The UK Home Office in March 2016 announced certain reforms to the Tier 2 visa - UK's skilled visa category with the objective to reduce reliance on foreign workers and protect job opportunities for UK residents.  These changes are put forth based on the recommendations of the Independent Migration Advisory Committee. The first phase of changes will take place this autumn and the second will take effect from April 2017.

The reforms the Tier- 2 categories have been disclosed well in advance of their implementation dates, allowing businesses time to plan and prepare accordingly.

The key changes include:

  • Increase in Minimum Salary Threshold for Tier 2 (General): Salary thresholds for experienced workers will be increased to £25,000 in autumn 2016, and £30,000 in April 2017. Some health and education professionals (medical radiographers, paramedics and secondary school teachers in mathematics, physics, chemistry, computer science) will be exempt from the higher threshold until July 2019. The minimum threshold for new entrants will remain at £20,800.
  • Simplified Tier 2 (Intra-company Transfer (ICT)): The current intra-company transfer provisions are being simplified by requiring all intra-company transferees to qualify under a single visa category with a minimum salary threshold of £41,500, with the exception of the graduate trainees.  The Tier 2 (Skills Transfer) will be closed from autumn 2016 and the Tier 2 (Short Term) will be closed from April 2017.  From April 2017, all intra-company transferees will be required to qualify under a single visa category.
  • Nurses will Remain on the Shortage Occupations List: In order to ease the recruitment crisis faced by NHS, nurses will remain on the Shortage Occupation List, but sponsors will need to carry out a Resident Labour Market Test (RLMT) before recruiting a non-EEA (European Economic Area) nurse.
  • Steps to Boost Hiring of Foreign Graduates: From autumn 2016, the number of Tier 2 ICT Graduate Trainee places available to each UK company will be increased from 5 to 20 each year, with the minimum salary threshold for this category being reduced from £24,800 to £23,000.

Overseas graduates will be given extra weight in the Tier 2 general monthly allocation panel reviews and they will be able to switch roles within a company once they have secured a permanent job.

  • Reduction in Salary Threshold for Certain ICT Workers: From April 2017, the minimum salary threshold for intra-company transferees working in the UK for between 5 to 9 years will be reduced from £155,300 to £120,000.
  • Levy of Immigration Skills Charge: An Immigration Skills Charge will be levied on Tier 2 employers at a rate of £1,000 per person per year from April 2017, with a rate of £364 for smaller businesses and charities, and an exemption for PhD occupations, Tier 2 (Intra-Company Transfer) Graduate Trainees and Tier 4 students switching to Tier 2.

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