Corporate report

Review of Tier 2: analysis of salary thresholds

The Migration Advisory Committee (MAC) report on its analysis of salary thresholds under Tier 2 of the points-based system.

Documents

Review of Tier 2: analysis of salary thresholds

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MAC press release: Tier 2 salary thresholds

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Details

On 10 June 2015, the government commissioned the MAC to review Tier 2 to address concerns about the rising number of migrants in that route and reliance on them to fill shortages. The MAC was asked to report on the salary thresholds by 21 July 2015.

The government also asked for early advice on the economic rationale and impact on net migration for setting new minimum salary thresholds to ensure that Tier 2 migrants are not undercutting the resident labour force.

Specifically, the MAC was asked to consider the impact of:

(i) increasing the Tier 2 (General) minimum salary threshold of £20,800 and the Tier 2 (ICT) minimum salary thresholds of £24,800 for the short-term category and £41,500 for the long-term category to a level that better aligns with the salaries paid to highly-specialised experts or individuals filling skills shortages skilled to NQF level 6 or higher

(ii) increasing the Tier 2 minimum salaries per occupation for experienced workers from the 25th percentile to the 50th or 75th percentiles, or other appropriate measure

(iii) increasing the Tier 2 minimum salaries per occupation for new entrant workers from the 10th percentile to the 25th or 50th percentiles, or other appropriate measure

This review is due to be completed by December 2015.

Published 13 August 2015