Skilled Worker Visa Salary Rates Set To Increase
Those in the UK under the Skilled Worker route, or looking to apply in this route, may be happy to know that the general salary thresholds for the route are to increase from 12 April 2023. This is likely due to the fact that wages are rising, as is the national minimum wage (from £9.50 to £10.42 in April 2023). However, it is yet to be seen whether these increases make sponsoring workers in this route less attractive for employers.
The Statement of Changes (HC1160), published on 09 March 2023, sets out that from 12 April 2023, these rates are to change. This blog will set out these upcoming changes.
What are the changes to the general salary thresholds?
There are a number of ‘tradable points’ options set out in the Immigration Rules. The particular tradable points an applicant intends to rely upon will determine the relevant rate of pay. For each option, an applicant must be paid the highest of the following:
- The relevant general threshold;
- The going rate for the role; and
- £10.10 per hour, if applicable (note the upcoming increase below).
The going rate will depend on the occupation code for the role as set out in Appendix Skilled Occupations.
Option A
In most cases, applicants will fall under ‘Option A’. The general threshold for Option A is £25,600. Therefore, Applicants need to show that their salary meets this threshold, 100% of the going rate for the role, and £10.10 per hour.
From 12 April 2023, the general salary threshold (for Option A) will be increased to £26,200 per annum and £10.75 per hour. There are also changes to the going rates, as set out below.
Options B and C – Educational qualifications
Options B and C apply to those who hold PhDs. Option B applies to PhDs held in a subject relevant to the job role, and Option C applies to those who have PhDs in STEM subjects.
The general threshold for Options B and C is £23,040.
For Option B, Applicants would need to show that their salary meets the general salary threshold of £23,040, 90% of the going rate for the role, and £10.10 per hour. For Option C, Applicants need to show that they meet the general salary threshold, 80% of the going rate for the role, and £10.10 per hour.
From 12 April 2023, the general salary threshold will be increased to £23,580 per annum and £10.75 per hour.
Option D – Shortage occupation list
Occupations on the shortage occupation list can apply under Option D.
The general threshold for Option D is £20,480. Applicants need to show that their salary meets this threshold, 80% of the going rate for the role, and £10.10 per hour.
From 12 April 2023, the general salary threshold will be increased to £20,960 per annum and £10.75 per hour.
Option E – New entrants
A new entrant to the labour market may be paid a salary which equals or exceeds both £20,480 per year, £10.10 per annum and 70% of the going rate for the occupation. More details on new entrants can be found in my previous blog here.
From 12 April 2023, the general salary threshold will be increased to £20,960 per annum and £10.75 per hour.
Option F – Jobs listed in health or education occupations
Applicants under Option F must show a salary which equals or exceeds both £20,480 per year and the going rate for the occupation code.
From 12 April 2023, the general salary threshold will be increased to £20,960 per annum. There are also changes to the going rates, as set out below.
For more information regarding the going rate for healthcare roles, please see my previous blog here.
What are the changes to the going rates?
Currently, the going rates are set out in Appendix Skilled Occupations and are based on a 39 hour work week. This means that the going rate must be pro-rated based on the number of hours the applicant is actually contracted to work. From 12 April 2023, the going rates in Appendix Skilled Occupations will be based on a 37.5 work week. The new going rates are set out in the Statement of Changes.
Given that often applicants are contracted to work 37.5 hours per week, this could make things more straightforward to calculate the going rate, rather than having to pro-rate it.
What if I work more than 48 hours per week?
Currently, the Home Office will only consider an applicant’s salary based on 48 hours per week towards the salary thresholds. Therefore, working more than 48 hours per week will not assist applicants to meet this requirement.
From 12 April 2023, this will still be the case unless the applicant is being sponsored to work a pattern where the regular hours are not the same each week, resulting in uneven pay:
- work in excess of 48 hours in some weeks can be considered towards the salary thresholds, providing the average over a regular cycle (which can be less than, but not more than, 17 weeks) is not more than 48 hours a week; and
- any unpaid rest weeks will count towards the average when considering whether the salary thresholds are met; and
- any unpaid rest weeks will not count as absences from employment for the purpose of paragraph 9.30.1 in Part 9 of these rules.
The statement of changes provides the following example:
“For example, an applicant who works a pattern of 60 hours a week for £12 per hour for two weeks, followed by an unpaid rest week, will be considered to work 40 hours a week on average and have a salary of £24,960 (£12 x 40 x 52) per year.”
What if my CoS was assigned before 12 April 2023?
The Statement of Changes, HC 1160, states that:
“The following paragraphs shall take effect on 12 April 2023. In relation to those changes, if an application for entry clearance or leave to remain has been made using a certificate of sponsorship issued before 12 April 2023, such applications will be decided in accordance with the Immigration Rules in force on 11 April 2023:…”
Therefore, the old salary thresholds will apply to applications where the CoS was assigned to the applicant before 12 April 2023.
How much must I be paid to settle as a Skilled Worker?
Once in the Skilled Worker route, applicants will be on a route to settlement. They must have spent a continuous period of 5 years in the UK on this basis (or in a permitted combination of routes).
To settle, a Skilled Worker’s salary must be at least £25,600 per year and at least the going rate for the occupation code. However, as above, this will increase to £26,200 on 12 April 2023.
There are only two exceptions to this. If an exception applies, an applicant’s salary must be at least £20,480 (£20,960 from 12 April 2023) per year and at least the going rate.
Exception 1: the role is on the shortage occupation or a health or education occupation code
Exception 2: if the 5-year qualifying period for settlement includes time as a Tier 2 (General) Migrant in which the applicant was sponsored for a job in one of the following occupation codes:
- 2111 Chemical scientists
- 2112 Biological scientists and biochemists
- 2113 Physical scientists
- 2114 Social and humanities scientists
- 2119 Natural and social science professionals not elsewhere classified
- 2150 Research and development managers
- 2311 Higher education teaching professionals
This means that new entrants must receive an increase in their salary to settle, if they are below the minimum threshold of £25,600 (or £26,200 if applying after 12 April 2023) and do not fall within one of the above exceptions.
Will these changes affect sponsorship rates?
In my view, these increases are minor and will unlikely dissuade potential sponsors from sponsoring applicants. This route has been hugely popular, particularly following Brexit and the end of free movement for European citizens.
The Home Office’s figures, last updated in November 2022, show that there was a percentage increase of 128% in the number of applicants between December 2019 and September 2022.
Contact our Immigration Barristers
For expert advice and assistance in relation to an application in the Skilled Worker category please contact our immigration barristers in London on 0203 617 9173 or via the enquiry form below.
