The Statement of Changes (HC1160), published on 09 March 2023, sets out that from 12 April 2023, these rates are to change. This blog will set out these upcoming changes.

What are the changes to the general salary thresholds? 

There are a number of ‘tradable points’ options set out in the Immigration Rules. The particular tradable points an applicant intends to rely upon will determine the relevant rate of pay. For each option, an applicant must be paid the highest of the following:

1. The relevant general threshold;
2. The going rate for the role; and
3. £10.10 per hour, if applicable (note the upcoming increase below).

The going rate will depend on the occupation code for the role as set out in Appendix Skilled Occupations.

Option A: 

Applicants need to show that their salary meets the general salary threshold of £26,200 per annum, 100% of the going rate for the role, and £10.75 per hour.

Options B and C – Educational qualifications

Options B and C apply to those who hold PhDs. Option B applies to PhDs held in a subject relevant to the job role, and Option C applies to those who have PhDs in STEM subjects.

For Option B, Applicants need to show that their salary meets the general salary threshold of£23,580 per annum, 90% of the going rate for the role, and £10.75 per hour. For Option C, Applicants need to show that they meet the general salary threshold £23,580 per annum, 80% of the going rate for the role, and £10.75 per hour.

Option D – Shortage occupation list 

Occupations on the shortage occupation list can apply under Option D. From 12 April 2023, Applicants need to show that their salary meets the threshold of £20,960 per annum, 80% of the going rate for the role, and £10.75 per hour.

Option E – New entrants

A new entrant to the labour market may be paid a salary which equals or exceeds both £20,480 per year, £10.10 per annum and 70% of the going rate for the occupation. From 12 April 2023, the general salary threshold will be increased to £20,960 per annum and £10.75 per hour.

Option F – Jobs listed in health or education occupations 

From 12 April 2023, the general salary threshold will be increased to £20,960 per annum. There are also changes to the going rates.

What are the changes to the going rates?

Currently, the going rates are set out in Appendix Skilled Occupations and are based on a 39 hour work week. This means that the going rate must be pro-rated based on the number of hours the applicant is actually contracted to work. From 12 April 2023, the going rates in Appendix Skilled Occupations will be based on a 37.5 work week. The new going rates are set out in the Statement of Changes.

Given that often applicants are contracted to work 37.5 hours per week, this could make things more straightforward to calculate the going rate, rather than having to pro-rate it.

What if I work more than 48 hours per week?

Currently, the Home Office will only consider an applicant’s salary based on 48 hours per week towards the salary thresholds. Therefore, working more than 48 hours per week will not assist applicants to meet this requirement.

From 12 April 2023, this will still be the case unless the applicant is being sponsored to work a pattern where the regular hours are not the same each week, resulting in uneven pay:

1. work in excess of 48 hours in some weeks can be considered towards the salary thresholds, providing the average over a regular cycle (which can be less than, but not more than, 17 weeks) is not more than 48 hours a week; and
2. any unpaid rest weeks will count towards the average when considering whether the salary thresholds are met; and
3. any unpaid rest weeks will not count as absences from employment for the purpose of paragraph 9.30.1 in Part 9 of these rules.

What if my CoS was assigned before 12 April 2023?

The Statement of Changes, HC 1160, states that:

“The following paragraphs shall take effect on 12 April 2023. In relation to those changes, if an application for entry clearance or leave to remain has been made using a certificate of sponsorship issued before 12 April 2023, such applications will be decided in accordance with the Immigration Rules in force on 11 April 2023:…”

Therefore, the old salary thresholds will apply to applications where the CoS was assigned to the applicant before 12 April 2023.

How much must I be paid to settle as a Skilled Worker?

Once in the Skilled Worker route, applicants will be on a route to settlement. They must have spent a continuous period of 5 years in the UK on this basis (or in a permitted combination of routes). To settle, a Skilled Worker’s salary must be at least £25,600 per year and at least the going rate for the occupation code. However, as above, this will increase to £26,200 on 12 April 2023.

There are only two exceptions to this. If an exception applies, an applicant’s salary must be at least £20,480 (£20,960 from 12 April 2023) per year and at least the going rate.

Exception 1: the role is on the shortage occupation or a health or education occupation code

Exception 2: if the 5-year qualifying period for settlement includes time as a Tier 2 (General) Migrant in which the applicant was sponsored for a job in one of the following occupation codes:

• 2111 Chemical scientists
• 2112 Biological scientists and biochemists
• 2113 Physical scientists
• 2114 Social and humanities scientists
• 2119 Natural and social science professionals not elsewhere classified
• 2150 Research and development managers
• 2311 Higher education teaching professionals

This means that new entrants must receive an increase in their salary to settle, if they are below the minimum threshold of £25,600 (or £26,200 if applying after 12 April 2023) and do not fall within one of the above exceptions.

Contact our Immigration Solicitors

For expert advice and assistance in relation to an application in the Skilled Worker category, please contact our immigration solicitors on 020 8240 9018 or via the enquiry form on our website.