Important significant changes to UK Skilled Worker visa – effective April 2023

Important changes to Skilled Worker visa 12th April 2023

Important changes to Skilled Worker visa were announced in the latest Statement of Changes to Immigration rules published by the Home Office on 9^th March 2023. The new immigration rules take effect on 12^th April 2023 for CoS certificates assigned from that date onwards.

It is important to understand the changes to Skilled Worker visa rules when applying for sponsor licence, assigning Certificate of Sponsorship (CoS) and applying for Skilled Worker visa and Health and Care visa.

Working in the UK now expressly includes working in UK waters

In the introductory text to the Appendix Skilled Worker Home Office spells out that “to work in the UK” includes working in UK waters. This follows what has already been set out in section 43 of the Nationality and Borders Act 2022.

Skilled Worker minimum yearly salary, hourly rate and other changes to pay from April 2023

The important points to note when deciding on what salary to pay for Skilled Worker migrants when CoS certificate is assigned on 12^th April 2023 or after:

1. The minimum Skilled Worker yearly salary has increased from £25,600 to £26,200.
2. The minimum yearly salary for jobs in shortage occupation, new entrants, jobs with PHD in relevant subject, jobs with PHD in STEM, jobs in health or education (i.e. so called ‘tradable points’ categories when the minimum salary can be lower than £26,200) has also increased.
3. The minimum hourly rate has increased from £10.10 per hour to £10.75 per hour.
4. For Soc Codes in Table 1 Appendix Skilled Occupations the 39 hours per week used for calculating the Soc Code going rate has changed to 37.5 hours.
5. The Soc Code going rates for the jobs have changed in the Appendix Skilled Occupations.
6. When assessing the minimum salary, the Home Office decision maker must not have reasonable grounds to believe the job the applicant is being sponsored to do does not comply with the National Minimum Wage Regulations or the Working Time Regulations.
7. Home Office clarified minimum salary calculations rules if Skilled Worker is being sponsored to work a pattern where the regular hours are not the same each week, resulting in uneven pay.

Skilled Worker yearly minimum salary and hourly rates changes April 2023

Standard Skilled Worker minimum pay (has to be paid when none of the other options listed further below apply):

• £26,200 per year; and
• £10.75 per hour; and
• the going rate for the occupation code.

Educational qualification: PhD in a subject relevant to the job 

• £23,580 per year; and
• £10.75 per hour; and
• 90% of the going rate for the occupation code.

Educational qualification: PhD in a STEM subject relevant to the job 

• £20,960 per year;and
• £10.75 per hour; and
• 80% of the going rate for the occupation code.

Job in a shortage occupation 

• £20,960 per year; and
• £10.75 per hour; and
• 80% of the going rate for the occupation code.

Applicant is a new entrant 

• £20,960 per year; and
• £10.75 per hour; and
• 70% of the going rate for the occupation code.

Job in a listed health or education occupation 

• £20,960 per year; and
• £10.75 per hour; and
• the going rate for the occupation code.

Salary calculation when migrants work a pattern where regular hours are not the same each week

If Skilled Worker is being sponsored to work a pattern where the regular hours are not the same each week, resulting in uneven pay:

(a) 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

(b) any unpaid rest weeks will count towards the average when considering whether the salary thresholds are met; and

(c) any unpaid rest weeks will not count as absences from employment for the purpose of paragraph 9.30.1 in Part 9 of the immigration rules (i.e. not count as absence without pay which can result in immigration permit being cancelled). We can also add here for completeness, that jury service and attending court as a witness was also added as permitted absence for Skilled Worker, and will not count towards the maximum permitted 4 weeks yearly absence without pay.  

For example, an applicant who works a pattern of 60 hours a week for £12 per hour for two weeks, followed by an unpaid rest week, will be considered to work 40 hours a week on average and have a salary of £24,960 (£12 x 40 x 52) per year.”.

Conclusion on the April 2023 changes to Skilled Worker visa

The April 2023 changes to Skilled Worker visa are significant for sponsor employers. The higher minimum salaries and hourly rates for Skilled Worker migrants mean that additional funds have to be assigned from the company budgets to pay the migrant Skilled Workers with CoS certificates assigned on 12^th April 2023 or after.

Sponsor employers and their HR teams must implement the changes in their HR policies and procedures to avoid sponsor licence and Skilled Worker visa refusals. The changes are quite easy to miss especially just after they take effect.