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Posted on October 28 2020

UK reduces minimum salary threshold for migrants to settle by almost 30%

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By  Editor
Updated January 18 2024

The UK government has reduced the earlier required minimum salary threshold of £35,800 for migrants to settle in the UK. According to the rules – published on Thursday and coming into force on December 1 – the minimum salary threshold has been reduced to £20,480. A reduction of almost 30%.

Migrants on salaries of £20,480 might be entitled to settle in the UK after 6 years, taking up UK citizenship. Provided, however, that they secure enough points under the new UK points-based immigration system, qualifying them for jobs facing a shortage of workers.

The reduction of the minimum salary threshold is being regarded as a tacit acknowledgement by the UK government of the essential contribution of lower paid migrant workers to the economy of the UK.

The £35,800 salary threshold was introduced in 2011.

The 514-page document – Statement of Changes in Immigration Rules – ordered by the House of Commons to be printed on October 22, 2020, lays down the recent changes in the validity requirements for various UK immigration routes.

These changes are to take effect at 9 pm on December 1, 2020.

Providing a route to settlement in the UK, the Skilled Worker route is for employers for recruiting people for working in the UK in a specific job. In order to be eligible for the Skilled Worker route, the individual must have a job offer in an eligible skilled occupation from a sponsor approved by the UK Home Office.

Points requirement for Skilled Worker route
[I] Mandatory points [total 50 points required]
  • Sponsorship – 20 points
  • Job at skill level required – 20 points
  • English skills at B1* level – 10 points
[II] Tradeable points [total 20 points]

* - Common European Framework of Reference for Languages in all 4 components [reading, writing, speaking and listening].

An individual will be allotted 20 tradeable points as given below. Points will only be awarded for any one of the options given.

Tradeable points requirements

Option A

Salary exceeds or equals £25,600 per year and also the going rate for the occupation code.

20 points

Option B

PhD in subject relevant to job and salary exceeds or equals £23,040 per year and also 90% of the going rate for the occupation code.

10 points each will be for educational qualification and salary.

20 points

Option C

PhD in STEM subject relevant to job and salary equals or exceeds £20,480 per year and also 80% of the going rate for the occupation code.

20 points

Option D

Job in shortage occupation and salary equals or exceeds £20,480 per year and also 80% of the going rate for the occupation code.

20 points

Option E

New entrant to the labour market and salary equals or exceeds £20,480 per year and also 70% of the going rate for the occupation code.

20 points

Option F

Job in listed health or education occupation and salary equals or exceeds £20,480 per year and also the going rate for the occupation code.

[Those with jobs in any of the listed health or education occupations can only be awarded tradeable points from option F.]

20 points

In order to claim the mandatory points for sponsorship, the applicant must have a valid Certificate of Sponsorship for the job that they intend taking up in the UK.

Similarly, for claiming mandatory points for the appropriate skill level, the applicant must have been sponsored for a job in any of the eligible occupation codes.

Closing slightly earlier than expected on December 1, 2020, the UK Tier 2 [General] category – for skilled worker with job offer in the UK – will be transitioning into the Skilled Worker route. The Tier 2 [Intra-Company Transfers], on the other hand, will simply be referred to as Intra-Company routes.

If you are looking to Study, Work, Visit, Invest or  Migrate to the UK, talk to Y-Axis, the World’s No.1 Immigration & Visa Company.

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