£38,700 SALARY – TOO HIGH TO PAY SKILLED WORKERS
New Entrant Salary Discount: A Guide for UK Sponsors and Applicants
The UK’s Skilled Worker Visa offers skilled migrant workers a pathway into the UK workforce, with provisions like the New Entrant Salary Discount supporting early-career applicants. This discount, which enables younger or recently graduated professionals to meet visa requirements with a lower minimum salary of £30,960.00, is designed for individuals at the beginning of their careers rather than first-time UK entrants.
Changes introduced in April 2024 raised the standard salary threshold for Skilled Workers to £38,700.00 annually but preserved the lower rate for new entrants, making it a valuable option for both employers and candidates.
Points-Based System:
To work in the UK under the Skilled Worker Visa, applicants need a total of 70 points to qualify. These points come from:
Mandatory Points (50 points) for meeting three main conditions:
- A job offer from an approved sponsor.
- A job role at the required skill level.
- Proof of English language skills.
Tradeable Points (20 points)
This is based on the salary offered by the employer. The minimum salary needed to earn these points depends on various criteria. This article focuses on achieving these 20 points through the new entrant salary discount to satisfy the criteria for a Skilled Worker Visa.
There are 11 different ways (Options A to K) that applicants can meet the salary requirement based on their specific job conditions.
Option A specifies that for most applicants, the minimum salary must equal or exceed both of the following:
- £38,700 annually, and
- The “going rate” for the job (determined by the job’s official occupation code, or “SOC”).
Option E and Option J are the two relevant tradeable points specific to new entrant salary requirements.
New Entrant Salary Discount (Option E):
For those qualifying as “new entrants,” the required salary must equal or exceed both of the following:
- £30,960 per year, and
- 70% of the going rate for the specific job role.
Transitional Arrangements for Existing Skilled Workers (Option J):
Transitional arrangements are available for those who held their Skilled Worker Visa before 4th April 2024 and continue to hold it, subsequently applying for renewal before 4th April 2030 with eligibility for further sponsorship as a new entrant.
Option J allows them to qualify at a reduced salary threshold, which must equal or exceed both of the following:
- £23,200 per year, and
- 70% of the job’s going rate.
Who Qualifies for the New Entrant Discount?
A “new entrant” is defined as someone early in their career, not necessarily someone applying for their first Skilled Worker Visa or first entry into the UK. It refers to early-career professionals who satisfy specific criteria. Meeting any one of the qualifying conditions below can make an applicant eligible for the new entrant salary discount:
1)Under 26 at the Date of Application:
Applicants must be under 26 on the date they submit their Skilled Worker Visa application.
2)Sponsored for a Postdoctoral Position:
Individuals sponsored for postdoctoral roles in specific fields such as:
- Chemical, biological, and physical sciences,
- Social and humanities sciences,
- Higher education teaching professions.
3)Working Toward a Recognised Professional Qualification:
This criterion applies to applicants pursuing qualifications in regulated UK professions such as law, finance, and healthcare. The sponsor must confirm the recognised qualification and ensure it aligns with regulatory body requirements.
4)Path to Full Registration or Chartered Status:
Applicants working towards full registration or chartered status with a professional body (e.g., in engineering or architecture) may qualify as new entrants.
5)Recently Graduated Student or Tier 4 Visa Holder:
This option is available for those whose last immigration status was under the Student or Tier 4 routes, provided they have completed a qualifying UK course within the past two years.
6)Recently Held Graduate Route Visa:
Recent holders of a Graduate Route visa are eligible, as long as their last immigration status was not as a visitor.
Time Limit for New Entrant Status
The new entrant status is limited to a maximum of four years. This includes time spent under any Tier 2 visa, the Graduate Route, or as a Skilled Worker, whether continuously or intermittently. Applicants must meet this criterion for the entire duration of their visa sponsorship. Sponsors and applicants should calculate this time carefully, as the four-year limit directly impacts their eligibility for the discount.
Example Scenarios
Scenario 1: Time Limit on New Entrant:
Tony holds a Graduate Visa for two years after completing his studies in the UK. He’s now offered a role under the Skilled Worker Visa and seeks sponsorship for three years from a new employer. Since new entrant status allows a total of four years, Tony is eligible for the discounted salary only for the next two years. His employer should issue a Certificate of Sponsorship (CoS) for two years. After this period, if they wish to extend his sponsorship, they must meet the full salary requirement for his job occupation code.
Scenario 2: Qualifying as a New Entrant:
Alexa is a 25-year-old in the UK who previously held a Tier 4 (Student) Visa. After graduation, she obtained a Graduate Visa and worked in the UK for two years. Alexa now wants to apply for a Skilled Worker Visa with a new employer who is willing to sponsor her as a new entrant. Since she has only two years of prior work permission, she qualifies for the new entrant salary discount, and her sponsor can employ her on a discounted salary.
Scenario 3: Not Qualifying as a New Entrant:
Rehman is 27 years old and has spent the last four years in the UK on a combination of Tier 2 (General) and Skilled Worker Visas, working in skilled roles. His new employer wishes to hire him under the Skilled Worker Visa and use the New Entrant salary discount. However, since he has already reached the four-year limit, he does not qualify as a new entrant and must meet the standard Skilled Worker salary threshold.
FAQs
1)What is the salary for a new entrant in the UK?
The minimum salary requirement for new entrants is either £30,960 per year or 70% of the occupation’s going rate, whichever is higher. This amount may vary based on the job’s SOC code.
2)Is there a time limit on how long someone can be sponsored as a “new entrant”?
Yes, individuals can qualify as new entrants for a maximum of four years in total, including any time spent on Tier 2, Graduate, or Skilled Worker visas. After this period, the applicant must meet the full salary requirements for their occupation.
3)Can a sponsor issue a CoS for more than four years under the new entrant discount?
No, sponsors cannot issue a CoS for more than four years at the new entrant rate. The CoS should only cover the remaining eligible period. For instance, if an applicant has two years left of their new entrant limit, the CoS should only be for two years.
How Can KTS Legal Help?
If you’re looking to navigate the complexities of the New Entrant Salary Discount and the April 2024 salary threshold changes, our team at KTS Legal Solicitors is here to help. Whether you’re an applicant seeking clarity on your eligibility or a sponsor needing guidance on compliance, we provide tailored support to ensure a smooth application process. Don’t let the intricacies of immigration rules hold you back from securing the talent you need.
Contact us today for expert advice and assistance with applications.
