How Does Salary Increase Impact Job Application Prospect of International Job Seekers?
The Home Office announced a number of immigration-related changes in December 2023, including a significant increase in minimum salary thresholds for Skilled Worker visas. This change officially came into effect in April 2024. This has had a significant impact on the job application prospects of international job seekers based both in and outside the UK.
What has changed?
The minimum salary requirement for Skilled Worker Visas has increased to £38,700 per year. This is a significant increase from the previous threshold of £25,600. The new threshold is higher than the median salary for full-time employees in the UK. However, the increase does not mean that your employer must pay you £38,700 or above to be able to sponsor you. There are situations where you can be paid less, which we explained here, and in some circumstances, you may need to be paid at the going rate, which could be significantly higher than £37,800.
How will this affect international job seekers?
The increase in the salary threshold will make it more difficult for international job seekers to qualify for Skilled Worker Visas. This is particularly true for those seeking jobs in lower-paid occupations, including lower-skill, entry-level and graduate jobs.
The impact will also be felt more by women and part-time workers, who are more likely to be employed in lower-paid occupations.
The salary increase will not impact people who had already been on a Skilled Worker Visa before 4 April 2024.
If you are applying for jobs in the private sector:
In the year ending September 2023, the Home Office issued around 208,000 Skilled Worker Visas, of which 30% went to the private sector, and the majority of applicants who were working in these roles already earned more than the new £38,700 threshold. Due to the average salary being relatively low, if you are looking for visa-sponsored jobs in the following professions, you are most likely to be impacted by the new salary change.
- Marketing and related professions, especially below the managerial level
- Hospitality, including restaurant and catering.
- Chefs
- Butchers
- Services, such as hairdressers and beauty advisory
- Retail sales, especially below the managerial level
- Customer service
If you are applying for jobs in the public sector:
The impact of the salary increase on jobs in the public sector is not significant. In 2023, most of the visa sponsorship in the public sector went to health and care workers and teachers. Health and care workers are exempted from the increase because the salary increase does not apply to Health and Care Worker Visas. Other workers in health or teaching roles are also unaffected because their salaries are set using nationally agreed pay scales.
Other areas in the public sector often do not sponsor work visas due to legal restrictions.
If you are applying for entry-level or graduate jobs:
International job seekers who are mainly targeting entry-level jobs or graduate jobs will also be considerably impacted by the new rule. In our previous article, we explained how some people may benefit from salary discounts. However, even with the discount, you will need to be paid at least £30,960 unless your job is on the Immigration Salary List. With the higher salary requirements, it will be unlikely that junior and graduate jobs at mid- and low-skill levels will sponsor international candidates going forward.
Due to the costs involved in hiring foreign candidates for entry-level and graduate jobs not justifying the benefits, many employers may also stop sponsoring those roles altogether. Recently, some employers who historically hired a considerable number of foreign graduates for their entry-level and graduate positions withdrew job offers made in the wake of the new salary requirement. KPMG is one such example.
What are the implications for employers?
The increase in the salary threshold could make it more difficult for employers to recruit skilled workers from overseas. This is particularly true for employers in sectors that rely on lower-paid workers, such as hospitality and social care.
What can international job seekers do?
There are a number of things that international job seekers can do to increase their chances of securing a Skilled Worker Visa under the new rules.
- Negotiate a higher salary: If you are offered a job that does not meet the new minimum salary requirement, you may be able to negotiate a higher salary with your employer.
- Upskill: If you are currently targeting lower-skill jobs due to your education or work experience, you can consider obtaining relevant education and work experience to increase your skill level so you can apply for high-skill jobs.
- Consider other countries: Although immigration is getting tougher in the UK, countries like Germany, Spain, Netherlands and Ireland are also hiring large numbers of foreigners. You can apply for visa-sponsored jobs in other countries on Opentoworld.com.
- Consider alternative visa options: There are a number of other visa options available for international workers in the UK, such as the Global Talent Visa, High Potential Individual visa and the Innovator visa.
How will UK Visa Jobs support you going forward?
UK Visa Jobs is the largest platform for visa-sponsored jobs in the UK. Our team constantly monitors regulatory and market changes to ensure that our jobs list reflects the most up-to-date trends. We will continue to bring you the most recent graduate, entry-level and experienced hire jobs that sponsor visas in the UK. You can find the full list of jobs that sponsor visas here.
