Increase in Skilled Worker Visa Minimum Salary Threshold
The UK government has raised the minimum salary requirements for workers applying for the skilled worker visa, starting April 4, 2024. The new minimum salary will be £38,700, up from £26,200. This change was confirmed in a recent announcement.
In December, Home Secretary James Cleverly explained these changes in Parliament. He said that people applying for work visas must now earn at least £38,700, which is much higher than the previous £26,000. The government’s goal is to reduce annual immigration by 300,000 in the future, but they haven’t given a specific timeline for this.
The government also plans to get rid of the option for employers to pay workers in shortage occupations 20% less than the usual rate.
Changes in Standard Pay Rates
Currently, the yearly pay rates for each job type are based on the 25th percentile of the Office for National Statistics (ONS) Annual Survey Hours and Earnings (ASHE) for 2021.
Starting April 4, 2024, the new pay rates for existing Skilled Workers will still be based on the 25th percentile. However, they will now use ASHE data from 2023 instead of 2021. This means that while the pay rates may increase for those already working as Skilled Workers, the impact may not be as significant as it would be with a different calculation method.
For example, the yearly pay rate for an Accountant will rise to £33,900, and for a Solicitor, it will rise to £37,700.
Sponsored Prior to April 2024
Individuals who received a certificate of sponsorship before April 4, 2024, can use it for their Skilled Worker Visa application under the rules at that time.
For Skilled Workers seeking visa extension or job change before April 4, 2024, a reduced general salary of £29,000 applies. This salary must meet the minimum for relevant SOC 2020 codes, which are higher than SOC 2010 codes.
Those sponsored before April 4, 2024, seeking visa extension or change will have lower salary requirements but with increased minimums under SOC 2020 codes.
New entrant concessions will increase the general salary to £23,200, with a 70% reduction in relevant SOC 2020 codes. PhD concessions include a 10% reduction for a relevant PhD and a 20% reduction for a STEM PhD, with general salaries of £26,100 and £23,200, respectively.
For codes on the Immigration Salary List, a minimum salary of £23,200 applies, with an 80% reduction in relevant SOC 2020 codes.
The hourly rate for those sponsored before April 4, 2024, will be £11.90.
These salary rules apply to Skilled Workers applying for change or extension before April 4, 2030, who held a visa before April 4, 2024.
Table showing the new minimum salary rates, including discounted rates that will be available:
Updates to Occupation Codes
It’s worth noting that many occupation codes will change to accommodate the updated list of occupations.
For instance, the current occupation code for Purchasing Managers and Directors is 1133. However, starting April 4, 2024, it will change to 1134. Similarly, the current code for Barristers and Judges is 2411, but it will change to 2412.
Skilled Workers extending their permission in the same role from April 4, 2024, should check and use the updated occupation code for their application.
Impact on Shortage Occupations
Certain occupations currently benefiting from a 20% salary threshold reduction are listed in the Shortage Occupation List. This list will now be renamed as the Immigration Salary List (ISL), with the discontinuation of the 20% discount. The Migration Advisory Committee (MAC) will review and adjust the list to align with the increased salary thresholds.
Although there will still be discounts for jobs on the ISL, potentially reaching up to 80% of the new £38,700 threshold, many jobs may still require salaries higher than this threshold.
With significant changes to the Skilled Worker visa, employers are uncertain about retaining the current new entrant rate, which offers lower thresholds and discounted rates. This rate benefits graduates, individuals under 26, and young professionals like accountants and solicitors working towards professional registration.
How Our Immigration Solicitors Can Assist You
Our solicitors possess extensive experience in sponsorship and preparing applications under the Skilled Worker route. If you need advice, our team is ready to have an initial discussion with you. Feel free to contact us or fill out the enquiry form below for further assistance.
