In today’s blog update, we will talk about the national minimum salary threshold for skilled worker visas which has now been set at £40,000.
In a major anti-immigration step, British Prime Minister, Rishi Sunak, has agreed to increase the minimum salary threshold for foreign skilled worker visas from £26,000 to £40,000. Given the substantial increase, this is expected to affect freelancers and others like contractors wishing to work in the UK.
The decision forms part of a four-point plan adopted by Sunak and former Home Secretary Suella Braverman to tackle the issues associated with migration. The strategy also involves withdrawing graduate visas, limiting the number of dependents qualified migrants can accompany them, as well as giving priority to applicants of Russell Group universities for student permits.
Given that it raises the minimum salary threshold, it is likely the new regulations will give further headaches to non-British freelancers searching for such visas. Most freelancers work in areas where salaries do not normally exceed £40,000, thereby denying them the opportunity to serve in the UK.
According to news reports, this development has been on the cards for some time now. nothing has been finalized in that regard, as yet.
British freelancers may appreciate such less competition since not only do they suffer from IR35 but also from the current cost of living crisis.
It will also result in higher prices for companies. Greater payment limits might inflate commercial expenditure for British traders. Some companies may be forced to scale down their freelance work and shift their operations to foreign locations.
There may be other concerns such as less chances for entry-level freelancers. For instance, higher salary thresholds may impede the entry of new freelancers into the UK market since they might not attract similar rates to their more experienced counterparts.
It is likely that the implications of higher salaries for skilled workers including freelancers and startup founders would be varied. We welcome your thoughts.
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