Business conditions change, and so does pay. Employers who sponsor overseas workers, for example, on the Skills in Demand (SID) (Subclass 482) visa, often ask whether they can change a sponsored employee's salary. The answer depends on the direction of the change. A pay rise is usually straightforward. A pay cut is much riskier. In both cases, the change must still comply with your sponsorship obligations.

Increasing a Sponsored Employee's Salary

You can generally increase a sponsored employee's salary without lodging a new nomination or visa application. A pay rise is often a good sign for the employee's visa pathway. Keep these points in mind:

The salary should never fall below the nominated salary, and it must continue to meet the market salary and income threshold requirements.
If the raise comes with a promotion or a different role, the new duties must still fit the nominated occupation. A significant change in duties may require a new nomination, and possibly a new visa.
Keep a signed variation letter, updated payslips and bank records.
Pay should stay consistent with what you pay Australian workers in comparable roles.

Decreasing a Sponsored Employee's Salary

A pay cut can put both the business and the employee at risk. Generally, you should not reduce a sponsored employee's pay below the following:

The salary stated in the nomination;
The market salary rate for the role, and the income threshold that applies to the visa; and
Any minimum required by the applicable award, enterprise agreement or the Fair Work Act 2009.

Reducing pay below these levels can breach your sponsorship obligations. It may also breach employment law, and the employee's consent does not cure that. The consequences for the business can include:

Sanctions, such as a formal warning or a bar on future nominations;
Cancellation of the sponsorship approval; and
Civil penalties and Fair Work back-pay claims.

For the employee, breaching visa conditions may lead to visa cancellation.

Other Pay Changes to Watch

Pay can be reduced in ways other than cutting the base salary. These changes can also raise compliance problems:

Moving a full-time employee to part-time can drop earnings below the required level.
Extended periods of unpaid leave may affect compliance.
Do not recover costs the sponsor must bear, such as professional lawyer fees, nomination fees or the Skilling Australia Fund (SAF) levy, by deducting them from salary or asking the employee to repay them.
Make sure the cash salary is still compliant if the employee takes part of their pay in non-cash benefits.

Changes	Generally Allowed?	Key Risks
Pay rise, same role	Usually yes	Keep records and stay consistent with Australian workers
Pay rise with promotion or new duties	Possibly	Duties must still match the nominated occupation, or a new nomination may be required
Cut to nominated salary or lower	Generally no and needs advice	Breach of sponsorship obligations
Cut that stays above all required minimums	Needs advice	Employment law, award and visa conditions all apply
Reduced hours or unpaid leave	Needs advice	Earnings may fall below the required level

Best Practice for Employers

Review salary changes against the nomination and the current thresholds before you act.
Put every change in writing, and keep the record for the period required.
Review your obligations when a role changes, the business restructures or an employee's hours change.
Ask whether you need to notify the Department of any change to your sponsored employee's employment.
Get advice before you reduce pay or make any change that is not a clear improvement.

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

If you plan to change a sponsored worker's salary package and are unsure how it would impact your employee, contact our team of immigration lawyers at Agape Henry Crux for tailored, professional advice and a visa strategy to ensure you stay compliant. The team works closely with two of our Accredited Specialists in Immigration Law who specialise in complex visa matters. We recommend booking a Migration Planning Session by calling 02 8310 5230 or emailing info@ahclawyers.com to arrange a time.

We speak fluent English and Mandarin. If this isn’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards and in the 2027 edition of The Best Law Firms™ - Australia.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

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