UK Increases Salary Threshold for the Skilled Worker Visa in 2023

The minimum wage barrier is one of the complex and complicated conditions for sponsoring someone for a Skilled Worker visa. There isn’t a set, standard minimum salary for universally skilled workers. Instead, an appropriate level must be determined by applying immigration laws, Home Office guidance, and calculating the correct salary.

The UK’s Points-Based Immigration system was introduced to prioritise skills and talent in the immigration process. Under this system, individuals seeking to work or study in the UK are assigned points based on various factors such as qualifications, job offers, and English language proficiency. Meeting the required points enables individuals to secure visas and work permits.

Candidates for sponsored roles who are skilled workers receive points based on their annual salary. The points are then added to the total number of points needed to qualify for the visa. Any inaccuracies in interpreting the regulations or determining the salary level may lead to the denial of a visa application or even enforcement action against the sponsor for violating the sponsor guidance regulations.

The UK government has amended the salary threshold requirements to adapt to the changing economic landscape and labour market needs. Effective from January 1st, 2023, the minimum salary threshold has been revised as follows:

• The gross annual salary increased by £600 from £25,600 to £26,200.
• The minimum hourly rate ranges from £10.10 to £10.75 per hour.
• The minimum gross annual salary increases for eligible PhD-qualified positions from £23,040 to £23,580.
• The minimum gross annual salary has increased from £20,480 to £20,960 for positions on the shortage occupation list, some STEM and health care roles, and newly recruited employees classified as new “Entrants”.

Many of you may be wondering who these new ‘Entrants’ are and what qualifies a person to be considered one. Anyone relying on the new entrant rate must be able to show that they meet the criteria, i.e. they are under 26 years of age at the time of making their visa application, and they are either sponsored in a postdoctoral research position or working towards professional qualifications, chartered status, or registration. However, the leave available to new ‘entrants’ is only three years. They will need to reapply to stay in the UK after this time has passed, and they would no longer be considered a “new entrant” if they continue under the Skilled Worker route.

Reasons for Salary Threshold Change on Immigration

1. Market Demand: The salary threshold is adjusted to align with the current market conditions and demand for skilled workers. Increasing the salary threshold helps attract more qualified candidates and ensures that skilled professionals fill job opportunities if there is a shortage of specific skills or occupations.
2. Economic Considerations: Government use the salary threshold to control immigration levels and ensure that only individuals who can contribute significantly to the economy are granted visas. Authorities seek to prioritise the entry of people with higher earning potential by raising the salary threshold because doing so can have beneficial economic effects, such as increased tax contributions and less stress on public services.
3. Protecting Local Workers: Adjusting the salary threshold is a measure adopted to protect local workers from wage undercutting or displacement by foreign workers. By setting a higher threshold, the government ensures that the job market remains fair for local workers and prevents the exploitation of foreign workers who might be willing to work for lower wages.
4. Skills and Qualifications: Increasing the salary threshold is a deliberate effort to attract individuals with higher skills and qualifications. The government encourage employers to hire people with more specialised or advanced skills by raising the threshold, which will raise the overall skill level of the workforce and contribute to innovation and productivity.
5. Cost of Living: The salary threshold is adjusted to reflect the cost of living in the country. Higher thresholds help ensure that employees can afford an adequate standard of living when considering costs associated with housing, healthcare, and education.

Effects of the Salary Threshold Change on Immigration

1. The revised threshold salary requirements have implications for UK businesses, particularly those relying on immigrant labour. On the one hand, the new system aims to ensure employers prioritise hiring UK residents and paying fair wages. On the other hand, businesses may face challenges in recruiting skilled workers, especially in sectors with traditionally lower salary scales. These changes require firms to reassess their hiring strategies, upskill the local workforce, and explore alternative avenues to bridge talent gaps.
2. Immigrants seeking employment in the UK face challenges and opportunities due to the revised threshold salary requirements. On a positive note, the system encourages higher wages and fair treatment for skilled workers, ensuring that immigrants are not exploited or underpaid. However, it may limit opportunities for individuals in lower-paying sectors or entry-level positions. Immigrants must know the specific salary thresholds for their occupation and explore options to enhance their skills and qualifications to meet the requirements.
3. The changing threshold salary requirements in the UK’s Points-Based Immigration system reflect the government’s efforts to balance economic growth and ensure opportunities for domestic workers. While protecting local workers and preventing wage undercutting are the goals of these changes, it is important to carefully consider how they will affect industries that depend on immigrant labour. Maintaining a thriving and inclusive economy depends on finding the right balance.

DUE TO THIS INCREASE, potential UK immigrants will now require more training and career counselling to obtain higher-paying sponsorship jobs. RKY Careers can give you a better chance of achieving this than any other company in the UK’s career consulting sector. RKY Careers provides revolutionary career consulting services that will quickly land you your ideal position! These services range from CV, cover letter, and LinkedIn optimisation to Bootcamp certifications in various prominent fields that prepare potential UK immigrants to acquire skills and experience that will make them unbeatable in their desired career in the UK.

The UK’s points-based immigration system and threshold salary requirements constantly change to reflect the labour market dynamics. The updated minimum wage thresholds show the government’s dedication to fostering a just and competitive labour market while defending the rights of both native-born workers and immigrants. To ensure that these requirements support economic growth, satisfy industry demands, and uphold the UK’s standing as a hospitable and forward-thinking country, it is crucial to evaluate and adjust them continuously. For more information on the minimum salary requirements and guidelines for applying for a visa, please visit the UK government’s official website.