New 2026 Residence Pathways: What the Upcoming Skilled Migrant Changes Mean for Trade and Technical Workers

After years of limited residence opportunities for many trade and technical workers, major changes are now on the horizon.

New Skilled Migrant Category (SMC) settings scheduled for 2026 will introduce new pathways to residence, including options for:

• Skilled workers without formal qualifications

• Trade and technical workers with Level 4 or higher qualifications

• International graduates with New Zealand qualifications

These reforms are designed to widen access to residence for workers who are already contributing to New Zealand’s workforce but have historically been blocked by qualification-based thresholds.

More detailed Immigration Instructions are expected to be released next year, with the new framework set to take effect from August 2026.

Key SMC Changes Planned for 2026

Under the announced SMC framework, the following residence pathways are expected to become available:

1. Skilled Workers Without Formal Qualifications

You may become eligible for residence if you:

• Hold a skilled job in New Zealand (ANZSCO Levels 1–3)

• Have 5 years of relevant work experience, with at least 2 years completed in New Zealand

• Are paid at least 1.1 times the median wage

This pathway is significant because it removes the historical requirement for formal qualifications for certain skilled workers.

2. Trade and Technical Workers With Level 4 Qualifications

Trade and technical workers may become eligible if they:

• Hold a relevant Level 4 or higher qualification

• Have at least 4 years of post-qualification relevant work experience

• Have completed at least 18 months of this work in New Zealand

• Are paid at or above the median wage

• Work in an occupation appearing on the approved trade and technical occupation list (to be released)

This creates a dedicated residence pathway for hands-on technical workers who meet experience and income thresholds.

3. Stronger Residence Pathways for International Graduates

Increased SMC points will be available for those completing:

• New Zealand Master’s degrees

• Bachelor’s degrees

• Honours degrees

• Postgraduate diplomas

• Postgraduate certificates

This will open clearer residence pathways for international students who secure skilled employment after study.

Important: Anyone claiming residence points for a postgraduate diploma or postgraduate certificate must already hold an undergraduate degree.

New Occupational Controls: Red List and Amber List

Two new occupation control lists will also be introduced:

• Red List – Occupations that will be excluded from accessing the main residence pathways above

• Amber List – Occupations that may access the skilled worker pathway, but with additional eligibility requirements, and will be excluded from the trade/technical stream

At this stage:

• No occupations have yet been announced for either list

• Further announcements are expected during 2026

Ongoing Core Residence Requirements Still Apply

Even under the updated SMC system, applicants will still need to meet all standard requirements, including:

• Holding skilled employment in New Zealand (or a skilled job offer)

• Meeting English language requirements

• Meeting health and character requirements

These core eligibility standards are not changing.

Wage Thresholds: What You Should Know

As of now:

• The current median wage is NZD $33.56 per hour

• 1.1 times the median wage is NZD $36.92 per hour

These wage thresholds are expected to increase by 2026, meaning future residence eligibility thresholds may also rise.

What This Means for Migrant Workers and Their Families

From August 2026, migrant workers and families who have previously been shut out of residence due to qualification rules may finally have a realistic residence option - provided they meet:

• Skill level

• Work experience

• Income thresholds

• Occupational eligibility

More detailed immigration instructions will be released by Immigration New Zealand over the coming year.

If Your Work Visa Expires Before 2026

If your current visa expires before August or September 2026, your immigration strategy needs to be carefully managed. Bridging visas, job changes, wage thresholds, and occupational classification will all play a critical role in keeping you on track for residence under the new system.

Act Early to Protect Your Residence Options

If these changes are relevant to your situation—or your work visa is nearing expiry - early planning is critical. Immigration settings, wage thresholds, and eligible occupations will all shape who benefits most from the 2026 changes.

Speaking with a licensed immigration adviser early can help you:

• Map your eligibility under the new SMC framework

• Align your job, wages, and experience with residence thresholds

• Avoid gaps that could block your future residence pathway

Disclaimer: This article provides general immigration information only and does not constitute legal advice. Immigration instructions, wage thresholds, and occupational lists may change before implementation in 2026. Always seek personalised advice before making visa or residence decisions.