RSE Employers Alert: New Accommodation Deduction Rules Effective August 2025

Key Update for Recognised Seasonal Employers (RSEs)

As of 18 August 2025, Recognised Seasonal Employers (RSE) in New Zealand have been permitted to increase weekly accommodation costs for workers by up to 2.5%. This adjustment applies to both rent and utility charges, reflecting the rising costs of living and ensuring fairness for both employers and workers.

The updated rate is based on the March 2025 annual Consumer Price Index (CPI) increase and serves as an interim measure while a permanent policy is being developed in collaboration with industry and Pacific stakeholders.

What the 2.5% Increase Means for Employers and Workers

• Applies to all new Agreement to Recruit (ATR) approvals issued on or after 18 August 2025.

• Does not affect ATRs approved before 18 August 2025. Existing agreements remain at previous rates.

• Employers with ATR applications submitted before 18 August but still pending approval can now submit amended accommodation deduction forms to include the 2.5% increase.

All accommodation deductions must remain:

• Actual: Reflecting real costs incurred.

• Reasonable: Fair and proportionate to market conditions.

• Verifiable: Supported by clear documentation and evidence.

Previous Temporary Increase Ending Soon

The temporary accommodation increase introduced in September 2024 will expire on 1 September 2025. This recent adjustment replaces that temporary measure and aligns with ongoing government efforts to maintain fair conditions for RSE workers while supporting employer compliance.

Why This Change Matters for the RSE Scheme

The Recognised Seasonal Employer scheme remains vital for New Zealand’s horticulture and viticulture industries, providing essential labour from Pacific nations. Ensuring fair accommodation practices protects workers’ well-being and strengthens employer relationships.

This 2.5% increase, now in effect, acknowledges rising operational costs while balancing the rights of workers. It is a temporary step toward a long-term, sustainable solution for accommodation costs under the RSE scheme.

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