Key Takeaways:
- Skilled Worker visa salary thresholds in the UK increase significantly from April 2024 to better align with current earnings.
- Occupation-specific salary thresholds under Skilled Worker visas will rise, impacting eligibility; new ISL replaces the Shortage Occupation List.
- Employers must prepare for higher salary requirements, assess current employees, and consider strategic planning amid UK immigration changes.
Understanding the Skilled Worker Visa Salary Hike in the UK
The UK immigration landscape is constantly evolving, with changes directly impacting employers and overseas workers. In a significant update by the Home Office in December 2023, the minimum salary thresholds for Skilled Worker visas will see a substantial increase effective from 4 April 2024. Here’s what employers need to know to navigate these changes effectively.
What’s Changing for the Skilled Worker Visa?
Firstly, it’s crucial to grasp the essence of the upcoming adjustments. The general salary threshold for Skilled Worker visas is set to rise from £26,200, based on the 25th percentile under ONS Annual Survey of Hours and Earnings (ASHE) data from 2021, to £38,700, grounded in the 50th percentile under ONS ASHE data from 2023. This alteration is significant, as it aims to better align salaries with the current earnings landscape across various sectors.
How Will Individual Occupation Salary Thresholds Be Affected?
While the hike in the general salary threshold captures most of the attention, it’s equally important to note that going rate salary thresholds for individual occupations (excluding Health and Care worker roles) will also ascend from the 25th percentile to the 50th percentile. This adjustment is based on median full-time salary data for equivalent jobs in 2023, meaning some roles may require a minimum salary above £38,700 for Skilled Worker visa eligibility.
For instance, the minimum salary for Programmers and Software Development Professionals will jump to around £49,430 – a significant increase from the current rate.
Employers should also be aware of the switch from the SOC 2010 to SOC 2020 occupational coding system from April 2024, which will facilitate updates to going salary rates for occupations with the latest data.
What Are the Transitional Arrangements?
For those already sponsored under the Skilled Worker route before the new rules kick in, there’s a silver lining. According to the Home Office, such individuals will be exempt from the increased thresholds, allowing them to continue being sponsored at or above the current 25th percentile salary threshold.
Introducing the New Immigration Salary List (ISL)
From 4 April 2024, an interim ISL will replace the Shortage Occupation List. Notably, only 21 occupations eligible under the Skilled Worker route are recommended for inclusion. This change means that roles previously benefiting from salary threshold discounts and reduced application fees on the Shortage Occupation List might no longer enjoy these advantages.
Moreover, if a role is included on the ISL, the minimum salary payable for Skilled Worker sponsorship will be set at £30,960 (except for Health and Care Worker roles, which will have a lower threshold at £23,200), or the occupation-specific threshold, whichever is higher. The implications of this revision are far-reaching, particularly for businesses operating outside the construction and healthcare sectors, which may find the new ISL less beneficial.
Navigating the Increase in Visa Salary Threshold: What Employers Need to Do
Employers must proactively assess the impact of these changes on their workforce and recruitment strategies. For those considering hiring non-British/Irish workers to fill roles, understanding the updated salary thresholds is pivotal. Additionally, employers should consider expediting the sponsorship of eligible employees under the Skilled Worker route before the 4 April 2024 deadline to leverage current lower salary thresholds.
Planning for Employees Switching into the Skilled Worker Route
For employees on non-Skilled Worker visas considering a switch, assessing their immigration status and salaries is urgent. These individuals might find themselves ineligible for sponsorship under the new higher salary thresholds, underscoring the need for strategic planning and timely action.
Employers are advised to review their Certificate of Sponsorship in-country allocations as soon as possible. Given the potential for processing delays and heightened demand for priority service, acting swiftly is essential to navigate the upcoming changes successfully.
Positive Developments for Asylum Seekers
In a notable development, the Migration Advisory Committee (MAC) recommended allowing asylum seekers granted work permission to engage in any job eligible under the Skilled Worker route, expanding employment opportunities beyond roles on the current Shortage Occupation List. This adjustment promises to slightly enlarge the candidate pool for employers, offering a glimmer of hope amidst the recruitment challenges anticipated due to the salary threshold increases.
What’s Next?
As the new Immigration Rules are set to be published on 14 March, employers and prospective Skilled Worker visa applicants are keen to understand how these changes will unfold. The MAC’s interim ISL and related recommendations are slated for a more comprehensive review later in 2024, promising further adjustments and potential opportunities for stakeholders to voice their concerns and suggestions.
For additional information and guidance on navigating these changes, you can refer to the UK government’s official immigration page.
Conclusion
The impending salary threshold hike for the Skilled Worker visa is a pivotal change in UK immigration policy, affecting both employers and international employees. With the detailed announcement and impending rules publication, it’s imperative for businesses to strategically assess their current and future workforce needs against the backdrop of these changes. Understanding the nuances of the new salary thresholds, transitional arrangements, and the ISL is crucial for navigating the complexities of UK immigration and safeguarding the interests of both employers and overseas workers in this shifting landscape.
This Article In A Nutshell:
The UK is increasing the Skilled Worker visa salary thresholds, impacting both employers and employees. From April 4, 2024, minimum wage requirements will significantly rise. The new Immigration Salary List will replace the Shortage Occupations List, altering sponsorship eligibility. Employers must prepare for these changes by understanding and adapting to the revised regulations promptly.
