Raising salary thresholds to sponsor Skilled Workers hits sectors with skills shortages

18 March 2024

The Home Office has published more detail about changes to immigration rules that will raise the salary threshold for skilled workers to enter the UK from April 2024.

HR managers and directors will need to be paid a minimum of £49,400 under the new legislation, up from the now £36,500 minimum.

The general salary threshold is due to rise from £26,200 to £38,000, bringing salary requirements for individual occupations in line with median pay for resident workers in those occupations.

The government originally announced the changes in January 2024, but issued the full memorandum last week.

New entrants to the skilled worker market will be entitled to a discount of 30% to the threshold.

The changes have replaced the Shortage Occupation List, which previously allowed certain sectors to pay employees 20% less than the threshold figure, with the new Immigration Salary List.

The explanatory memorandum stated that this move is part of government efforts to “encourage businesses to invest in the resident workforce, rather than over-relying on migration”.

The changes are set to apply to the whole of the United Kingdom and are due to be enforced from 4 April 2024.

Vanessa Ganguin, managing partner at Vanessa Ganguin Immigration Law told HR magazine that the changes would impact sectors facing skills shortages.

She said: “For start-ups, sectors facing skills shortages, and for many organisations outside the capital that don’t pay London wages, these hikes in the minimum salary may be crippling at a time when they face many challenges.

“Organisations, especially those paying lower salaries outside the capital, that face skills gaps that they have relied on filling from abroad will be hit the hardest.

“Sectors such as engineering, construction, agriculture and hospitality are looking at big hikes in the salary they will have to pay sponsored workers.”

Vanessa Ganguin noted that employers can pay a discounted salary when sponsoring new entrants as skilled workers.

She said: “For more junior staff, there are discounts for sponsoring new entrants as skilled workers (generally people under 26 years old or people who have graduated recently in the UK). Those on a graduate visa do not require the salary thresholds of sponsored skilled workers.”

Anyone keen to discuss any of the above changes, alternative work and personal immigration solutions or indeed any UK immigration matters can contact us on 0207 033 9527 or at enquiries@vanessaganguin.com. If it is regarding an application to be made before April, we would advise moving swiftly on it.