We have recently seen significant changes to the rules surrounding Skilled Worker visas, including the replacement of the Shortage Occupation List with the Immigration Salary List, and overhauling the salary thresholds for the Skilled Worker points options. Here, we consider the key changes.
Introduction of the Immigration Salary List
The government announced that the Shortage Occupation List (SOL) would be replaced with the new Immigration Salary List (ISL) from 4 April 2024. This change was announced by the government in December 2023 as part of a scheme to reduce overall migration in the UK, as well as to assist in the prevention of abuse and exploitation in the immigration sector.
The ISL abolishes the 20% ‘going rate’ discount which was previously on the SOL. All roles on the list now have a minimum salary of £30,960, which is below the general minimum salary threshold of £38,700 for non-ISL roles.
The ISL allows a 20% discount to the general salary threshold, but not to the going rate threshold, which offers a certain degree of flexibility. However, this is not as generous as its predecessor, the SOL.
What is the Immigration Salary List?
The ISL is a new list of occupations which have a discounted salary threshold. Details of the list can be found in Appendix Immigration Salary List.
The impact of the replacement of the SOL with the ISL is substantial. For businesses who hired Skilled Workers in roles that were traditionally on the SOL, some of these roles will remain on the ISL (such as 5312 – Bricklayers, which is now 5313). However, a large number roles have been excluded, such as specified tech related and engineering roles.
The government has stated that the occupations listed on the ISL are ones in which it would be considered ‘sensible to offer a discounted salary threshold, rather than being a list of all occupations experiencing labour shortages’.
It is generally thought that the occupations that are included on ISL will be subject to regular reviews, reconsiderations, and updates.
What has changed?
Amongst the many updates that have come into effect in 2024, the main changes regarding Skilled Workers are the increasing of the general salary threshold, the increase of the going rates, and the replacement of the SOC 2010 occupation codes with SOC 2020.
The SOC 2020 occupation code list has now replaced the SOC 2010 list. Numerous codes have been renumbered, renamed, merged, or split up. These updated occupation codes can be found here.
Care should be taken to ensure that the most appropriate occupation code is selected. The CascotWeb tool or ONS Occupation Coding Tool can assist in detailing entry requirements, example tasks, and relevant occupation codes. Please note that at the time of writing this commentary, the ONS Occupation coding tool has not yet been updated to reflect the new SOC 2020 codes.
The current annual going rates are set at the 25th percentile of the Office for National Statistics (ONS) Annual Survey Hours and Earnings (ASHE) 2021. Going rates for new applicants will be increased from the 25th percentile to the median (50th percentile) for each occupation code, using ASHE data from 2023 instead of 2021.
The new entrant rate has been retained and will continue to offer a salary discount for workers who are under the age of 26, graduates, or individuals who are newly entering the labour market.
Further salary discounts include relevant PhDs, PhDs in a STEM subject, new entrants, and interim measures for individuals who are already on the Skilled Worker route.
For sponsors who are already in the process of employing a Skilled Worker, please note that if a Certificate of Sponsorship (CoS) was assigned to a Skilled Worker prior to 4 April 2024, the application should still be decided based on the prior rules. The rules have clarified the following – provided the CoS was assigned prior to 4 April 2024, the application may be submitted after 4 April 2024.
New Skilled Worker salary thresholds from 4 April 2024
There are a number of new categories when it comes to tradeable points for Skilled Workers. Skilled Workers who already have permission under the route will be able to use Option F – Option K. Comparatively, Skilled Workers applying for the first time will be subject to the higher salaries under Option A – Option E.
Options A to E (for people applying for the first time) are as follows:
- Option A: Salary equals or exceeds £38,700/year and the going rate for the SOC 2020 occupation code.
- Option B: PhD in a subject relevant to the job and their salary equals or exceeds both £34,830/year and 90% of the going rate for the SOC 2020 occupation code.
- Option C: PhD in a STEM subject relevant to the job and their salary equals or exceeds both £30,960/year and 80% of the going rate for the SOC 2020 occupation code.
- Option D: Job is on the ISL and their salary equals or exceeds both £30,960/year and the going rate for the SOC 2020 occupation code.
- Option E: New entrant at the start of their career and their salary equals or exceeds both £30,960/year and 70% of the going rate for the SOC 2020 occupation code.
The following options (F to K) are for people who already hold permission under the Skilled Worker route:
- Option F: Salary equals or exceeds both £29,000/year and the going rate for the SOC 2020 occupation code.
- Option G: PhD in a subject relevant to the job and their salary equals or exceeds both £26,100/year and 90% of the going rate for the SOC 2020 occupation code.
- Option H: PhD in a STEM subject relevant to the job and their salary equals or exceeds both £23,200/year and 80% of the going rate for the SOC 2020 occupation code.
- Option I: Job is on the ISL and their salary equals or exceeds both £23,200/year and the going rate for the SOC 2020 occupation code.
- Option J: New entrant at the start of their career and their salary equals or exceeds both £23,200/year and 70% of the going rate for the SOC 2020 occupation code.
- Option K: Job is in a listed health or education occupation and their salary equals or exceeds both £23,200/year and the going rate for the SOC 2020 occupation code.
Example: Making an initial Skilled Worker application as an Electrical Engineer
Prior to 4 April 2024, if applying as under the Skilled Worker route as an Electrical engineer (‘2123 – Electrical engineers; SOC 2010 occupation codes), applicants would be applying for a role that appears on the SOL. This means that the salary would need to meet the requirements of just 80% of the going rate. This would be £31,440/year (or £16.12/hour) for a 37.5 hour working week.
From 4 April 2024, the ISL applies, in which Electrical engineers no longer appear eligible for a discounted salary rate. For an initial Skilled Worker application, the new going rate on the SOC 2020 occupation codes for ‘2123 – Electrical engineers’ is £53,500/year (or £27.44/hour) for a 37.5 hour working week.
This means that if Mr X was applying for his Skilled Worker visa subsequently to 4 April 2024, his salary would need to meet or exceed £53,500/year, which is a significant jump.
How will this impact employers?
Businesses may find that, in light of the new rules, they will need to adjust their current recruitment strategies to continue attracting talent from abroad and from within the UK, whilst complying with the new changes. This could lead to increased competition for Skilled Worker roles and could also cause potential upward pressure on wages in certain industries.
How our Immigration Solicitors can help
If your organisation requires legal assistance to make an application for a Skilled Worker Sponsor Licence or you would like to discuss your situation with a member of our team, please contact us or complete our enquiry form below.
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