Immigration Salary List

Understanding the UK Immigration Salary List

On April 4, 2024, the Home Office introduced the Immigration Salary List (ISL), replacing the Shortage Occupation List (SOL). The Migration Advisory Committee (MAC) recommended this replacement after reviewing the UK’s immigration policies. 

The Immigration Salary List guides employers and visa caseworkers in deciding if a role meets the minimum salary for a Skilled Worker visa in the UK. It was developed to ensure fair compensation for international workers filling job roles in sectors experiencing skills shortages. Furthermore, it is used to ensure work visa sponsorship is issued for roles that meet the country’s actual needs and encourage the hiring of domestic talent. Some of the jobs in demand in Scotland per the ISL includes fishing, forestry, nuclear chemistry and shipbuilding and repairing. Some of the jobs in demand across every region in the UK includes care or support, animal rearing, artistry, and medical lab tech.

The minimum threshold set by the Immigration Salary List is 80% of the occupation’s standard rate. This means that for a role on the Immigration Salary List, the minimum salary must be at least £30,960 instead of the general minimum, which is £38,700. 

For Health and Care Worker visa applicants, the minimum salary must be at least £23,200 instead of the general minimum, which is  £26,200. Employers must note that these are for full-time jobs with a 37.5-hour work week. The salary is pro-rata, based on how many hours the employee must work weekly. The new salary requirement has applied to new work visa applicants since April 4, 2024. Employees on a work visa prior can still switch sponsors based on the outdated Shortage Occupation List. 

Due to these changes, employers looking to hire abroad must check if the roles are on the Immigration Salary List and specify this when issuing certificates of sponsorship. They must also ensure the job role meets other extra requirements outlined by the Home Office. 

How Can Employers and Individuals Utilise the Immigration Salary List?

Employers in the UK who wish to hire international employees can:

• Use the Immigration Salary List to find out roles for which they can pay lower salaries. 
• Gain insight into the sectors that have shortages and are prioritised by the government. Opening or branching a business in an area of shortage could mean gaining market share and talented overseas employees. 
• Use the list to ensure that they are compliant with immigration regulations. 
• Use the list to prepare the documentation for the employee’s work visa sponsorship. 

Individuals wishing to work in the UK can use the list to confirm if the role they are offered meets the minimum salary requirement and avoid visa refusals. 

Benefits of Having a Role Listed on the Immigration Salary List

These are some benefits of the ISL for employers and employees:

• Lower Minimum Salary Requirement: For employers, the main advantage is that they can pay overseas talent lower salaries, up to 20% below the standard minimum salary requirement for the occupation. This reduction helps make sponsoring overseas workers cost-effective. 
• Visa Fee Reduction for skilled worker route: If your role is on the Immigration Salary List, you pay £590 as a visa fee for a 3-year work visa instead of £769. You’ll pay £1,160 for over 3 years instead of £1,519. 

Roles Included in the UK Immigration Salary List

The specific sectors covered by the ISL are: 

• Agriculture, specifically fishing
• Construction
• Creative art
• Laboratory science
• Social science and humanities
• Natural science
• Pharmaceuticals

Current Status of the UK Immigration Salary List Post MAC’s Rapid Review

The Home Secretary of the United Kingdom, on December 4, 2023, announced there would be changes in the system that admits foreign workers in the UK. The following month, on January 17, 2024, the government inaugurated and authorised the MAC to review the Immigration Salary List and send in their proposal by February 23, 2024. After the rapid review, the Home Office announced the following changes that became effective on April 4, 2024:

• The Immigration Salary List(ISL) replaced the Shortage Occupation List.
• The 20% discount on the going rate was discontinued.
• The Skilled Worker Visa minimum salary requirement was increased to £38,700 from £26,200. However, if such a role is on the ISL, the minimum salary requirement would be £30,960.
• Health and Care Worker Visa holders will still be exempted from paying the immigration health surcharge (IHS) to encourage more workers to join an area of need.
• The minimum salary requirement for Health and Care Worker visa holders would rise to £26,200 from £20,960. However, if the role is on the ISL, the minimum salary requirement would be £23,200.

Guidance for Employers on the Immigration Salary List

Employers who wish to hire foreign talents must: 

• Check if the Role is on the ISL: Before issuing a certificate of sponsorship (CoS), check if the role is on the ISL. You must specify this in the CoS issued to the foreign worker, or their application will be rejected. 
• Choose the Correct SOC: Employers must select the correct occupation code when issuing a CoS to an international worker. The occupation code has an equivalent minimum salary requirement. Quoting the correct occupation code in the CoS enables the immigration caseworker to check if the role is eligible for sponsorship. If you quote the wrong occupation code, your international employee’s visa application can be refused. The Home Office may fine such an employer, suspend, revoke, or downgrade their sponsor license. Occupation codes change periodically; therefore, confirming you are using the right and current one when issuing CoS is vital. 
• Note the Extra Conditions of the ISL: Some jobs on the ISL have extra requirements that international workers must meet before they are eligible for sponsorship. An example is the animal care category, where horse care is specified. The work visa application of your prospective employee can be rejected here if the role does not relate to horse handling, even if it meets the salary requirements. Furthermore, some roles are eligible for sponsorship only in certain areas of the UK. An example is the shipbuilder and repairer roles, which are only eligible for sponsorship in Scotland. 
• Note the Standard Salary of the Role: Even though the ISL offers a reduced salary, employers must also take note of the occupation-specific salary of the role based on the labour market rate. They must pay either the general minimum or standard minimum, whichever is higher. For example, though a nuclear scientist’s job is on the ISL, and has a general minimum salary of £30,960, an employer will, however, have to pay £35,200 since that is the standard rate for the profession. 
• Salary Pro-rata: The ISL is based on a 37.5-hour work week, so employers must pro-rata their employees’ salaries to meet the hourly salary and overall salary per annum. For example, a nuclear scientist should be paid £35,200, which translates to £18.05 per hour. If you hire a nuclear scientist to work 30 hours weekly, the hourly rate must rise to meet the annual salary of £35,200. On the other hand, if you’re offering a 40-hour work week, you must pay £18.05 an hour to meet the hourly minimum rate. 

Changes in UK Immigration Salary Requirements

The Shortage Occupation List 2024 was formerly used to identify the sectors where UK employers are experiencing skills shortages. It allowed employers to offer lower salary rates of up to 20% to international workers to live and work in the United Kingdom. The skilled worker list also made visa application fees more affordable for international employees. Some of the sectors that benefited in this list are: 

• Healthcare 
• STEM
• Construction 
• IT
• Creative arts
• Agriculture

However, in April 2024, the UK government introduced changes that affected businesses, individuals, and foreign skilled workers. These changes aim to reduce the legal immigration by 300,000. The SOL was scrapped and replaced with the Immigration Salary List. 

Here are the implications of the Spring 2024 immigration changes:

Increased Minimum Salary Requirement: The most significant change was the increase in the general salary threshold to £38,700 from £26,200. This increment makes it more difficult for employers to hire overseas talent, straining the finances of some small businesses. This increment may now force employers to source local talent. 

Employees Already on a Skilled Worker Visa: The new salary changes do not affect foreign workers who are already on work visas should they want to extend, settle, or switch employers. However, their employers must pay them at least £29,000 or the lower going rate for their role. 

Beginner’s Guide to Self-sponsorship as a Skilled Worker

A business you started can sponsor your skilled worker application. However, you must not be a director in the company or be involved in managing the Sponsorship Management System (SMS). A business partner or employee must handle the CoS issuance. 

To sponsor yourself on a Skilled Worker visa, you must pass through 3 major stages.

Stage 1

Start and register your business in the UK with the Companies House. 

Stage 2

Next, obtain a sponsor licence. To do this, you must prove that your company is genuine and operates legally in the UK. You must present the following supporting documents with your application: 

• Evidence of HMRC registration
• Proof of registration with Companies House
• Evidence of company tax returns
• Proof of insurance worth at least £5 million with an insurance company registered with the Financial Conduct Authority 
• Certificate of registration from HMRC VAT 
• Evidence you own or rent your business space
• Corporate bank statement

Furthermore, you must set up three roles in your company to oversee sponsored employees. These roles are:

• Level 1 user who will manage the licence applications
• Key contact that will be the contact point with the Home Office
• Authorising officer to manage staff and the sponsor management system. 

One or multiple persons can fill these roles. However, they must be UK nationals or have settled status. You must not use your relative or partner for any of these roles. If your sponsor licence application is approved, you’ll be authorised to issue CoS.

Stage 3

Before you can apply for a Skilled Worker Visa your business must prove that: 

• It has a genuine need for your skill 
• They can and will pay you the minimum salary requirement for the role
• You’re at least 18
• They have paid the immigration skills charge
• You meet the English language requirement of Level B1 on the CEFR scale
• You have enough money to support yourself in the UK.
• You have proof that you are skilled enough for the role you’re moving to the UK to do

If your application is approved, you can then move to the UK. 

Recruitment from Overseas and the Immigration Salary List

If you want to recruit skilled workers from overseas, note the salary requirements associated with jobs on the Immigration Salary List

How Can IAS Help?

At IAS, we have a team of experienced lawyers who are experts in UK immigration law. With their assistance, you can get all the help you need to bring a foreign talent to the UK. Our services include sponsor licence application assistance, compliance check, and comprehensive visa application support for both employer and employee. Immigration law is dynamic, and it can be confusing to keep up with the changes; that is why we have grounded solicitors to help you make sense of it all. 

For more information about the Immigration Salary List and assistance with visa applications, call +44 (0)333 414 9244 or message us online.