Unpacking the Pay Threshold Hikes for Skilled Worker Visas

Counsel Claire Nilson, paralegal Abilio Jaribu and trainee solicitor Emily Evans co-authored an article for Law360 on the recent U.K. government's hikes to salary thresholds for skilled worker visas, resulting in many firms being forced to withdraw job offers and cancel contracts.

The increased minimum thresholds for the so-called going rates of specific roles do not account for experience levels or allow any flexibility for the individual needs of the business. The key change is that the general salary threshold for the skilled worker visa has been raised from £26,200 to £38,700, a 48% increase.

The government has also relaxed rules on remote work, which means that individuals traveling to the U.K. can, in some instances, work remotely as a visitor. Alongside this, the government has also progressed its plans to phase out physical immigration documents and to have a fully digitalized immigration system in place by 2025.

The substantial increase in salary thresholds and the obligation to quickly adapt have placed a strain on businesses. The government's aim to reduce the reliance on migration is evident in these new rules, but the indirect impacts on business operations and talent mobility are significant.

The full article is available to Law360 subscribers.