The Government has pumped the brake on initial plans to impose a salary band nearing $50,000, for migrants to stay long-term in New Zealand.

​Instead, changes to the policy would mean about 6000 more low skilled workers would be able to stay in the country longer.

Immigration Minister Michael Woodhouse said feedback during a consultation period prompted a change to lower salary band, from the original plans laid out earlier in the year.

"As a result, the remuneration band for mid-skilled will be 85 per cent of the New Zealand median income, which is currently $41,538 a year, instead of $48,859 as proposed during consultation."

READ MORE:

* Explainer: What do the Government's immigration changes mean?

* 'Callous attempt to hold power': Winston Peters calls Government's immigration crackdown a con

Any migrant earning below $41,538 a year would be considered lower-skilled and subject to a year-long stand down period, after three years of working in New Zealand.

"Any migrant earning between $41,538 and $73,299 a year in an occupation classified as Level 1 – 3 will be considered mid-skilled.

"Those earning over $73,299 a year will automatically be considered higher-skilled, regardless of their occupation," Woodhouse said.

Partners and children of lower-skilled visa holders would also have to meet visa conditions in their own right.

The rules meant applicants earning less than $41,538, would not get any points towards residency, even if their job was previously considered skilled.

Migrants earning more than $73,299 a year - one-and-a-half times the median income - would get points, even if they worked in an area not previously classified as skilled.

There were also "bonus points" on offer for anyone paid more than $97,718 a year, while there would be more points available for work experience, post-graduate degrees, and people aged between 30 and 39.

The visa changes did not apply to residency permits. They also did not apply any further restrictions on the number of places that were available each year to people wishing to live and work in New Zealand.

Instead, it was intended that salary bands and a tougher points system would raise the skill-level of foreign workers granted permits in New Zealand.

The consultation period saw 170 individuals, businesses and industry groups make submission. They overwhelmingly made three things clear, Woodhouse said.

"Visa holders need clarity about how long they're going to stay, it confirms that higher-skilled and higher-paid migrants should be able to stay longer and it certainly confirmed that Kiwis should be at the front of the queue for growing numbers of jobs."

But the salary bands did not mean people earning below the average wage, could not come in on labour market-tested work visas.

"That'll mean a few more people would have a pathway to residency if that's what they wanted."

Woodhouse rejected claims that the lowering of the mid-skilled threshold made it easier for firms to hire lower skilled workers.

"This was never about moderating the number of people coming in - the economy does that. The last thing we want to do is choke off the number of people to fill 10,000 or 11,000 new jobs that are being created.

"But I do stress, we do want to make sure that all organisations and all sectors are working hard to make sure Kiwis get those jobs," he said.

"Nobody gets to employ an overseas worker until they can demonstrate there isn't a Kiwi available to do the job - the conversation doesn't even start until that decision has been made."

NZ First leader Winston Peters said the Government's policy was "unfocused and haphazard" from the start. It applied unfairly to the regions, without addressing population growth issues in Auckland.

"What I agree with is that in the regions, until we change the Reserve Bank Act, give them back a 15 per cent greater return because we've got the settings to with exports, not imports, and downtown Queen St and foreign banks.

"Once we do that, we can stop [employers] going cold turkey and start employing New Zealanders. But in the meantime, they can't go cold-turkey."

The Government's tweak has been welcomed by Business NZ, saying the rule changes were "more workable".

Chief executive Kirk Hope said the changes struck a balance between ensuring jobs for New Zealanders and enabling businesses to access the staff they needed.

"And where there are no New Zealanders available, employers will still be able to access migrants for those jobs - both skilled and unskilled. This is helpful, as many businesses in many industries are struggling to fill job vacancies," he said.

"The revised salary threshold is more realistic for migrant workers to go from a lower-skilled role to a mid-skilled role with training and more experience, and will be more workable in the regions.

"It's also positive that the Government has taken up our calls for greater use of employer accreditation as well as looking into different sector and regional approaches according to their individual needs."

The changes would come into effect on August 28.