If your business is sponsoring an overseas worker for an Australian visa, you must show that you will pay them at least the same as an Australian in the same role and location. This is called the Annual Market Salary Rate (AMSR).
Getting the AMSR wrong is one of the most common reasons employer nominations are refused, even when the position is genuine and the worker is highly skilled. This guide will walk you through how to calculate the AMSR, what evidence you need, and how to avoid mistakes that could cost your business time and money.
Why the AMSR Matters for Your Business
The Department of Home Affairs (DOHA) uses the AMSR to ensure:
- Overseas workers are not underpaid compared to Australian employees.
- Australian jobs are protected from wage undercutting.
- The integrity of the migration programme is maintained.
For employers, this means your nomination will only be approved if your proposed salary matches or exceeds the AMSR for that role.
Step 1: If You Have an Equivalent Australian Worker
If your business already employs an Australian citizen or permanent resident in the same role and location, the AMSR is the salary you pay that worker.
You will need to provide:
Fair Work Commission agreement or award name
This is the award or enterprise agreement covering that applies to the nominated employee’s role.
Salary level or occupation group
The salary level or occupation group, such as Level 4 under the Hospitality Industry (General) Award, specifies the correct classification and pay scale for the position.
Supporting documents
You must also provide supporting documents, including recent payslips and the employee’s signed employment contract, to confirm the salary being paid.
This is the simplest way to establish AMSR, as it reflects what you already pay for the role in your workplace.
Step 2: If There Is No Equivalent Australian Worker but an Award Applies
If your business does not have a comparable Australian employee, but the role is covered by a Fair Work Commission award or registered agreement, you must:
- Identify the correct award or agreement name.
- Confirm the salary level or occupation group that applies.
The AMSR will be based on the pay rates set in that award or agreement.
Step 3: If No Equivalent Worker, Award, or Agreement Exists
If there is no award, agreement, or equivalent worker in your business, you must calculate the AMSR using at least two reliable sources from the list below:
- Jobs and Skills Australia occupation profiles
The Jobs and Skills Australia occupation profiles provide official government data on roles, duties, and typical pay rates.
- Recent job advertisements
You may also use recent job advertisements from the past six months that show the salary for similar roles in the same location.
- Independent remuneration surveys
Independent remuneration surveys from reputable salary benchmarking providers can be used to demonstrate market pay rates.
- Written advice
Finally, written advice from relevant unions or employer associations can help confirm the appropriate salary for the position.
Mistakes Employers Must Avoid
The DOHA may refuse your nomination if you:
- Offer a salary below what an Australian worker earns for the same role.
- Use outdated or generic salary data.
- Fail to provide clear supporting evidence for your AMSR calculation.
- Count non-monetary benefits (e.g., meals, accommodation) toward the AMSR. Please note that only monetary wages count.
Preparing an AMSR can be tricky and, in some cases, quite complex, especially when awards, agreements, or market data are unclear. To ensure your AMSR is calculated accurately, supported with the right evidence, and meets DOHA’s requirements, it is best to seek help from experts. At SALIA Lawyers & Associates, we have the experience to guide you through the process, helping you avoid costly nomination refusals and delays. Contact us today to get it right the first time.
