Rise in Minimum Wages for Skilled Workers in the United Kingdom in 2024

Rise in Minimum Wages for Skilled Workers in the United Kingdom

The Skilled Worker visa is a crucial avenue for individuals seeking employment in the UK, and the Rise in Minimum Wages for Skilled Workers in the United Kingdom in 2024. Among these requirements, the minimum salary threshold stands release as a significant factor that can decide the success or loss of a visa application.

Rise in Minimum Wages for Skilled Workers

In the realm of skilled migration, the minimum salary threshold holds immense importance. It serves as a key criterion in the points-based system, where applicants accumulate points based on the salary level associated with their sponsored roles. These points contribute to the overall score necessary for eligibility under the Skilled Worker visa.

Read also: How to Apply for skilled worker visa in the United Kingdom

How much is the minimum Skilled Worker salary?

The Skilled Worker visa minimum salary is set to increase in Spring 2024 to £38,700, up from the current £26,200. Various factors, such as occupation code, ‘new entrant’ status, and tradeable points, influence the minimum threshold.

Current from April 2023, the minimum wage and living wage rates  are:

AB
23 and over£10.42
21 to 22£10.18
18 to 20£7.49
Under 18£5.28
Apprentice£5.28

The rates which will apply from 1 April 2024 are as follows:

ABCD
National Living Wage (21 and over)£11.44£1.029.8%
18-20 Year Old Rate£8.60£1.1114.8%
16-17 Year Old Rate£6.40£1.1221.2%
Apprentice Rate£6.40£1.1221.2%
Accommodation Offset£9.99£0.899.8%

Factors Affecting Minimum Threshold

Several factors contribute to determining the applicable minimum salary threshold. Employers and workers must carefully assess these elements to navigate the immigration landscape successfully.

Relevant Occupation Code

Selecting the correct occupation code is paramount for eligibility. The Government’s list of eligible occupations and their corresponding ‘going rates’ guides this selection process.

Qualification as a ‘New Entrant

Qualification as a 'New Entrant

What is the New Entrants Rule?

A ‘new entrant’ designation is reserved for individuals who are at the early stages of their career, specifically those who meet specific criteria outlined by the UK Visa and Immigration (UKVI). It’s important to note that simply making the first Skilled Worker visa application or entering the UK for the first time does not automatically categorize an applicant as a new entrant.

To qualify as a new entrant, an applicant must satisfy one of the following conditions:

  1. Be under the age of 26 at the time of submitting your online visa application.
  2. Hold sponsorship for a post-doctoral position in a select number of occupations.
  3. Be actively pursuing a recognized professional qualification in a UK-regulated profession.
  4. Be working towards achieving full registration or chartered status with the relevant professional body corresponding to the sponsored job.
  5. Be transitioning from a Tier 1 (Graduate Entrepreneur) visa.
  6. Have had their most recent UK visa under Tier 4 (General) or the Student visa, which expired up to two years before the current application. If they are a PhD student, they must have completed (or be applying no more than 3 months before they are expected to complete) their course.
  7. Have had their most recent UK visa as a Graduate visa, which expired up to two years before the current application.

This classification helps identify individuals who are relatively new to the workforce or are engaged in specific educational or professional development pathways.

Source: wardhadaway.com

Tradeable Points and Salary Reduction

The concept of tradeable points introduces flexibility in meeting salary requirements. This section details the specific criteria, from shortage occupations to STEM qualifications, that enable a reduction in the minimum salary level.

Calculating Salary Based on Expected Hours

The meticulous calculation of salary based on expected hours is crucial for compliance. Considering variations in the occupation code list and the impact of overtime ensures adherence to regulations.

Overtime Considerations

Overtime can significantly affect compliance. Workers paid the minimum salary but engaged in more than the stipulated hours risk falling below the allowed payment threshold. if an employee works more than 48 hours a week then he or she is eligible for extra overtime.

Tradeable Points’ Criteria

Tradeable points offer flexibility in salary requirements, allowing payments between 70% and 90% of the usual going rate. Criteria such as shortage occupations, new entrant status, and relevant qualifications come into play.

Skilled Worker Visa Points System

RequirementPoints Available
A valid Certificate of Sponsorship20
Job at the appropriate skill level20
English language skills at level B1 or higher10

Understanding the Skilled Worker Visa Points System is essential for employers and prospective migrants. The table above outlines the key requirements and the corresponding points available for each criterion. Let’s delve into the details of these requirements.

Salary Level Calculation

Calculating the salary level per hour is a meticulous process. While the annual salary is crucial, attention to hourly rates, especially when the worker is paid the minimum, is imperative.

Selecting the Correct Occupation Code

The foundation of Skilled Worker eligibility lies in correctly selecting the occupation code. Employers should meticulously match job roles to the Government’s specified codes, avoiding potential pitfalls.

Skilled Worker to ILR Minimum Salary

Meeting the Indefinite Leave to Remain (ILR) minimum salary requirement is a significant milestone for individuals aspiring to settle in the UK permanently.

ILR Requirements

ILR applicants must meet a minimum salary of at least £26,200 or the going rate for their role, among other requirements. This section outlines the prerequisites for a successful ILR application.

Conclusion

Navigating the complexities of the minimum Skilled Worker salary is a critical aspect of the immigration process. Employers and employees alike must stay informed and adhere to evolving regulations to ensure a smooth and successful journey.

FAQs

  1. What happens if I select the wrong occupation code during sponsorship?
    • Selecting the incorrect code may lead to visa refusal. Genuine errors can be rectified, but intentional misrepresentation may result in sponsor license suspension.
  2. Is there a limit to the duration a new entrant can benefit from reduced salary thresholds?
    • Yes, new entrants are limited to three years of leave. Subsequent applications require reassessment under standard Skilled Worker criteria.
  3. Can overtime impact compliance with minimum salary requirements?
    • Yes, workers are paid the minimum salary but engaged
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