After US, UK increases visa fees: firms in UK hiring non-European workers to face £1000 per employee!

In a move to curb immigration, the UK government is soon to introduce a £1000 annual surcharge per non- European employee hired by a UK company. Large IT sector companies will be affected as the popular Tier 2 visas are widely sponsored by them.

Indian skilled workers were given the largest number of visas under Tier 2 in the year ending September 2015 and Indian IT workers accounted for 90 per cent of visas issued under the ICT route

The new up-front charge of 1,000 pounds for each skilled non-EU migrant will apply per year, so a three year visa would carry a surcharge of 3,000 pounds for each employee.

As part of a series of measures to cut employee numbers under the Tier 2 system by 20 per cent a year, the committee also recommended the salary threshold for these workers entering Britain be raised from 20,800 pounds to 30,000 pounds.

 

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According to UK’s Migration Advisory Committee (MAC) data, Indian skilled workers were given the largest number of visas under Tier 2 in the year ending September 2015 and Indian IT workers accounted for 90 per cent of visas issued under the ICT route.

The committee noted that “some of the heaviest users of the intra-company transfer route are Indian companies, and the top ten employers using the intra-company transfer route are all largely employing IT workers from India”.

The evidence indicates that multinational companies with a presence in India have developed a competitive advantage in delivering IT projects in the UK. They have developed a delivery model, whereby significant elements of projects are delivered offshore in India, taking advantage of the fact that Indian salaries are lower than in the UK for equivalent workers,” it said.

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