The primary change that will curtail the ability of employers to sponsor workers in this route is the significant increase to the general minimum salary threshold from the current £26,200 per annum to £38,700 per annum for individuals newly sponsored in the Skilled Worker route from 4 April 2024 onwards.

The general minimum salary threshold must be met by all sponsored workers (other than those falling within specific exempt categories, such as where the role they will be doing is considered to be a shortage occupation, or where they are a new entrant to the labour market), as must the (now higher) ‘going rate’ for the role, which will be dependant on the applicable occupation code. This effectively means that roles which would have been eligible for sponsorship under the rules in place before 4 April 2024, will no longer meet the new salary requirements.

What does this mean for sponsors?

Many sponsors will have concerns about how the changes impact existing sponsored workers or will impact them when their sponsorship comes up for renewal, as well as the precise requirements which will now need to be met by individuals newly sponsored in the Skilled Worker route. The keys points to be aware of at this stage are:

Currently sponsored workers

For any workers who hold valid Skilled Worker permission, granted prior to 4 April 2024, no action needs to be taken, and their sponsorship can continue in line with their current certificates of sponsorship.

New sponsored worked where certificate assigned before 4 April 2024

Any new sponsored workers to whom a certificate of sponsorship was assigned before 4 April 2024 will be subject to the pre-existing regime (even if their Skilled Worker visa application is made after this date).

Workers already in the Skilled Worker route extending their visa with the same employer or switching to a new employer

Workers who are already in the Skilled Worker route who are required to extend their Skilled Worker permission with the same employer, or make a change of employment application to switch their employment to a different organisation, on or after 4 April are now required to meet an increased general minimum salary requirement of £29,000 per annum or the applicable going rate for the role, whichever is higher. The going rate is based on the newly applicable 2020 SOC codes from 4 April 2024, and not the 2010 SOC codes which currently apply. The going rate salaries in the 2020 SOC codes are higher than those contained in the 2010 SOC codes, and some occupations will have different code numbers and job descriptions. The new going rates for this category of workers, however, are not as high as those applied to workers entering the Skilled Worker route for the first time.

Further points

Any individuals who do not currently hold permission as a Skilled Worker, and have a certificate of sponsorship assigned to them from 4 April 2024 onwards, will be required to meet the new general minimum salary requirement of £38,700 per annum or the applicable going rate for the role, whichever is higher. This will apply to both in-country and overseas applications. The going rate will be based on the newly applicable 2020 SOC codes from 4 April 2024, and not the 2010 SOC codes which currently apply. The going rate salaries in the 2020 SOC codes will be higher than those contained in the 2010 SOC codes, and some occupations will have different code numbers and job descriptions.

There will continue to be some exemptions to the salary requirements, e.g. in relation to new entrants to the labour market, and those working in a shortage occupation (as set out in a new Immigration Salary List).

Global Business Mobility: Senior or Specialist Worker route

Sponsors holding a licence under the Global Business Mobility: Senior or Specialist Worker route should also be aware that the general minimum salary requirement for this route has increased to £48,500 as of 4 April 2024. Where the applicable going rate for the role is higher (based on the newly applicable 2020 SOC codes), the higher going rate must be met.

New sponsorship regime: How we can support you

The changes will inevitably give rise to a period of uncertainty as sponsors grapple with new salary requirements, occupation codes and the new Immigration Salary List, as well as disappointment and a requirement to re-think recruitment strategies when sponsorship is deemed unsuitable for individuals who would have previously met the requirements. The Walker Morris Business Immigration Team is ready to assist sponsors to navigate the new regime.

If you have any questions please contact Shabana or Ruth.

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