If you are an employer who sponsors skilled migrant employees, you need to be aware of changes to the salary thresholds as it will affect recruitment costs. The minimum salary thresholds will increase on the 12 April 2023 for employees recruited on skilled worker visas.
Applicant for a skilled worker visa must meet a set of eligibility criteria. One of those criteria is a minimum salary rate. There are exceptions to this rule, but most skilled work will still require a minimum salary. That rate is set by the Home Office. An applicant must be paid the highest of the following: £25,600 per annum and £10.10 per hour.
These rates will be changing as below.
There will be an increase to £26200 for the general salary threshold.
The minimum hourly rate will increase to £10.75.
For PHD level roles, and those on the shortage occupation list will increase to £23,580 and £20,960 correspondingly.
Those taking up a role in healthcare and education will have to earn a minimum of £20,960.
Employers should note the new rate will be based on a working week of 37.5 hours per week rather than the current 39 hour per week rate.
Employers need to be aware that the latest changes will only apply to workers who are issued a certificate of sponsorship on or after 12 April 2023. Employers with current sponsored migrant employees will not be affected by the new rules. Employers will need to be mindful of the increase of costs when applying to renew visa. Employer will have to pro rate the salary to 37.5 hours to ensure they follow the new rules. Sponsoring employers will have to correctly apply the rules to calculate the salary of migrant employees working variable hours.
This article is only for guidance and information and does not constitute legal advice. If you have a legal enquiry about an employee, please contact the Quest advice line on 0116 243 9193.
