Skilled Worker salary increases: FAQ
- What is the new minimum salary level for sponsoring workers as Skilled Workers?
It depends on the job role. The minimum salary for a standard Skilled Worker application is rising from £26,200 to £38,700 per annum as a gross base salary. However, each job role also has its own minimum salary level that also needs to be met. For example, the ‘Business Development Manager’ role that is currently under SOC code 3545 currently has a minimum salary of £35,100. This will increase by 50% to £52,500 from 4 April under SOC code 3556.
- When will this increase commence?
The increase will apply to any new Certificates of Sponsorship (CoS) assigned after 4 April 2024. Once a CoS has been assigned (i.e. paid for), it has to be “used” in an application within 3 months. The start date for the job cannot be more than 3 months from the date of application. The current salary level could be used for anyone starting a new position up to the end of September 2024 if managed correctly by assigning a CoS before 4 April 2024.
The Sponsor Management System will be out off service on 3 April 2024, so all CoS will need to be assigned by 7pm on 2 April 2024.
- Can the salary include any allowances?
The minimum salary level only includes basic gross pay before income tax and including employee pension and national insurance contributions.
- Can the salary be pro-rated?
The minimum salary is based upon a 37.5-hour week. Where the weekly hours are higher than 37.5, the salary will be pro-rated. For example, a salary of £38,700 based on a 37.5-hour week would need to be £40,248 if based on a 39-hour week.
Part-time positions would need to earn the minimum salary based on a 37.5-hour week. A 22.5-hour week, for example, would need to earn at least the SOC code minimum or the minimum salary of £38,700, whichever is higher.
- Does this salary change apply to anyone who is already on a Skilled Worker visa?
The salary change applies to anyone being sponsored using a CoS assigned after 4 April 2024. No changes need to be made to the salaries of anyone currently being sponsored on a CoS issued before this date.
An extension application will require a new CoS, however. If an extension application is happening after 4 April 2024, then the higher minimum salary levels will then apply. If this presents an issue in terms of being able to increase the salary level at that point, it might be worth considering making the extension application before 4 April 2024, even if the employee currently has a visa with an expiry date after then.
Get in touch with Oliver O’Sullivan for any enquiries relating to skilled worker salary increases.