UK Skilled Worker Visa: Huge Salary Hike on April 4th

By Sanwar Ali:

Designer and author of the first ever AI sponsor licence system found as a GPT in ChatGPT4 under "workpermit.com Sponsor Licence". There is currently a more advanced system under development. 

In-Depth Report on the UK Skilled Worker Visa Salary Threshold Increase Effective 4 April 2024

Introduction

The UK government has announced a significant increase to the Skilled Worker visa salary thresholds, coming into effect on 4 April 2024. This change has important implications for UK employers holding a sponsor licence, as it represents a significant shift for those considering applying for this visa category. It is crucial to note that Certificates of Sponsorship (CoS) to sponsor migrant workers must be assigned by 7pm on 2 April 2024, to fall under the current threshold.

Detailed Breakdown of Salary Threshold Increases

General Salary Threshold Increase

The general minimum salary requirement for the Skilled Worker visa has increased from £26,200 to £38,700 annually. There are exemptions in certain circumstances such as for Health and Care workers. This substantial increase will affect a wide range of job categories and is likely to impact sectors that rely on skilled overseas workers.

Sector-Specific “Going Rate” Increases

The changes also include specific increases to the “going rate” for certain job roles. These rates, set by the government, may be higher than the £38,700 minimum for particular professions, requiring a thorough review of the going rate salary lists for each occupation.

Strategic Implications for Certificate of Sponsorship (CoS) Utilization

Assign CoS by 7pm on 2 April 2024

Certificates of Sponsorship assigned by 7pm on 2 April, 2024, will be evaluated under the current salary thresholds, providing an opportunity for applicants and employers before the increases take effect.

CoS Assignment Window

The ability to assign a CoS up to three months before a visa application remains, which may help employers and visa applicants.

Targeted Exemptions and Reduced Salary Thresholds

Health and Care Worker Threshold Increases

For health and care visa roles, the salary threshold will increase by the lower amount of £29,000 per year, reflecting the essential need for these professionals in the UK. Moreover, for certain occupations within the health and care sector, there is a provision for a lower salary threshold of either £23,200 or their occupation-specific threshold, whichever is higher.

New Entrants and Students

To support new entrants and students into the UK job market, certain applicants can be paid 70% of their job’s standard going rate if their salary meets or exceeds £30,960 per year. This applies if you meet one of the following requirements:

• You are under 26 at the time of application.
• You hold a Student visa and are studying at a bachelor’s degree level or higher, or have been in the UK on a Student or visit visa within the past 2 years.
• You currently hold a Graduate visa or have had one in the last 2 years.
• You are working towards a recognised qualification in a UK regulated profession.
• You are pursuing full registration or chartered status in the job you are being sponsored for​.

New entrants can remain in the UK for up to 4 years under this provision, which includes any prior time spent on a Graduate visa. After this period the applicant will need to come under a different salary threshold.

PhD Holder Benefits

Individuals with relevant PhD qualifications benefit from lower salary requirements to attract highly skilled professionals to the UK workforce. Those with a PhD in STEM fields can earn 80% of their job’s standard rate, provided they make at least £30,960 annually. PhD holders in non-STEM fields must earn 90% of the standard rate, with a minimum salary of £34,830 annually​.

In both cases, applicants must:

• Hold a UK PhD or an equivalent doctorate-level overseas qualification, verified through Ecctis (formerly UK NARIC).
• Prove that their qualification is relevant to the job they will be doing in the UK, which can be confirmed by their employer​​.

Additionally, research or academic leaders may qualify for the Global Talent visa, which has no language or minimum salary requirements.

Transitional Measures for Existing Visa Holders

Visa Extensions and Employer Changes

For current visa holders looking to extend their stay or change employers, the £29,000 threshold may apply, depending on the going rate for their occupation.

Employer Compliance and Oversight

Increased Responsibilities for Sponsor Licence Holders

The salary threshold increases may lead to greater scrutiny of UK employers holding a sponsor licence to make sure they comply with the new salary requirements. 

Non-Compliance Repercussions for Sponsor Licence Holders

Employers failing to meet the new salary thresholds could face severe consequences, including fines, suspension, or revocation of their sponsor licence. It is imperative for sponsor licence holders to understand and implement the changes to avoid such repercussions.

Recent Updates

Salary Thresholds Based on New SOC and ASHE Data

From 4 April 2024, the minimum salary threshold for a Skilled Worker visa application will rise to the higher of £38,700 or the going rate for the role as outlined in the updated SOC (Standard Occupational Classification) 2020. This replaces the previous SOC 2010, affecting the occupation code number for some roles.

Changes to Salary Data Reference Points

The reference data for setting these salaries will shift from the 25th percentile of the 2021 Annual Survey of Hours and Earnings (ASHE) data to the median (50th percentile) of the 2023 ASHE data. Consequently, the minimum salary threshold for some roles will significantly exceed £38,700.

Transitional Salary Requirements for Existing Visa Holders

Transitional salaries will apply to individuals who already hold a Skilled Worker visa and are applying to extend their permission or to change employers in the UK. The minimum salary for these individuals will be the higher of £29,000 (up from £26,200) or the going rate for their role, based on the 25th percentile of the 2023 ASHE data.

Application Window for Transitional Provisions

These transitional provisions will be available for applications made by individuals who were granted their Skilled Worker visa before 4 April 2024, and who apply before 4 April 2030.

How Workpermit.com Can Help with sponsor Licences

If you need help with employing Skilled Workers and applying for a Sponsor Licence, including complying with your Sponsor Licence obligations, HR responsibilities, etc workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)