6 April saw the implementation of all the Migration Advisory Committee’s (MAC) recommendations relating to the UK Tier 1 (General) highly skilled migrant category visa.
These changes bring about the welcome reintroduction of points for Bachelor degrees; raise the age limits for scoring points; and see an increase in the salary band levels across the range of point scores.
The Government have yet to finalise the updated overseas earnings multipliers. It was hoped that these new uplift ratios would be available by the 6th of April, but this is not the case and in the interim, they will remain unchanged.
Overseas earnings multipliers are used to ‘uplift’ earnings from outside the UK in an effort to reflect differences in income levels across the world. For example, earnings derived in South Africa are multiplied by 3.2; for earnings in India the multiplier is 5.3; and for earnings in Australia there is no uplift.
So for instance, someone earning R150 000 in South Africa, would multiply their earnings by 3.2 and reach a relative UK earnings amount of R480 000.
The full table can be found below:
ANNEX A – PREVIOUS EARNINGS UPLIFT CONVERSION RATES
|Conversion Rate – 1.0|
|Andorra; Aruba; Australia; Austria; Belgium; Bermuda; Canada; Cayman Islands; Channel Islands; Denmark; Finland; France; French Polynesia; Germany; Gibraltar; Guam; Hong Kong (Province of China); Iceland; Ireland; Italy; Japan; Kuwait; Liechtenstein; Luxembourg; Monaco; Netherlands; Norway; Qatar; San Marino; Singapore; Sweden; Switzerland; United Arab Emirates; United Kingdom; United States of America; Vatican.|
|Conversion Rate – 2.3|
|American Samoa; Antigua and Barbuda; Argentina; Bahamas; Bahrain; Barbados; Botswana; Brunei Darussalam; Chile; Costa Rica; Croatia; Cyprus; Czech Republic; Estonia; Faroe Islands; Greece; Greenland; Grenada; Hungary; Israel; Korea (South); Latvia; Lebanon; Libya; Macao, (Province of China); Malaysia; Malta; Mauritius; Mexico; Netherlands Antilles; New Caledonia; New Zealand; Northern Mariana Islands; Oman; Palau; Panama; Poland; Portugal; Puerto Rico; Saudi Arabia; Seychelles; Slovak Republic; Slovenia; Spain; St Kitts and Nevis; St Lucia; Taiwan; Trinidad and Tobago; Uruguay; Venezuela; Virgin Islands.|
|Conversion Rate – 3.2|
|Albania; Algeria; Belarus; Belize; Bolivia; Bosnia & Herzegovina; Brazil; Bulgaria; Cape Verde; China (Peoples Republic of); Colombia; Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Fiji; Gabon; Guatemala; Honduras; Iran; Jamaica; Jordan; Kazakhstan; Lithuania; Macedonia; Maldives; Marshall Islands; Micronesia; Morocco; Namibia; Nauru; Paraguay; Peru; Philippines; Romania; Russian Federation; Samoa; South Africa; St Vincent & The Grenadines; Suriname; Swaziland; Syrian Arab Republic; Thailand; Tonga; Tunisia; Turkey; Turkmenistan; Vanuatu; West Bank and Gaza.|
|Conversion Rate – 5.3|
|Angola; Armenia; Azerbaijan; Bangladesh; Benin; Bhutan; Burma (Union of Myanmar); Cameroon; Comoros; Congo (Republic of); Cote d’Ivoire; Cuba; Djibouti; Equatorial Guinea; Gambia; Georgia; Guinea; Guyana; Haiti; India; Indonesia; Iraq; Kenya; Kiribati; Kosovo; Lesotho; Mauritania; Moldova; Mongolia; Montenegro; Nicaragua; Pakistan; Papua New Guinea; Senegal; Serbia; Solomon Islands; Sri Lanka; Sudan; Timor L’Este (East Timor); Ukraine; Uzbekistan; Vietnam; Yemen; Zambia; Zimbabwe.|
|Conversion Rate – 11.4|
|Afghanistan; Burkina Faso; Burundi; Cambodia; Central African Republic; Congo, (Democratic Republic of); Chad; Eritrea; Ethiopia; Ghana; Guinea-Bissau; Korea (North); Kygyz Republic; The Lao People’s Democratic Republic; Liberia; Madagascar; Malawi; Mali; Mayotte; Mozambique; Nepal; Niger; Nigeria; Rwanda; Sao Tome and Principe; Sierra Leone; Somalia; Tajikistan; Tanzania; Togo; Uganda.|
When calculating overseas earnings, the UK Government will convert such earnings into GBP (based on the closing spot rate on www.oanda.com), then apply the relevant uplift multiplier as per the above table to reach the UK equivalency. Points are then awarded accordingly as per the new thresholds.
Here are two examples of how the UK Government calculates overseas earnings:
The uplift multiplier applied to overseas earnings in SA is 3.2:1
ZAR140,000 = GBP12,500 (approx based on exchange rate)
GBP12,500 x 3.2 (SA earnings uplift multiplier) = GBP40,000
GBP40,000 = 25 points under the new criteria.
For this example, anyone in South Africa whom is under 30 years of age and has as a minimum a Bachelor degree, will require earnings of at least ZAR140,000 to qualify.
For overseas earnings in India, the uplift ratio is 5.3:1
INR515,000 = GBP7,600 (approx based on exchange rate)
GBP7,600 x 5.3 (India earnings uplift multiplier) = GBP40,280
GBP40,280 = 25 points under the new criteria
We are pleased to announce that the new Tier 1 visa criteria, including the interim multipliers, are now live on the 1st Contact Visas online assessment tool. To take a free assessment of your eligibility under the new criteria, please follow the link below.
If you are eligible now based on the current criteria and earnings uplift, we urge you to apply as soon as possible, as there is no indication as to when or what the changes to these multipliers will be in the future.
Once the UK Government have settled on the updated overseas earnings uplift multipliers, we will advise accordingly.