We reported in our December newsletter that the general minimum salary for Skilled Workers was increasing to £38,700 from 4 April 2024.
The Government has now published revised SOC (Standard Occupational Classification) codes along with the new “going rates”. These are the codes assigned to roles which are eligible for sponsorship; if the going rate for the role as determined by the SOC code is higher than the general minimum salary, that will prevail.
As expected, these have also increased significantly. For example:
| SOC Code | Job Roles | Going Rate |
|---|---|---|
| 1121 | Production managers | £51,500 |
| 2121 | Civil engineers | £45,500 |
| 2122 | Mechanical engineers | £42,500 |
| 2133 | IT business analysts, architects and systems designers | £51,700 |
| 2421 | Chartered and certified accountants | £46,800 |
| 3556 | Sales accounts and business development manager | £52,500 |
| 2432 | Marketing and commercial managers | £46,500 |
In addition, the “Shortage Occupation List” has been renamed the “Immigration Salary List”. The 20% ‘going rate’ salary discount has been abolished and replaced with a 20% discount on the general salary threshold for occupations on the Immigration Salary List which is £30,960 but, again, if the going rate for the role as determined by the SOC code is higher than the general salary threshold, that will prevail.
Unsurprisingly, the number of roles on the Immigration Salary List is greatly reduced from the Shortage Occupation List; only 8% of job roles eligible for the Skilled Worker route have been included compared with nearly 30% previously.
The impact of these changes is that the cost of employing a worker from overseas is much higher, and employers who previously may have used migrant workers to address the UK skills shortage are now going to struggle to do so.
HR Solutions can advise on Sponsor Licence applications for you in respect of the Skilled Worker route, along with the relevant SOC codes for eligible roles and the associated going rates which must be met.
