Home Secretary Asks Migration Advisory Committee to Advise on Future Salary Thresholds

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At a glance

On June 24, 2019, the Home Secretary asked the Migration Advisory Committee (MAC) to consider:

• The appropriate levels for immigration salary thresholds;
• How future salary thresholds should be calculated;
•  Whether salary thresholds should be region-specific for different parts of the United Kingdom; and
•  Whether there should be exceptions to salary thresholds.

 

The MAC is expected to respond to this submission by January 2020.  

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A closer look

The Home Secretary has submitted an official request for the Migration Advisory Committee (MAC) to consider the mechanism for calculating future salary thresholds, whether there should be exemptions to the thresholds, and other key issues related to the minimum salary thresholds for foreign workers.

Background

In December 2018, the UK government’s White Paper confirmed that a skills-based immigration system would be introduced once the United Kingdom leaves the European Union, and that there are plans to eliminate the cap on Tier 2 visas, widen the skills threshold and remove the requirement for employers to conduct Resident Labour Market Tests. The White Paper also set out that the minimum salary level for employer sponsored work visas would be GBP 30,000 per year.

Impact

• Employees. A lower salary threshold would mean that more individuals qualify for sponsorship under the new immigration regime starting 2021.
• Employers. A review of the minimum salary level would be welcome news for employers who feared that GBP 30,000 was too high and would impact their ability to fill staffing needs and recruit the best talent.

 

Looking ahead

The MAC is expected to report back by January 2020 when the government begins finalising its plans, which are due to be phased in starting 2021 as long as there is a Brexit transition period.

On the wider topic of Brexit, Fragomen advises that employers continue to plan for a no-deal Brexit and set up contingency plans for their affected employees and the business as a whole. Fragomen can advise on a range of options. Visit Fragomen’s website for other Brexit updates.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].