UK Visas and Immigration recently released upcoming changes to the Skilled Worker Route, including updated salary thresholds for UK Sponsor Licenses.

Introduction

Details of the proposed changes to the Skilled Worker Route were finally made available on 14 March 2024. These changes mainly focus on the salary thresholds for sponsoring skilled workers. UK Visas and Immigration (UKVI) has introduced new general salary thresholds, the shortage occupation list has been replaced by the Immigration Salary List and  SOC 2010 occupation codes have been replaced by the SOC 2020 occupation codes.

New General Salary Threshold

The general salary threshold, which was previously £26,200, has been increased to £38,700. The hourly rate minimum has been increased from 10.75 to £15.88 per hour. So for the purposes of sponsorship all three of the following must be met:

General Salary of £38,700 (floor salary)

Salary under the relevant SOC 2020 occupation code

An hourly rate of £15.88

Reduction To Salary

The provision for a reduced salary for New Entrants to the labour market remains, however, the general salary has been increased from £20,960 to £30,960 and a minimum hourly rate of £11.90 per hour. The concession of a 70% reduction to the salary under the occupation code also remains. To calculate the minimum salary applicable to a new entrant applying for a Skilled Worker Visa after 4 April 2024, all of the following must be met:

General Salary of £30,960 (floor salary)

70% of the salary under the relevant SOC 2020 occupation code

An hourly rate of £11.90

Similarly, the provision for PhD holders is unaffected, and a reduction of 10% to the salary will apply for those who hold a PhD in a subject relevant to the job and a reduction of 20% for those who hold a PhD in a relevant STEM subject to their role. The applicable codes will be the SOC 2020 codes. The minimum general salary when relying on a PhD concession will increase to £34,830 for those with a PhD relevant to their job and £30,960 for those who hold a relevant PhD in a STEM subject.

Immigration Salary List

The new rules have made the shortage occupation list redundant and it has been replaced with the Immigration Salary List. There are a total of 23 occupation codes under this new list. All roles that come under a code on this list will benefit from a general salary of £30,960 and a 20% reduction of the salary given under the code in the SOC 2020 list of codes. The minimum salary when sponsoring on or after 4 April 2024, under a code that appears on the Immigration Salary List must meet both;

General Salary of £30,960 (floor salary)

80% of the salary under the relevant SOC 2020 occupation code

Sponsored Pre-April 2024

Those individuals who have had a certificate of sponsorship issued to them on or before 3 April 2024 and so under the  rules at the time of writing this, can rely on this for the purposes of their Skilled Worker Visa application.

For those workers who held a Skilled Worker Visa prior to 4 April and are looking to extend their visa or to make a change of employment application, a reduced general salary will apply. The new general salary for those covered by this criteria will be £29,000. The salary will however also have to meet the minimum salary under the relevant SOC 2020 occupation codes which are higher than those under the SOC 2010 codes.

For those sponsored before 4 April 2024 looking to extend or switch their visa a lower salary will apply but with an increase to the previous minimum salaries and the SOC 2020 codes, with their increased salaries, will be relied upon:

The new entrant concession will continue to apply but the general salary will be raised from £20,960 to £23,200 and a 70% reduction of the relevant SOC 2020 code

The PhD concession will apply with a 10% reduction for a relevant PhD role and a 20% reduction for a STEM PhD to the salary under the applicable SOC 2020 code. The general salary will be £26,100 for a relevant PhD and £23,200 for a relevant STEM PhD.

For those with codes that are on the Immigration Salary List a minimum salary of £23,200 will apply and an 80% reduction of the salary under the relevant SOC 2020.

The hourly rate applicable to those sponsored before 4 April 2024 will increase to £11.90.

These salaries will be applicable to those who held a skilled worker visa prior to 4 April 2024 and are applying for either a change of employment or an extension to their skilled worker visa prior to 4 April 2030.

Health And Care Workers

There are 10 SOC 2020 occupation codes that will qualify for a Health and Care Worker Visa. For any roles that meet all of the criteria for a Health and Care Worker Visa, a general salary of £23,200 and a minimum hourly rate of £11.90 per hour will apply.

To Conclude

In conclusion, the proposed changes to the Skilled Worker Route, unveiled on March 14 2024, mark a significant shift in the landscape of UK immigration policy. These revisions primarily target the salary thresholds for sponsoring skilled workers within the UK, ushering in a new era of requirements and considerations for both employers and prospective employees.

The government would say that these changes reflect a concerted effort to modernise and refine the UK Skilled Worker Route, aligning it with evolving economic and societal needs. However, the UK Government fail to foresee the difficulties and challenges for UK employers who in many sectors and or regions of the UK will undoubtedly be priced out of being able to sponsor a worker unless they are willing to pay a higher salary. This will be a difficult balancing exercise as there cannot be a disparity between what resident workers are paid and sponsored workers.

With many roles still hard to recruit and occupations which resident workers are unwilling to do, coupled with a global war on talent it will only be a matter of time before the UK Government sees that this is a knee-jerk reaction that needs to be rectified.

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