Minimum Salary Level - 457 Visa Australian Work Permit Program
The minimum gross annual salary for most occupations is $47,480 plus superannuation based on a 38-hour week. If your employee works more than 38 hours per week the minimum salary will increase. Employees may be provided with other benefits but these will not count towards the calculation of remuneration for the purposes of the minimum salary level.
The 457 minimum salary level must not include:
- accommodation or rental assistance, board, upkeep, meals or entertainment
- incentives, bonuses or commissions
- shares or bonus shares, travel, holidays, health care insurance
- vehicles or vehicle allowances, communications packages (exceptions below*)
- Living-Away-from-Home-Allowance (exceptions below*)
- superannuation contributions (either voluntary employee or compulsory employer contributions)
Exempt deductions such as Pay As You Go (PAYG) taxation; and any amount that would be 100% tax deductible (for the person) or otherwise exempt from Fringe Benefits Tax (FBT). Some communications packages for example are 100% tax deductible.
Any other non-salary benefits not included in the above, with the exception of Medicare benefits received as a fee for service by medical practitioners.
Sponsors are also required to pay market salary rates AND the market salary rate must not be less than A$47,480 per annum. This means that you must ensure that the terms and conditions of employment provided to primary Subclass 457 visa holders are no less favourable than the terms and conditions you provide, or would provide, to Australians to perform equivalent work in your workplace at the same location.
If there is an Australian performing equivalent work in the same workplace, then this means that the terms and conditions of employment provided to the Subclass 457 visa holder must be similar to the terms and conditions that apply to the equivalent Australian working in your business.
If there is no Australian performing equivalent work in the same workplace, there may be an industrial arrangement (such as a collective agreement or award) that applies to Australians. In this case, the relevant industrial arrangement could be applied to the Subclass 457 visa holder.
If there is no Australian performing equivalent work in the same workplace, and no relevant industrial arrangement in operation at the workplace, we will help identify the market terms and conditions of employment supported by a range of evidence such as the Australian Bureau of Statistics' Employee Earnings and Hours Survey, Australian Government's Job Outlook, various remuneration surveys and job vacancy advertisements.
