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Market salary rate 457 and RSMS visa.

What is market salary rate and how much you have to pay your employees. There are 3 components of wage structure fro 457 visa and 2 components for RSMS visa.

457 visa applicants  must be paid:

  • at market salary rate. The market rate depends on the occupation and location where employment will be performed. Evidence of market salary rate must be provided unless the base salary is over $250,000.
  • above current TSMIT
  • According to industrial award.

RSMS  visa applicants  must be paid:

  • at market salary rate. The market rate depends on the occupation and location where employment will be performed.
  • According to industrial award.

Calculation of Market Rate

If the salary level is below $250,000, employers must provide evidence that the salary is in accordance with market rates for the position.

The applicable rate will depend on whether there is an Australian working in an equivalent position in the same location. Reference can be made to what the salary level is in other workplaces (ie competitors) operating in the same location or organisation.

If there is no Australian working in a similar position in the location, then the following will need to be taken into consideration in assessing the market rate:

  • Applicable industrial awards
  • Local knowledge sourced from unions or employer associations
  • Earnings data published by the ABS or market surveys
  • Recent job ads for equivalent positions

Pacific Center Immigration Agency provide help to employers with preparation suitable market salary rate.

Salary Threshold for Market Salary Rate Assessment Exemption

For employees to be paid above $250,000, no evidence is required to establish that the employee is being paid at the market rate.

Temporary Skilled Migration Income Threshold (TSMIT)

For a nomination to be approved, the base salary must be at least equal to the TSMIT (Temporary Skilled Migration Income Threshold) – currently $53,900.

If the market rate for the occupation is less than the TSMIT, then the nomination will not be approved even if the salary offered is higher than the TSMIT. This is intended to stop employers artificially “inflating” salaries for positions requiring a lower level of skill.