On 14 September 2009, the Department implemented major changes to the 457 visa program. Sponsors must ensure that the terms and conditions of employment for overseas workers are equivalent to Australian employees. This means that overseas workers must be paid market salary rates.

A transitional arrangement applied between 14 September 2009 and 31 December 2009 that allowed sponsors of 457 visa holders, who had obtained visas prior to 14 September 2009, to continue to be paid at the minimum salary levels applicable prior to the implementation of marker rate salaries.

However, from 1 January 2010, sponsors must pay 457 visa holders the market salary rate unless it is less than the applicable prescribed minimum salary level. In other words, sponsors must pay 457 visa holders the greater of either the market salary rate or the prescribed minimum salary level for the duration of their visa.

There are five prescribed minimum salary levels:

• $81 040 for Subclass 457 visa holders who benefited from the English language exemption
• $55 725 for Subclass 457 visa holders working in Information and Communication Technology (ICT) occupations who were granted their visa  under certified regional employment arrangements
• $61 920 for all other Subclass 457 visa holders working in ICT occupations
• $40 705 for all other Subclass 457 visa holders who were granted visas under certified regional employment arrangements
• $45 220 for all other Subclass 457 visa holders.

For more information click here.

For information specific to employees in the Information and Communication Technologies sector click here.