Bosses Want Post Brexit Immigrant Salary Threshold Cut to 20K From 30K

Post Brexit Immigrant Salary Threshold

Brexit Immigrant Salary Threshold

A group of business and education leaders want the post Brexit Immigrant salary threshold reduced from £30,000 a year to £20,000. They say they need this to avoid skills shortages.

At the moment, non-EU citizens must earn at least £30,000 to be allowed to work in the UK. After Brexit EU citizens will have to earn at least that as well.

Most Nurses Earn Less Than Brexit Immigrant Salary Threshold

However, the business an education groups warn that 60% of UK salaries are lower than £30,000. It seems 90% of nurses earn less than the Pre Brexit Immigrant Salary Threshold of £30,000.

Said Jasmine Whitbread of London First “It is vital that the government does all it can to keep the country at full strength at a time of great uncertainty. The thousands of businesses we represent are clear that without a bold move now on immigration reform, the skills shortages many companies face risk becoming even more acute.”

Companies Need to Import Worker from Abroad

They say that it is crucial that the Government puts in place measures post Brexit to allow them to remain full staffed. They say they need the Post Brexit immigrants salary threshold dropped to £20,000 or they will run out of workers in the NHS and in many businesses.

It seems that Jeremy Hunt wants to review the threshold if he is elected Conservative leader while Boris Johnson wants to put in place an Australian style points system.

IT Sector Hit If Brexit Immigrant Salary Threshold Falls

However, many of those currently coming in are from the IT sector and mainly from India.

Starting salaries in IT are normally between £28,000 a year and £30,000 a year for new graduates.

So, if the Government drops the post Brexit salary threshold to £20,000 this would seriously undercut the UK IT starting salaries never mind those with experience.

The average salary in IT is £52,500 so if the Government let in people on salaries of £20,000 a year that would have a devastating effect on salaries in the UK for those who work in IT.

Knock On Effect on UK IT Contractors

It would have a knock on effect on UK IT Contractors. When companies can’t find permanent staff they often take on contractors. If the post Brexit salary threshold is dropped they can just take on an IT immigrant at £20,000 a year.

One can understand that they need to drop this threshold for professions like nursing. However, if they just dropped it across the board it would hit those who work in the IT industry badly.

In saying this, one knows that the Government never bother too much about what hits people who work in IT.

Government Issuing Waivers to Brexit Immigrant Salary Threshold

It seems the Government is already issuing waivers in order to bypass the Pre Brexit immigrant salary threshold.

A Home Office spokesman said “Our new skills-based immigration system is designed to attract the talented workers we need for the economy to continue to prosper, while also delivering on the referendum result following the end of free movement.

Most Immigrant Jobs in IT

One hears alarm bells going off for those that work in IT in the UK. Most immigrant jobs in the past have been in IT. The big consultancies and big companies have always been able to persuade Governments that there is a massive skills shortage in IT in the UK.

If the post Brexit immigrant salary threshold is dropped to £20,000 across the board this will have a huge effect on jobs, salaries and rates in the IT industry.

If you know anyone else who would find this article useful, please share it with them using the social media buttons at the top and bottom of the page.

Ad – Contractor Services

When the IR35 changes were implemented in the public sector, rather than just pay the IR35 tax, most contractors inside IR35 decided to take the umbrella company route. If you are inside IR35, or caught by a blanket ban on Limited Company contractors, it would be worthwhile checking to see how much income you would keep using an umbrella company. Just fill out the form below and someone will be in touch to let you know.

If you think you can benefit from using an umbrella company, try the following:-

Simply Umbrella

Best Umbrella Companies for IT Contractors

Umbrella Companies for Project Managers, Programme Managers, Interim

Do you need some professional advice on which umbrella company is right for you? Do you want to get better returns from your Umbrella Company? Fill out the form below to receive expert advice.

For all necessary business insurance, including IR35, try Business Insurance for Contractors

    Your Name (required)

    Your Email (required)

    Your Telephone (required)

    Your Daily Rate (required)

    Please Fill in Answer to Simple Quiz Question




    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.