Sponsor licence holders considering sponsorship for Skilled Workers will need to be aware of the upcoming adjustments to salary thresholds from 12 April 2023.

Firstly, the minimum gross annual salary threshold for Skilled Workers will be increasing from £25,600 to £26,200.

Secondly, the minimum hourly rate will also be increasing from £10.10 per hour to £10.75 per hour; and the ‘going rate’ for individual occupations will now be based on a 37.5 hour working week, rather than the 39-hour working week. Where the worker is required to work longer than 37.5 hours per week, their annual salaries will need to reflect this, by taking into account the individual occupations minimum hourly rate.

Lastly, the discounted gross annual salary for eligible PhD qualified occupations will increase from £23,040 to £23,580, and for new entrants and shortage occupation list roles it will increase from £20,480 to £20,960.

The changes are in line with the imminent increases to National Living Wage, and they will predominantly affect those Skilled Workers whose salaries straddle the minimum threshold at the moment.

For any visa applications made using a certificate of sponsorship issued before 12 April 2023, they will still be decided in accordance with the salary thresholds in force on 11 April 2023. However, sponsor licence holders will need to bear these changes in mind for any certificates they issue from 12 April 2023, as a skilled worker visa will not be granted if the minimum salary thresholds are not met.

For further information, please contact Eleanor Wilkinson and Emily Warman in our Employment team.