New Zealand will place firm limits on how much employers can deduct from the wages of foreign seasonal workers for accommodation, following concerns about rising housing costs under the Recognised Seasonal Employer (RSE) scheme.
New Zealand Immigration said the new framework will take effect from April 2026 and will cap weekly rent deductions at between NZD $150 and NZD $211, depending on the standard of accommodation provided.
Weekly rent caps introduced
Under the new structure, weekly rent caps will range from NZD $150 to NZD $211. The cap applied will depend on how accommodation is assessed against set criteria. Employers will not be permitted to charge above the applicable cap.
The Ministry of Business, Innovation and Employment considered factors including the cost of providing RSE accommodation, market values of comparable accommodation, housing affordability measures, and trends in RSE accommodation pricing when determining the caps.
Rent caps will be updated annually to reflect inflation.
How accommodation will be assessed
Accommodation will be assessed using defined characteristics that affect the maximum rent allowed. These include:
The number of workers sharing a bedroom, age of the building, and the location, type, and access to bathroom facilities. Each characteristic contributes to the overall assessment of the accommodation. Higher assessed standards allow for higher rent caps, while lower assessed standards result in lower caps.
Assessment criteria will be published to allow employers and workers to understand how accommodation is classified and how rent limits are calculated.
Limits on cost recovery
Employers will only be permitted to recover the actual cost of providing accommodation. Charges must be reasonable and directly related to the accommodation supplied to workers.
The framework does not allow employers to make a profit from accommodation charges. It sets maximum limits rather than fixed prices.
Employers must continue to comply with employment law, including the Minimum Wage Act and the Wages Protection Act. Responsibility remains with employers to ensure that accommodation deductions from wages are lawful and that workers receive at least the minimum wage after deductions.
Application and future review
The new framework will apply to Agreement to Recruit applications lodged with the RSE Processing Team from April 2026. Arrangements already in place will continue until that date.
The changes form part of ongoing work to maintain the RSE scheme. Accommodation quality standards will be considered further as part of a wider RSE policy review scheduled for 2026.
Further information and guidance on the new accommodation framework is available on the “Providing accommodation for RSE workers” page published by New Zealand Immigration.
What To Know:
For foreign workers in the Recognised Seasonal Employer scheme, the changes mean clearer and more limited accommodation costs from April 2026. Employers will not be able to charge more than the set weekly rent caps, which range from NZD $150 to NZD $211 depending on the type and standard of accommodation.
Rent must be based on published assessment criteria, such as room sharing and bathroom access, so workers can understand how charges are set.
Employers will only be allowed to recover the actual cost of providing accommodation and must continue to comply with minimum wage and wage deduction laws. The changes apply only to RSE workers and are intended to ensure housing costs are consistent and lawful while workers are employed in New Zealand.
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