms (Level 4+, hands-on experience). Expect smoother workforce planning and less reliance on repeat temporary visas.

  • Better pipeline from NZ universities: With reduced work-time to residence for NZ grads (details pending), you can more confidently hire and invest in emerging talent.

How these pathways fit with the existing SMC

Today’s SMC remains the core skilled-residence route (EOI/ITA model with qualification/registration and pay-rate settings). The new pathways add flexibility: instead of relying solely on points proxies, they recognise NZ work tenure, wage level, and trade qualifications—especially valuable where experience demonstrates skill more effectively than degree-based points.

Practical next steps (migrants & employers)

Migrants

  1. Audit your timeline to mid-2026: tally total skilled years, NZ months, and wage level. Keep payslips/contracts ready.

  2. Validate your qualification (Level 4+ for trades/technicians) and gather post-qualification evidence.

  3. Track median-wage updates (they typically adjust annually). Aim to meet or exceed the threshold early.

Employers

  1. Map key staff against the new criteria (experience, NZ tenure, wage).

  2. Adjust remuneration where feasible to meet the ≥ median or ≥1.1× median triggers.

  3. Update job descriptions to accurately reflect skill level and relevancy—this will matter for “directly relevant experience” assessments.

  4. Retention planning: align reviews and contracts so eligible employees can transition smoothly once the pathways open.

Known unknowns (as at 23 Sept 2025)

  • Eligible occupations list & any extra restrictions (especially for the Trades & Technician pathway) will be released before opening in mid-2026.

  • Exact work-time reduction for NZ university graduates is not yet specified.

Aspiring Immigration will update this guide once INZ publishes final instructions.

FAQs

When do the new pathways start?
The Government’s target is mid-2026. Prepare documentation now to avoid a last-minute rush.

Will my occupation be eligible under the Trades & Technician pathway?
A specified list will be published. If you’re in construction, infrastructure, automotive, electrical, mechanical or similar, watch closely.

Do current SMC pay rates still matter?
Yes. Median-wage-linked thresholds continue to underpin skilled residence. Monitor INZ’s pay-rate tables for updates.

Sources & further reading

  • Official announcement (Beehive.govt.nz) — outlines the two pathways, wage and tenure signals, and timing (mid-2026) plus reduced work time for NZ grads.

  • INZ news centre — confirms two new SMC pathways with more detail to come closer to opening.

  • Context — national coverage of the policy intent and sector reactions.

  • Current SMC pay-rate tables — keep an eye on median-wage updates.

How Tatiana Elvery at Aspiring Immigration can help

As a Licensed Immigration Adviser (IAA 202101015) with a background in finance and HR, I provide:

  • Eligibility audits against the new criteria (experience, NZ tenure, wage).

  • Retention strategies for employers (remuneration benchmarking, documentation readiness, and visa sequencing).

  • Qualification checks and evidence curation (contracts, payslips, references, registration where needed).

  • Application preparation the moment instructions go live.

👉 Book a consultation to map your pathway and timelines so you’re ready when applications open.

Disclaimer: This article is for general information only and is not legal advice. Immigration policy can change; rely on the final INZ Operational Manual once published.

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