Are any of your employees on a Skilled Worker visa? If so, a series of significant Skilled Worker visa changes came into effect on the 4th of April 2024.
These changes stem from the government’s 5-point plan announced in December 2023 to reduce net migration numbers, which stood at an estimated 764,000 in 2022. Migration numbers are calculated by minusing the number leaving the country (emigrating) from the number entering the country (immigrating). In other words, 764,000 more people moved to the UK than left during that year.
The changes to the Skilled Worker visa will affect salary thresholds, occupation codes, and more, with substantial implications for employers hiring students and graduates.
Today’s blog outlines the key changes and provides guidance for employers on navigating them effectively.
Summary of Key Changes to the Skilled Worker Visa
We’ve compiled a list of the most significant changes made to the UK Skilled Worker visa and what they mean for employers.
(Visit the House of Commons library for the full briefing)
1. Increase in Salary Thresholds
- The general minimum salary threshold for a Skilled Worker visa will increase from £26,200 to £38,700. This is a substantial rise, aimed at aligning salaries with the median levels of the Annual Survey of Hours and Earnings (ASHE) data.
2. Updates to Occupation Codes
- The occupation codes used for visa applications have been updated from SOC 2010 to SOC 2020. Employers must ensure they use the updated codes from 4th April 2024 onwards.
3. Transitional Arrangements
- Employees who already held a Skilled Worker visa or applied before the deadline will have transitional salary thresholds. For extensions or changes of employment, the minimum salary will be the higher of £29,000 or the new going rate based on ASHE data.
4. New Entrant and PhD Discounts
- New entrants and PhD holders continue to benefit from salary discounts. For new entrants, the minimum threshold is £30,960, while PhD holders have thresholds of £34,830 or £30,960 depending on their field.
5. Health and Care Visa Concessions
- Health and Care visa applicants have specific salary requirements, generally lower than the new thresholds, reflecting the national pay scales in these sectors.
Impact on Current Employees
So, how does the new Skilled Worker visa affect current employees?
As mentioned above, if any of your employees held a Skilled Worker visa before the 4th of April 2024, they are now subject to transitional arrangements.
They must meet the higher of £29,000 or the going rate based on updated ASHE data when extending their visa or changing employment.
If you haven’t done so already, you will need to review your current salary structures to ensure compliance and make any necessary adjustments.
Implications for Hiring Practices
Your recruitment and hiring practices will also be affected.
Employers must now adapt their hiring practices to meet the new salary thresholds and occupation codes set out in the implemented changes.
When posting job vacancies, they should reflect the increased salary requirements to attract international talent. Additionally, understanding the updated SOC 2020 codes is crucial for accurate job classifications and successful visa applications.
Visit the HESA website for more information on the updated SOC 2020 codes.
Salary Adjustments and Budgeting
One of the major changes is the almost 48% increase in salary thresholds from £26,200 to £38,700. As such, employers need to adjust their salary budgets.
This might involve re-evaluating the pay structure across the entire organisation to keep your salaries competitive. At the same time, you’ll need to find a balance to ensure compliance with the new visa requirements.
Supporting New Entrants and PhD Graduates
On the other hand, new entrants, such as recent graduates under 26, will benefit from a reduced minimum salary threshold of £30,960.
Employers can make the most of these concessions to attract young and diverse talent to their organisation.
Similarly, discounts for PhD holders (either £34,830 or £30,960 depending on the field) provide an opportunity to integrate highly qualified individuals into the workforce.
Health and Care Visa Considerations
The Health and Care visa will continue to offer concessions, with specific minimum salary requirements that align with national pay scales.
Employers in these sectors should ensure they meet the new requirements to benefit from these concessions.
View national pay scales for NHS and Social Care.
Conclusion
The 2024 changes to the UK Skilled Worker visa represent a significant shift in immigration policy as the government aims to reduce net migration figures.
As an employer, it’s your responsibility to stay informed and be proactive in adapting to these changes. Doing so means you can continue to attract and retain top talent.
Need help finding fresh talent for your organisation? At Developing a Student, you can access a diverse pool of +10,000 candidates by using our market-leading jobs board.
Here’s how we can help you build a workforce of top international talent:
- Advice and support: Our website is packed with guides for employers, including advice on attracting graduates and building a diverse work environment. Find the latest industry insights on our weekly blog.
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