New Statement of Changes Sets Out Details of Salary Requirements for Skilled Workers
Further to the December 2023 announcements (covered in my blog here), yesterday, on 14 March 2024, the Statement of Changes to the Immigration Rules HC590 was finally published.
This post is one of two assessing the impact of the changes on the salary requirements for Skilled Workers. In our second post, we assess the closure of the Shortage Occupation list and examine the application of the Immigration Salary List.
Calculating the Skilled Worker Salary Thresholds
Like under current rules, there will still be tradable points, with applicants requiring 20 points from the following:
Option A: The applicant’s salary equals or exceeds both:
- £38,700 per year; and
- the going rate for the SOC 2020 occupation code.
Option B: The applicant has a PhD in a subject relevant to the job and their salary equals or exceeds both:
- £34,830 per year; and
- 90% of the going rate for the SOC
2020 occupation code.
Option C: The applicant has a PhD in a STEM subject relevant to the job and their salary equals or exceeds both:
- £30,960 per year; and
- 80% of the going rate for the SOC 2020 occupation code.
Option D: The applicant is being sponsored for a job on the Immigration Salary List and their salary equals or exceeds both:
- £30,960 per year; and
- the going rate for the SOC 2020 occupation code.
Option E: The applicant is a new entrant at the start of their career and their salary equals or exceeds both:
- £30,960 per year; and
- 70% of the going rate for the SOC 2020 occupation code.
Option F: The applicant’s salary equals or exceeds both:
- £29,000 per year; and
- the going rate for the SOC 2020 occupation code.
Option G: The applicant has a PhD in a subject relevant to the job and their salary equals or exceeds both:
- £26,100 per year; and
- 90% of the going rate for the SOC 2020 occupation code.
Option H: The applicant has a PhD in a STEM subject relevant to the job and their salary equals or exceeds both:
- £23,200 per year; and
- 80% of the going rate for the SOC 2020 occupation code.
Option I: The applicant is being sponsored for a job on the Immigration Salary List and their salary equals or exceeds both:
- £23,200 per year; and
- the going rate for the SOC 2020 occupation code.
Option J: The applicant is a new entrant at the start of their career and their salary equals or exceeds both:
- £23,200 per year; and
- 70% of the going rate for the SOC 2020 occupation code
Option K: The applicant is being sponsored for a job in a listed health or education occupation and their salary equals or exceeds both:
- £23,200 per year; and
- the going rate for the SOC 2020 occupation code.
Keen observers of the ‘Tradable points’ options will notice that there are now 11, rather than 6 options. From initial review, it appears that migrants currently sponsored under the existing Options A – F will fall under new Options F – K, and persons not yet granted as Skilled Workers will be able to apply based on new Options A – E. This means that there is no ‘new’ option specifically for those in health or education occupations.
Skilled Worker Salary Requirements
The previous minimum earnings thresholds for a Skilled Worker were £26,200 pa / £10.75ph / the ‘going rate’ for the specific occupation code (under Option A).
The new Option A will see large increases in the minimum salary – with the general threshold rising to £38,700, but also Appendix Skilled Occupations will be changed significantly as the ‘going rates’ for many roles have increased dramatically. There will be a number of roles with ‘going rates’ above £80,000 pa, which is a big departure from the current salary rates.
Examples of going rate calculations
1115 (or 1111) – Chief executives
Pre – change
- The occupation code ‘1115 Chief executives and senior officials’ has the highest going rate of £59,300 per annum / £30.41 ph based on a 37.5 hour work week.
From 04 April 2024
- The new going rate for occupation code ‘1111 Chief executives and senior officials’ will be £84,100 per annum / £43.14 ph based on a 37.5 hour work week.
1139 – Functional managers and Directors
Pre – change
- The occupation code ‘1139 Functional managers and directors not elsewhere classified’ has a going rate of £36,900 per annum / £18.92 ph
From 04 April
- The occupation code ‘1139 Functional managers and directors not elsewhere classified’ will have a going rate of £69,900 per annum / £35.85ph
As can be seen from these examples, the minimum salaries new Skilled Workers will require will be significantly higher.
As well as ensuring compliance with the salary requirements, there are various ‘new’ occupation codes, and many of the numbers for existing skilled codes will change slightly – e.g. current code 3541 Buyers and Procurement Officers, will be 3551 Buyers and Procurement Officers, and the current 4114 Officers of non-governmental organisations will become 4113, with 5315 Carpenters and joiners becoming 5316.
Generally, companies and practitioners will have to be extremely careful when applying for and assigning Certificates of Sponsorship. It was anticipated that existing knowledge of the going rates and general thresholds would need to be updated, but even familiarity with the codes themselves cannot be relied upon from 04 April 2024. There may be a risk of confusion and refusals in immigration extension applications if an existing code is relied upon – e.g. a Carpenter (current 5315) must not be sponsored mistakenly in the new 5315 code, as from April this is going to be the code for plumbers and heating installers. Being mindful of this is vital – sponsor compliance duties mean licence holders risk revocation if they sponsor in the wrong code.
The hours a migrant works remain relevant for calculation of the going rate, and the calculations are still based on a 37.5 hour work week, which means that this aspect is at least untouched.
Happily, the definition of ‘new entrant’ is not changed by the incoming Rules, and so the rules in relation to applicants relying on being ‘new entrants’ are Options E for persons not yet in the route or for existing ‘new entrants’, the lower threshold in Option J if they meet the requirements under the new paragraph SW 12.1.
Overall, there will be a great deal of work required on behalf of companies and their representatives to ensure that sponsors remain compliant and are able to employ the workers they need in the UK.
Contact Our Immigration Barristers
For expert immigration advice, please contact our immigration barristers on 0203 617 9173 or complete our enquiry form below.
