UK Government announces minimum wage for new applications under the Skilled Workers Route
According to an information alert issued by Morgan Lewis, a law firm, “The planned salary threshold increase should have no impact on people who are already in the skilled worker pathway when they change sponsor, extend their visa, or They just go. However, they are expected to make minimum wage.” An increase in line with the minimum wage requirement set out in the relevant standard business code (as is current standard practice). The law firm says the rates applicable for specific business codes will be increased. There will be exemptions for some applicants, such as health and care visa applicants.
This announcement follows an earlier announcement on the increase in immigration health fees. Effective from 6 February this year, the immigration health fee rate has increased from GBP 624 per annum to GBP 1,035 per annum, with a discounted rate available for students and those under 18 years of age.
The ‘Shortage Occupation List’ will also be replaced by a new ‘Immigration Salary List’ starting from March 14, 2024. Morgan Lewis says the new immigration salary list will remove the 20% discount to the minimum wage for shortage occupation roles. and is expected to provide a more limited list of roles that are subject to rate reductions.
According to Morgan Lewis, employers may want to accelerate hiring practices for roles that will not meet the salary threshold in April 2024, and submit applications before these changes come into effect. Employers should note that Skilled Worker and Global Business Mobility visas can be submitted up to three months in advance of an individual’s proposed start date.
Sponsor License Renewal Changes:
Another change that has been announced is related to sponsor license renewal.
According to Fragomen, a global immigration law firm, sponsors are currently required to renew their sponsorship license every four years, by submitting a renewal application before the expiry date. Initial and renewal application fees range from GBP 536 to GBP 1,476. Sponsors whose licenses are set to expire before April 6, 2024, must submit and pay for renewal before the expiration date if they wish to retain the license.
An alert issued by Fragomen states that: The UK Home Office has confirmed that it has automatically extended sponsor licenses that are due to expire on or after April 6, 2024, with the need to apply for or pay a renewal fee. Without need for the next ten years. This extension is in anticipation of a rule change effective April 6, 2024, under which sponsor licenses will not need to be renewed. This policy change will reduce immigration-related costs for some employers who require a sponsorship license extension.
