UK raises the threshold for salary requirements for skilled worker visas from 2025.
The UK government has today unveiled a significant reform to its immigration system, substantially increasing the salary required to obtain a Skilled Worker visa.
Beginning January 1, 2025, the amendments will necessitate that employers in some industries adjust to new salary thresholds to be eligible for the visa.
This regulation is introduced to only allow the most skilled and best paid Europeans to enter the UK labour market, and some of the salary thresholds to rise by up to 82%.
As per the UK government, the revised salary thresholds reflect the evolving economic priorities of the UK, and these thresholds aim to attract experts into those sectors where expertise is required.
This change will be felt throughout many different sectors of work, including technology, healthcare, and engineering, leading to a greater difficulty to obtain a Skilled Worker visa without a higher-paying role.
New salary thresholds for skilled worker visa applicants
In 2025, the UK will introduce the largest salary increases for Skilled Worker visa applicants in many years. For the majority of applicants the corresponding minimum allowance will increase from £26,200 to £38,700.
The salary expectation requirement increases from £23,800 for individuals with a relevant PhD and increases from £30,960 for individuals who have a relevant STEM PhD, as opposed to £20,960 .
For jobs on the shortage occupation list and for new entrants to the labour force, the salary requirement will also be raised to £30,960.
This increase signifies the government’s plan to ensure that only the most qualified individuals can access the Skilled Worker visa program.
The inflated thresholds are derived from median salary statistics, which are further expected to narrow the field of potential candidates to individuals who are the highest paid in their respective industries.
Implications for job seekers in the UK
DAAD Scholarship states that for job seekers planning to go to work in the UK, these transitions have the potential to be opportunities as well as challenges. Employees in fields, including software, engineering, and health will now be required to obtain work (i.e., job) offers substantiating new salary requirements.
News reports indicate that in many cases candidates will have to ask for a higher wage or search companies willing to accept this new paradigm.
In addition, 20% reduction for lack of occupation slots will be no longer provided under the new system. Nevertheless, workers having appropriate PhDs will continue to be eligible for certain discounts, in particular for workers in STEM disciplines.
Also, newly entering workforce, for example, recent graduates, will continue to take advantage of the discounts, easing the task of meeting the salary hurdles.
These revised salary thresholds will also decrease the number of positions meeting the requirements under the Skilled Worker visa scheme, since the new list has been updated with positions where the mean salary is higher. Although role will be less eligible, the ones remaining are likely to attract fewer applicants, meaning they will be more competitive.
Impact on employers and the UK job market
DAAD Scholarship reports that for UK employers sponsorship costs will go up because the new salary costs are going to be expensive. Companies will have to adapt their budgets to the needs of these changes, however the outcome may be a higher quality workforce.
If salary thresholds are raised, then employers can expect to recruit top-tier talent, thus maintaining a highly skilled and well paid team.
If the higher salary thresholds are used as a filter by employers, the applicant pool to consider would be restricted to the higher salary standards. It’s a potential winnowing of the hiring process, but also comes the downside that it can be harder for employers to identify good matches for some jobs, especially where there is a lack of suitably qualified labor, such as in some fields.
These are the changes which represent a major break in the UK’s immigration policy. With the new salary thresholds coming into play in 2025, both job seekers and employers will have to adapt to the new criteria and allow that the country always stays attractive with the most global top talent.
