457 Salary requirements

Timistry

Hi all,

A bit of Background info:
Arrived in Oz in August 2010 just as the crisis deepened in Eire, after a year of applying for graduate jobs in Ireland/UK. Was in Melbourne for 5 months but had no luck. I Arrived in Perth in Feb 2011 where I found work after a month in my field (Environmental chemistry). The job was not ideal and I was willing to take anything by that stage. Was earning a pitance but was greatful for the experiance. Got sponsored just as my WHV expired, got a small pay increase after the first year. Got another small pay increase last year and won employee of the Year also so I should be very valuable to the company.

Recent events:
I applied for an internal promotion (supervisor) a few months ago but they shot me down as they said I was been promoted to a higher level anyway. Our new salary increments have just kicked in and what I was promised has not transpired yet. The more I have looked into it the worse it has become. They are only paying me the bare minimum to satisfy the 457 requirements (TSMIT)and Im being paid less than Australians in the exact same role (does my salary not have to match the equivalent for an ozzie in the same role???). I Feel like Im being exploited now but dont want to risk getting fired and lookng my sponsporship without being certain of my next course of action.

Any advice would be greatly appreciated
Thanks

mandrake04

Timistry wrote: »

Hi all,

A bit of Background info:
Arrived in Oz in August 2010 just as the crisis deepened in Eire, after a year of applying for graduate jobs in Ireland/UK. Was in Melbourne for 5 months but had no luck. I Arrived in Perth in Feb 2011 where I found work after a month in my field (Environmental chemistry). The job was not ideal and I was willing to take anything by that stage. Was earning a pitance but was greatful for the experiance. Got sponsored just as my WHV expired, got a small pay increase after the first year. Got another small pay increase last year and won employee of the Year also so I should be very valuable to the company.

Recent events:
I applied for an internal promotion (supervisor) a few months ago but they shot me down as they said I was been promoted to a higher level anyway. Our new salary increments have just kicked in and what I was promised has not transpired yet. The more I have looked into it the worse it has become. They are only paying me the bare minimum to satisfy the 457 requirements (TSMIT)and Im being paid less than Australians in the exact same role (does my salary not have to match the equivalent for an ozzie in the same role???). I Feel like Im being exploited now but dont want to risk getting fired and lookng my sponsporship without being certain of my next course of action.

Any advice would be greatly appreciated
Thanks

Technically your employer is in breach of their obligations as they should pay you the same as an Australian worker plus the 1-2% training benchmark premium on top. You should contact fair work and look for a new sponsor who is willing to pay the going rate.

Hasmunch

mandrake04 wrote: »

Technically your employer is in breach of their obligations as they should pay you the same as an Australian worker plus the 1-2% training benchmark premium on top. You should contact fair work and look for a new sponsor who is willing to pay the going rate.

+1 on this.
You should be getting paid the same as everyone else (Australians with same qualification and experience)

Timistry

I have never heard of this 1-2% training benchmark premium before. Do you have any more info on this? And how do I go about confronting my boss about this issue. Other people's salary is private information and I cant use this as leverage in a negotiation (I know ball park figures of what the others are earning). The two others are older than I but we started in our new roles on the same date and have the exact same level of responsibility.

mandrake04

Timistry wrote: »

I have never heard of this 1-2% training benchmark premium before. Do you have any more info on this? And how do I go about confronting my boss about this issue. Other people's salary is private information and I cant use this as leverage in a negotiation (I know ball park figures of what the others are earning). The two others are older than I but we started in our new roles on the same date and have the exact same level of responsibility.

I think you are jumping the gun there.

Training benchmark is what the company has to pay to train Permanent residents, you don't get it.

If for example you are doing job X and they are paying a Permanent resident $70K then you should be also paid $70K.

The 1% benchmark is 1% of the employers total payroll, so if example the company annual payroll was $2 million then the employer has to spend $20,000 on training PRs. If they don't have a track record of training then the have to donate 2% to a training fund like a TAFE. You don't get it you only get $70K. The benchmark was not strictly enforced until 1st July.

But if your employer is only paying the minimum TSMIT then they are in breach of their obligations, you knowingly accepting lower wages to get a visa you also would be breaching your obligations. It's in your best interest to report it before DIAC inspectors find out.

ifeelill

mandrake04 wrote: »

But if your employer is only paying the minimum TSMIT then they are in breach of their obligations,

Help me understand this a bit better what is TSMIT ?

mandrake04

ifeelill wrote: »

Help me understand this a bit better what is TSMIT ?

TSMIT is minimum salary threshold that a 457 occupation can be paid ...currently $53,900. Although this is not necessarily the Market rate of the occupation it's only the lowest allowable salary.

ifeelill

mandrake04 wrote: »

TSMIT is minimum salary threshold that a 457 occupation can be paid ...currently $53,900. Although this is not necessarily the Market rate of the occupation it's only the lowest allowable salary.

So the employer must pay the OP the market rate and if the market rate falls below the sum of $53,900 the employer must increase the wage of the employee on a 457 visa to at least the sum of $53,900 ?

Mellor

mandrake04 wrote: »

But if your employer is only paying the minimum TSMIT then they are in breach of their obligations, you knowingly accepting lower wages to get a visa you also would be breaching your obligations. It's in your best interest to report it before DIAC inspectors find out.

How do TSMIT increases affect existing visas.

Eg.
Say somebody like the OP who applied in 2011. TSMIT was 50k (there abouts). Nomination and 457 application was based around a salary of 52k. The visa grant would have said something like "Minimum Guaranteed Earnings of Primary Applicant: $52000"

Are their obligations to increase his salary when the TSMIT surpasses it?

ifeelill wrote: »

So the employer must pay the OP the market rate and if the market rate falls below the sum of $53,900 the employer must increase the wage of the employee on a 457 visa to at least the sum of $53,900 ?

If the salary is less that the TMSIT, the visa won't be granted.

mandrake04

Mellor wrote: »

How do TSMIT increases affect existing visas.

Eg.
Say somebody like the OP who applied in 2011. TSMIT was 50k (there abouts). Nomination and 457 application was based around a salary of 52k. The visa grant would have said something like "Minimum Guaranteed Earnings of Primary Applicant: $52000"

Are their obligations to increase his salary when the TSMIT surpasses it?

There's two pay stipulations associated with 457 TSMIT and Market rate, there is a big difference.

The TSMIT is set at time of nomination, it doesn't change as its fixed at time of grant. The problem is the Market rate of the occupation might be $70k but as often happens someone desperately looking sponsored maybe in an attempt to lead to PR where they otherwise wouldn't have a hope of getting will accept a lower wage sometimes as low as the TSMIT which is the minimum.

Fair work inspectors now have the power to check employers records of Local employee v 457 employees doing the same duties. DIAC know that some people had being touting for sponsorship by selling themselves cheap, DIAC can end an Employers SBS for doing this.... The employee is then out of a job.