457 Visa changes

Changes to Minimum Salary Levels for 457 Visas holders

On 1st August 2008 The Rudd Government increased the Minimum Salary Level (MSL) for temporary skilled overseas workers by 3.8 per cent. The increase applies to new temporary skilled migrants entering Australia to work on a Temporary Entry Long Stay Business Visa (subclass 457) and those already in the workforce who currently hold a Temporary Entry Long Stay Business Visa (subclass 457).

The increases are only relevant to specific workers. Employers and employees should go to http://www.immi.gov.au/skilled/skilled-workers/ens/eligibility-employer.htm for further information. Existing ENS visa holders, as well as employer nominations for positions lodged before August 1, will not be affected by the MSL increase.

The Minister for Immigration and Citizenship Senator Evans has implemented integrity review process following concerns regarding the exploitation of migrant workers, salary levels and English language requirements within the temporary skilled migration program. Senator Evans stated 'We need to protect migrant workers from exploitation and ensure the wages and conditions of Australian workers are not undercut.' 'Penalties may range from $6,600 for an individual up to $33,000 for a corporation.

The change has increased the current standard MSL from $41,850 to $43,440 per annum. For ICT professionals, the MSL rose from $57,300 to $59,480. If an industrial instrument, such as an award, common law agreement or current AWA prescribes a level of salary that is higher than the MSL, then this is the salary that must be paid.

The minimum salary level for occupations that are eligible for the Employer Nomination Scheme (ENS) was increased by 3.8 per cent on 1st August 2008. The ENS is the accepted pathway to permanent residence for skilled workers employed in Australia on a temporary basis, such as 457 visa holders.

Changes to the 457 Visa MSL

Previous to 1 August From 1 August

NON ICT $41,850 $43,440

NON ICT Regional $37,665 $39,100

ICT $51,570 $53,530

ICT Regional $57,300 $59,480


The reason for the higher MSL for ICT professionals was the dot-com crash in 2001, which led to a significant increase in the number of ICT professional in Australian joining the list of unemployed. While this did not discourage employers from filling gaps in higher-end ICT positions it did assist the lower end of the market. DEEWR (Department of Education Employment and Workplace Relations) current list still reflects a shortage of ICT professional in certain areas.

The MSL three main objectives are:

1. To provide a price indicator to employers recruiting overseas skilled workers, drawing attention to instances where it may be advantageous to train and employ Australians first, realising that there maybe other costs associated with overseas employees.

2. Protect employees from employers who may be inflating the skills requirement of positions, so that the positions appear to require a skill beyond what is actually the case.

3. Provide overseas workers who do not have access to the same level of government services as Australians (while they may access industrial relations protections they do not have access to social security) with the same standard of living as commensurate with the broader community of Australian citizens.