Author: Gerald Tang- Migration Strategist
Understanding the Annual Market Salary Rate (AMSR) amendments
The Annual Market Salary Rate (AMSR) has been updated under a new legislative instrument. These changes introduce new salary determination methods. The amendments aim to provide flexibility while maintaining salary integrity for sponsored workers. They cover employer-sponsored visa nominations across multiple visa subclasses.
This change affects how the AMSR is determined. Previously, where a business had a comparable employee and an applicable award, the award rate had to be used. Now, while the award can still be considered, businesses also have the flexibility to rely on other forms of evidence, such as market salary data, when determining the appropriate salary.
Determining the Annual Market Salary Rate (AMSR)
The AMSR is determined based on whether an equivalent Australian worker is employed in the same role. Where an equivalent worker exists, the AMSR is based on that employee’s earnings. The role must involve similar duties, at the same location and level.
If remuneration is set under an enterprise agreement or industrial award, employers must provide:
- The official name of the instrument
- The relevant classification or salary level
Where no industrial instrument applies, supporting evidence is required. This includes employment contracts and recent payslips. Generic salary surveys alone are not sufficient.
Differences in experience must also be considered, as a worker at a different level may not be a valid comparison. If the nominated salary is lower than that of an equivalent worker, the nomination will be refused.
Where no equivalent worker exists, the AMSR must be determined using market-based evidence. If an industrial instrument applies to the occupation, it must still be used as a reference point. In the absence of an applicable instrument, the AMSR must be supported by reliable data.
Employers should rely on at least two sources, such as:
- Jobs and Skills Australia data
- Recent job advertisements in the same location
- Reputable remuneration surveys
- Advice from unions or employer associations
This approach helps demonstrate that the proposed salary reflects genuine market conditions.
Visa programs impacted by the AMSR amendments
The AMSR amendments extend to nominations for:
- Skills in Demand visa (subclass 482)
- Skilled Employer Sponsored Regional visa (subclass 494)
- Employer Nomination Scheme visa (subclass 186)
- Regional Sponsored Migration Scheme visa (subclass 187)
Employers must apply the updated methodology for these visa nominations.
What employers should consider under the new AMSR rules
The AMSR changes require careful documentation and planning.
Employers should:
- Review salary benchmarking processes
- Ensure supporting documents are accurate and consistent
- Confirm alignment with industrial instruments where applicable
- Prepare evidence where no equivalent Australian worker exists
Failure to meet AMSR requirements may impact nomination approval.
Compliance and strategic considerations for AMSR
The AMSR is central to sponsorship compliance. The changes aim to introduce greater flexibility while maintaining salary integrity for sponsored workers. Employers must demonstrate that salaries reflect genuine market rates. A structured and compliant approach is essential for successful nominations.
Get in touch
For tailored advice on the Annual Market Salary Rate (AMSR) requirements and nomination strategy, contact our team of Migration Strategists at aisupport@absoluteimmigration.com.
