MAC consultation on Tier 2 salary thresholds – anticipated impact and opportunity to have your say

As you will know, the Migration Advisory Committee (MAC) has been commissioned by the government to consult on increasing the minimum Tier 2 salary thresholds. In particular, the MAC is exploring whether to:

• Increase the Tier 2 minimum salaries per occupation for new entrant workers from the 10th percentile to the 25th percentile; and
• Increase the Tier 2 minimum salaries per occupation for experienced workers from the 25th percentile to the 50th or 75th percentiles.

In order to consider this in further detail, Kingsley Napley hosted a roundtable event with the Home Office last week. The key findings from the discussion were as follows:

• The majority of Tier 2 Sponsors felt that there would be a detrimental impact if minimum salary levels for more junior positions were raised to align more with salaries paid for highly skilled/specialised positions;
• A significant number of Tier 2 Sponsors already have had to increase their salary offers in order to employ a Tier 2 migrant;
• The majority of Tier 2 Sponsors felt that there would be a highly detrimental impact with regard to the proposal to increase the experienced worker minimum salary threshold to the 50th or even the 75th percentile.

More generally, the Home Office confirmed at the meeting that:

• The government is not happy with the workings of the shortage occupation list and that jobs should not be in the list indefinitely;
• The government is concerned about the rights of Tier 2 dependants to work in the UK; and
• The government is determined to reduce net migration levels over the course of the present parliament.

There could be a significant impact on your business if the government adopts the new minimum salary requirements. It is therefore vital that your views are taken on board by the MAC. Submissions need to be with the MAC by 3 July 2015. Please CLICK HERE to access the survey and provide your views.

Further information

For more information on the issues raised in this blog, please contact a member of the immigration team.