Advisory Committee Proposes Minimum Salary Increases

United Kingdom

Further to last week’s client alert regarding the Migration Advisory Committee (MAC)’s advice to the Home Office on reducing non-EU migration to the UK, the MAC has published a consultation document that asks stakeholders to comment on the impact of significant minimum salary increases for Tier 2 workers.  The MAC has asked for responses by July 3, 2015.

The MAC has asked stakeholders to consider the impact of increasing the Tier 2 (General) and Tier 2 (ICT Short and Long-Term Staff) minimum salary thresholds. The consultation document proposes to increase the minimum salary for sponsored chartered accountants from £28,600 to £46,916, and for software developers from £31,100 to £48,718. 

The MAC also intends to review other aspects of Tier 2 migration, including the impact of limiting the time that sectors are deemed to be in shortage, implementing a surcharge on Tier 2 visas to fund apprenticeships, restricting the automatic right of Tier 2 dependents to work and applying the immigration health surcharge to intracompany transferees.

The MAC will make recommendations to the Home Secretary on July 21, 2015, and any resulting policy changes would be implemented on October 6, 2015.

What This Means for Employers

Fragomen will communicate clients’ interests and concerns to the government and MAC during the MAC consultation, but employers are urged to respond to the consultation individually.

MAC representatives have agreed to attend a Fragomen informational seminar to discuss employers’ concerns.  More details will be provided on this seminar when they become available.

It is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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