Considering the UK is struggling with illegal immigration and self-imposed Brexit, the Home Office has released its new Statement of Changes.
New Statement Released
Understanding immigration rules can be complicated at the best of times, but with the implementation of a 180-page statement, it is becoming difficult for all to grasp the new rules correctly.
Raising the Price
On March 14th, the government released its latest version of immigration rules. The most significant changes are raising the minimum income requirement for work visas, removing the pay for in-demand occupations, and setting minimum salary thresholds for immigrants in various occupations.
Cheap Foreign Labour Slashed
UK companies are now required to pay more for overseas workers coming to the UK on a Skilled Worker visa. Cheaper foreign labour is a thing of the past as the UK tries to discourage migration.
Sponsored Visa Employers Affected
The rule change will affect future workers seeking sponsorship and those already sponsored. As a result, the Standard Occupational Classification (SOC) codes have also been revisited.
Time to Fork Out More Money
Employers who want to sponsor Skilled Workers in the UK must fork out more money. They will need to pay more than half of people in similar positions.
Good News for Immigrants
This is terrible news for many employers but good news for immigrants that meet the requirements. As the threshold is raised, they will receive a substantial wage increase.
Hire British
The government wants more recruitment of British workers and hopes the system will encourage the employers to train, upskill and hire their own people.
New Rules, More Money
The new rules have officially commenced from April 4th. Sponsored workers will be paid at least the median salary for their position, as in the Appendix Skilled Occupations.
Minimum Pay Is Now Higher
The new pay thresholds will see the minimum pay rise by 48%. Most applicants fall under Option A, which will implement an increase of £26,200 to £ 38,700.
High-Demand Workers Will Cost You
Those with a relevant PhD (Option B) will see an increase from £23, 800 to £34, 830 and STEM jobs requiring a relevant PhD (Option C) will see a raise from £20, 960 to £30, 960.
Options D and E on a Par
For shortage occupations or jobs on the immigration Salary List (Option D) and new entrants (Option E), pay must be at least £30, 960, up from £ 20,960.
Discounts Given and Removed
Discounts have been applied to encourage workers to hire appropriately. 10% discount will be given for Option B, 20% for Option C and 30 % for Option E, however, the 20% discount for Option D will be removed.
Pay Scale Is Regulated
For those in certain positions with national pay scales, the minimum salary threshold is at least £23,200, but they should also receive the correct salary pay scale for their relevant role.
No Sector Should Be Reliant
The government is adamant that no sector should be reliant on immigration and thus the shortage occupation list has been abolished.
Shortage Occupation List Benefits
The most significant impact of this rule will be felt within the Shortage Occupation List. With both the discount and median rate removal, the shortage roles will have more significant pay increases.
Health and Care Visa Regulated
Another sector that will see a change is the Health and Care Industry. While the requirement hasn’t changed per se, a more precise definition of those who can qualify for the Health and Care visa has been stipulated.
Smaller Increases in This Sector
The salary requirements will have less impact on the health and care sector. Jobs not covered by a national pay scale will see smaller increases but increases nonetheless.
Rise Not Based on Median Rate
The rise will be based on the 25th percentile, not the median rate. The general category (Option F) increases from £23, 800 to £26,100.
Small Increases Seen Across the Board
Those with a relevant PhD (Option G) will see an increase of £26,100 from £23,800, and the salary threshold for a STEM PhD (Option H) will increase from £20, 960 to £23,200.
Skilled Workers to Grow Economy
The new rules were implemented to ensure that the UK’s immigration system could hire highly skilled workers in order to grow the economy.
Biggest Employment Intervention
These new rules will hopefully encourage employers to hire locally as opposed to finding cheaper labour from overseas.
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