Saturday, 6 January 2024

UK immigration and businesses

 The Home Secretary unveiled a number of significant measures on Monday, December 4, with the goal of reducing the number of legal migrants to the UK by approximately 300,000. These measures included alterations to the minimum salary threshold for skilled workers, changes to the Shortage Occupation List, adjustments to dependent visas, and a review of the Graduate visa route.

These adjustments, which will go into effect in the spring of 2024, follow a hike in the cost of applying for a visa that was recently announced and an increase in the Immigration Health Surcharge that will start to apply the following month. They signify a significant change in the immigration landscape of the UK and have far-reaching effects on workers, businesses, and the families of British or settled individuals.  We will examine the main adjustments and their possible effects on both individuals and enterprises in this piece. They signify a significant change in the immigration landscape of the UK and have far-reaching effects on workers, businesses, and the families of British or settled individuals.  We will examine the main adjustments and their possible effects on both individuals and enterprises in this piece.

Threshold for the minimum salary of a skilled worker

The primary modification is to the significant rise in the minimum wage requirement for skilled worker visas, which has increased by over 50% to £38,700 annually from £26,200. According to a UK immigration lawyer Dubai, “Health and care workers will not be affected by this rise, but businesses—especially those that depend significantly on sponsoring skilled individuals at lower wages—may find it difficult to cope with this change. Since the rise is higher than the median pay in the UK, it may make it harder to hire people in industries like hospitality, where 95% of sponsored visa applications for jobs like managers and chefs might not be approved under the new level.”

According to our analysis, the increase in the minimum salary threshold will have an effect on 210 out of the 225 occupation codes that are eligible for a skilled worker visa (apart from the health and education occupation codes), as the going rate in these 210 occupation codes is currently less than £38,700 (assuming a 37.5 hour working week).       

The analysis done by a UK immigration lawyer Dubai indicates that in order to meet the new minimum, minimum salary for employment that fall under these 210 occupation codes will need to rise by 1% to 47.7%.  Workers whose employment fall under 116 (55%) of the 210 occupation codes that are subject to a raised general wage threshold will be required to receive a minimum pay that is at least 47.7% more than what is now the case.

The new arrangements will put pressure on employers to increase the working hours of sponsored workers, either as an alternative to paying higher salaries or to offset some of the additional cost, since the going rate is based on a 37.5 hour working week and must be pro-rated based on the weekly working hours stated on the certificate of sponsorship (CoS).

Nevertheless, as the Migration Observatory has noted, it is also true that a small percentage of applicants are affected by the higher £38,700 threshold for long-term skilled work visas. More specifically, care workers and senior care workers received around half of the 208,000 Skilled Worker visas awarded to main applicants in the year ending in September 2023. Interestingly, the pay rise does not apply to these categories. A further 20% of visas were granted to workers in the education or health fields, and these workers are not impacted by the new rule because their compensation is set according to nationally recognised pay scales. 

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