A New Pathway to Residence for Skilled Trades and Technicians

In September 2025, Immigration New Zealand (INZ) announced significant changes to the Skilled Migrant Category (SMC) that will take effect from late August 2026.

These changes include the creation of a new Trades and Technician pathway to residence. This pathway aims to address long-standing labour shortages across a range of industries and better recognise practical skills in roles for which experience may be more significant than formal qualifications. 

For many migrants already working in trades and technical roles, this marks a meaningful shift in New Zealand’s immigration policy, as it provides a clearer and more realistic route to New Zealand residence than has previously been available for those without formal qualifications.

Why these changes are significant

Under the current system, many skilled tradespeople have struggled to meet residence requirements, which often favour academic qualifications or higher salary thresholds.

The new pathway reflects a change in policy direction:

•  Greater recognition of hands-on skills and experience

•  Reduced reliance on degree-level qualifications

•  Wage thresholds which are more aligned with trade roles

•  A focus on helping employers retain experienced workers already in New Zealand

Immigration New Zealand has acknowledged that many workers in these roles did not previously have a realistic pathway to residence, despite filling important skills gaps in the labour market. This shift will provide them with the benefit of an avenue to remain in New Zealand on a long-term basis.

The ability to retain skilled workers who are already in these roles on a permanent basis is also of benefit to New Zealand business owners, as it may provide more continuity of staff and a better return on the investment required to employ migrant workers (e.g. ongoing costs of accreditation, completing job checks, and any applicable relocation costs).

The Trades and Technician pathway

The new pathway will sit within the Skilled Migrant Category and will apply to migrants working in specified trade and technician roles (these are generally within ANZSCO skill levels 1–3).

While many aspects of the policy’s details are still being finalised, the announced requirements include:

 •    Employment in an eligible occupation

Applicants must work in a role included on the Trades and Technician occupation list (this is yet to be finalised).

•     Relevant qualification

Applicants must have a Level 4 or higher qualification (or equivalent)

•     Work experience

Applicants must have at least 4 years’ of directly relevant post-qualification work experience.

•     New Zealand experience

Applicants must have at least 1.5 years’ (18 months) of skilled work experience in New Zealand, paid at or above the median wage.

•     Standard residence requirements

Health, character, and English language requirements will continue to apply.

The adoption of the median wage threshold, rather than a higher wage threshold, is a particularly important aspect of these changes: it reflects the reality of the wages provided to many skilled trade workers and makes residence more achievable.

Who is likely to benefit?

This pathway is expected to benefit a wide range of workers, particularly those in:

•  Construction and infrastructure

•  Engineering and mechanical trades

•  Automotive and electrical trades

•  Technical and specialist service roles

It is especially significant for individuals who:

•  Hold trade qualifications rather than university degrees

•  Have built their careers through practical, hands-on, experience

•  Are already working in New Zealand but have struggled to meet previous residence criteria

The pathway also benefits New Zealand employers and the New Zealand public generally by keeping skilled and experienced workers here in integral roles which could otherwise be difficult to fill from our domestic labour market.

Interaction with other pathways

The Trades and Technician pathway is part of a broader set of SMC reforms. Alongside it, Immigration New Zealand is introducing:

•  A Skilled Work Experience pathway for individuals with substantial experience but without formal qualifications; and

•  Red and Amber occupation lists, which may limit access to some pathways depending on the occupation.

The existing Skilled Migrant Category (including the points-based system) will remain in place, meaning applicants may still have multiple potential routes to residence depending on their circumstances.

Timing and next steps

The new pathways are expected to come into force from late August 2026, with the final operational policy and occupation lists still being confirmed.

For migrants and employers, this is a valuable opportunity to prepare:

•  Ensure job descriptions accurately reflect skilled roles

•  Review qualification evidence and work history

•  Check whether roles are likely to fall within the eligible occupation list

•  Consider whether current visa holders will meet New Zealand work experience requirements by the time the pathway opens

Consider whether potential applicants (and any family members who may be included in their application) meet the remaining requirements for residence class visas (including health, character and English language requirements).

How McMillan&Co. can help

These changes are complex and still evolving. Early advice can make a significant difference in positioning your application for success.

Our experienced team of Immigration lawyers at McMillan&Co. can assist you with:

•  Assessing eligibility under the new pathways

•  Advising on timing and strategic options

•  Reviewing employment arrangements and documentation

•  Preparing residence applications when the pathways open

By understanding your circumstances from the beginning, we can identify potential risks in your visa application before they escalate and assist you to prepare a clear and accurate application.

If you are an employer seeking to retain skilled staff, or a migrant planning your pathway to residence, we recommend getting advice early to ensure you are ready to take advantage of these new opportunities.

This article is intended as general information only and does not constitute legal advice. Please contact us for advice tailored to your circumstances.

Emily Robertson, Senior Solicitor
emily@mcmillanco.nz