On 1st January 2021, the new Skilled Worker visa route will open to applicants from inside and outside of the European Economic Area (EEA) and the European Union (EU). It is, for all intents and purposes, the same as the Tier 2 (general) visa, with some slight changes to the eligibility criteria and process. It will be, as it is now, a route which relies on applicants being sponsored by licensed employers in the UK, however, the need for a resident labour market test (RLMT) will be removed, as will the cap on the number of skilled foreign workers. The removal of the need for RLMTs will benefit employers in terms of the speed with which they can recruit from outside of the UK. Under the current Tier 2 (general) work visa, applicants needed qualifications equivalent to degree-level (RQF6); this has now been reduced to the equivalent of our A-Level (RQF3). In this article, we will discuss the new salary requirements for the Skilled Worker visa route, which will apply from 1st
January 2021.
Explaining the Skilled Worker Points-Based System
The new Skilled Worker route is based on a points-based system which awards points for desirable characteristics, including salary. At least 70 points are required in order to be eligible to apply for a Skilled Worker visa. The points available will be as follows:
- An offer of a job by an approved sponsor (Mandatory): 20 points
- Job at the appropriate skill level (Mandatory): 20 points
- Speaks English at the required level (Mandatory): 10 points
- Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher) (Tradeable): 0 points
- Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher) (Tradeable): 10 points
- Salary of £25,600 or above or at least the going rate for the profession (whichever is higher) (Tradeable): 20 points
- Job in a shortage occupation as designated by the Migration Advisory Committee (Tradeable): 20 points
- Education qualification: PhD in a subject relevant to the job (Tradeable): 10 points
- Education qualification: PhD in a STEM subject relevant to the job (Tradeable): 20 points
We will discuss the salary requirements in the next section, however, it is important to note that some points are mandatory, and some are tradeable. This means that applicants can compensate for insufficient points in one tradeable requirement for another.
As the Home Office guidance states, “Meeting the mandatory criteria above will earn the applicant 50 points; they must obtain a further 20 “tradeable” points through a combination of points for their salary, a job in a shortage occupation or a relevant PhD”.
The New Minimum Salary Requirements For Skilled Workers
Under the current Tier 2 work visa system, applicants need to earn at least £30,000 or the ‘appropriate salary’ for the role being offered. The new Skilled Worker route has reduced this salary requirement to £25,600; this will apply from 2021. As we know from the above points available, meeting the higher salary threshold of £25,600 or the “going rate” for a particular job will give applicants 20 points. But it is possible to earn as low as £20,480 if enough tradeable points are available in other areas such as having a job offer in a shortage occupation or a relevant PhD qualification.
Salary requirements for new entrants
The ‘new entrant’ salary requirements mean that younger people or those commencing their career are not prevented from entering the UK job market.
Under the ‘new entrant’ rules, those who meet certain criteria will gain the full extra 20 points for their salary if they receive at least 70% of the going rate for their role, but more than £20,480. The new entrant rules apply to applicants who:
- Are under the age of 26 on the date of application
- Are applying for a postdoctoral position in certain science roles
- Have a job offer for a UK regulated profession and the applicant is working towards one of those professions
- Are working towards full registration or chartered status with the relevant professional body for the job they are being sponsored for
- Last had leave at Tier 1 (Graduate Entrepreneur)
- Last had leave as a student which expired up to two years before application and completed a Bachelor, Masters, PGCE or PhD in the UK
In addition, new entrants will be able to stay for four years, up from three years and one month under the current system.
The Home Office guidance on the Skilled Worker visa provides an example to illustrate how the new entrant rules work; that of a graduate in veterinary science who has been offered an entry-level job as a vet on a salary of £22,900. Ordinarily, an applicant in this scenario would not score points for salary but, as a new entrant, they will receive 20 points because their salary is:
- above the 30% lower threshold (than the going rate) for new entrants, and;
- above the minimum of £20,480.
Salary Requirements for the ICT Visa
Under the new immigration rules, the salary requirements for the intra-company route/s will remain the same at £41,500 for the ICT visa and £23,000 for the Intra Company Graduate Trainees.
Final Words
The reduction in the salary requirements for skilled workers will go some way to mitigating some of the impacts of no longer being able to recruit EU workers with free movement rights; quite how far remains to be seen. The ability to trade points is also a useful feature which will allow foreign workers to secure a job in the UK where the salary available is not quite high enough, but they have other desirable attributes to offset this.
