Skilled Worker visa for UK

A Skilled Worker visa allows you to come to or stay in the UK to do an eligible job with an approved employer.
This visa has replaced the Tier 2 (General) work visa.
If you or your family are from the EU, Switzerland, Norway, Iceland or Liechtenstein
If you or your family member started living in the UK by 31 December 2020, you may be able to apply to the free EU Settlement Scheme.
The deadline to apply was 30 June 2021 for most people. You can still apply if either:
you have a later deadline - for example, you’re joining a family member in the UK who was living in the UK by 31 December 2020 you have ‘reasonable grounds’ for being unable to apply by 30 June 2021 - for example, you had an illness or were the victim of domestic abuse
Otherwise you need a visa to work in the UK.
Irish citizens do not need to apply for a visa or to the EU Settlement Scheme.
Eligibility
Your job
To qualify for a Skilled Worker visa, you must:
work for a UK employer that’s been approved by the Home Office have a ‘certificate of sponsorship’ from your employer with information about the role you’ve been offered in the UK do a job that’s on the list of eligible occupations be paid a minimum salary - 

how much depends on the type of work you do
The specific eligibility depends on your job.
You must have a confirmed job offer before you apply for your visa.
Knowledge of English
You must be able to speak, read, write and understand English. You’ll usually need to prove your knowledge of English when you apply.
If you’re not eligible for a Skilled Worker visa
You may be eligible for another type of visa to work in the UK.
How long you can stay
Your visa can last for up to 5 years before you need
to extend it. You’ll need to apply to extend or update your visa when it expires or if you change jobs or employer.
If you want to stay longer in the UK
You can apply to extend your visa as many times as you like as long as you still meet the eligibility requirements.
After 5 years, you may be able to apply to settle permanently in the UK (also known as ‘indefinite leave to remain’). This gives you the right to live, work and study here for as long as you like, and apply for benefits if you’re eligible.
How to apply
You must apply online.
How you apply depends on whether you’re:
outside the UK and are coming to the UK inside the UK and extending your current visa inside the UK and switching from a different visa
If you want to change your job or employer, you must apply to update your visa.
Your partner and children can apply to join you or stay in the UK as your ‘dependants’ if they’re eligible.
How long it takes
You can apply for a visa up to 3 months before the day you are due to start work in the UK. This date is listed on your certificate of sponsorship.
As part of your application, you’ll need to prove your identity and provide your documents.


You may need to allow extra time if you need an appointment to do this. You’ll find out if you need one when you start your application.
Getting a decision
Once you’ve applied online, proved your identity and provided your documents, you’ll usually get a decision on your visa within: 3 weeks, if you’re outside the UK, 8 weeks, if you’re inside the UK
You may be able to pay to get a faster decision. How you do this depends on whether you’re outside the UK or inside the UK.
How much it costs
You, your partner or children will each need to:
pay the application fee pay the healthcare surcharge for each year of your stay prove you have enough personal savings
Check how much money you’ll need.
If you work in public sector healthcare
If you’re a doctor or nurse, or you work in health or adult social care, check if you’re eligible to apply for the Health and Care Worker visa instead. It’s cheaper to apply for and you do not need to pay the annual immigration health surcharge.
What you can and cannot do
With a Skilled Worker visa you can:

1. work in an eligible job
2. study 
3. bring your partner and children with you as your ‘dependants’, if they’re eligible take on additional work in certain circumstances do voluntary work travel abroad and return to the UK apply to settle permanently in the UK (also known as ‘indefinite leave to remain’) if you’ve lived in the UK for 5 years and meet the other eligibility requirements

You cannot:
apply for most benefits (public funds), or the State Pension change jobs or employer unless you apply to update your visa
If your application is successful, you’ll get a full list of what you can and cannot do with a Skilled Worker visa.
2. Your job
You must meet all of the following requirements to be eligible for a Skilled Worker visa:
your job is eligible for this visa you’ll be working for a UK employer that’s been approved by the Home Office you’ll be paid at least the minimum salary for the type of work you’ll be doing
The minimum salary for the type of work you’ll be doing is whichever is the highest out of the following 3 options:
£26,200 per year £10.75 per hour the ‘going rate’ for the type of work you’ll be doing
Check if your job is eligible
Before you can find out if your job is eligible, you need to know its 4-digit occupation code.
If you already have a job offer, ask your employer for your occupation code.
Look up your job’s occupation code
If you do not know your code, you can search for your job in the ONS occupation coding tool.
Not every job title is included. If you cannot find your exact job title, try searching for similar jobs.
Make sure the job description matches what you’ll be doing. Some similar jobs have different codes, for example chefs and cooks. Chefs are eligible for a Skilled Worker visa, but cooks are not.
Check if an occupation code is eligible for this visa
When you know your occupation code, view the table of eligible jobs to see if it’s included.
The table is very large. It’s sorted in order of occupation code, with the smallest numbers at the top. You may be able to use your web browser to search for your code on the page.
Salary requirements
You’ll usually need to be paid at least £26,200 per year or £10.75 per hour, whichever is higher. If the ‘going rate’ for your job is higher than both of these, you’ll usually need to be paid at least the going rate.

Example
Your salary is £27,000 per year, but the annual going rate for the job you’ll be doing is £30,000. You do not meet the usual salary requirements for this visa.
Each occupation code has its own annual going rate. Check the going rate for your job in the going rates table.
If you work in healthcare or education
There are different salary rules if you work in some healthcare or education jobs, where the going rate is based on national pay scales.
When you can be paid less
If you do not meet the usual salary requirements, and you do not work in healthcare or education, you might still be eligible if your salary will be at least £20,960 per year and at least £10.75 per hour.
Check when you can be paid less.
Approved UK employers
You must have a job offer from an approved UK employer before you apply for a Skilled Worker visa. Approved employers are also known as sponsors, because they are sponsoring you to come to or stay in the UK.
View the list of approved UK employers.
If your employer is not currently approved, they can apply for a sponsor licence if they’re eligible.
They’ll need to pay a fee - £536 for small
businesses and charities or £1,476 for medium and large organisations. It usually takes around 8 weeks to process a licence application.
If you already have a job offer from an approved employer
Your employer - also known as your sponsor - will check that you meet the eligibility requirements. They’ll give you a ‘certificate of sponsorship’ to prove this.
The certificate of sponsorship is an electronic record, not a physical document. It will have a reference number, which you’ll need for your visa application.
You must apply for your visa within 3 months of getting your certificate of sponsorship.
Check which documents you’ll need to apply.

3. When you can be paid less
You might still be able to apply for a Skilled Worker visa if your job is eligible but your salary is less than £26,200 or your job’s usual ‘going rate’. You must still be paid at least £10.75 per hour.
You can be paid between 70% and 90% of the usual going rate for your job if your salary is at least £20,960 per year and you meet one of the following criteria:
your job is in a shortage occupation you’re under 26, studying or a recent graduate, or in professional training you have a science, technology, engineering or maths (STEM) PhD level qualification that’s relevant to your job (if you have a relevant PhD level qualification in any other subject your salary must be at least £23,580) you have a postdoctoral position in science or
higher education
There are different salary rules if you work in some healthcare or education jobs.
Your job is in a shortage occupation
A ‘shortage occupation’ is a skilled job where there is a shortage of workers in the UK.
If your job is on the shortage occupation list, you can:
be paid 80% of the job’s usual going rate pay a lower fee for your visa
View the shortage occupations list to see if your job is included and how much you’ll need to be paid.
Make sure you check there’s a shortage in the part of the UK you’ll be working in - England, Scotland, Wales or Northern Ireland.
You’re under 26, studying or a recent graduate, or in professional training
You can be paid 70% of your job’s usual going rate if one of the following applies:
you’re under 26 on the date you apply you’re currently in the UK on a Student visa studying at bachelor’s degree level or above - or you have been in the last 2 years, and a Student or visit visa was your most recent visa you’re currently in the UK on a Graduate Entrepreneur visa you’ll be working towards a recognised qualification in a UK regulated profession you’ll be working towards full registration or chartered status in the job you’re being sponsored for
If this applies to you, check how much you’ll need to be paid to qualify for this visa.
Your total stay in the UK cannot be more than 4 years if you apply for one of these reasons. This includes any time you’ve already spent in the UK on a Tier 2 (General) work visa.
You have a PhD level qualification that’s relevant to your job
If your job is eligible for a PhD salary discount, you can be paid 80% or 90% of the job’s usual going rate, depending on which subject you are qualified in.
If you have a science, technology, engineering or maths (STEM) qualification, you can be paid 80% of your job’s usual going rate, as long as you will still be paid at least £20,960 per year.
If you have a non-STEM qualification, you can be paid 90% of your job’s usual going rate, as long as you will still be paid at least £23,580 a year.
In both situations, you must:
have a UK PhD or an equivalent doctorate-level overseas qualification - you’ll need to apply through Ecctis (formerly UK NARIC) to check if an overseas qualification is equivalent to a UK PhD be able to prove your qualification is relevant to the job you’ll be doing in the UK - your employer can confirm this
View the list of jobs that qualify for a PhD salary discount to see if your job is included and how much you need to be paid.

If you’re a research or academic leader, you may also be eligible to apply for the Global Talent visa. This visa has no language or minimum salary requirements.
You have a postdoctoral position in science or higher education
You can be paid 70% of your job’s usual going rate if you’ll be working in a postdoctoral position in certain science or higher education roles.
Your job must be in one of the following occupation codes to qualify for this salary discount:
2111: chemical scientists 2112: biological scientists and biochemists 2113: physical scientists 2114: social and humanities scientists 2119: natural and social science professionals that are ‘not elsewhere classified’, such as research fellows and sports scientists 2311: higher education teaching professionals
If this applies to you, check how much you’ll need to be paid to qualify for this visa.
Your total stay in the UK cannot be more than 4 years if you apply to work in a postdoctoral position at 70% of the usual going rate. This includes any time you’ve already spent in the UK on a Tier 2 (General) work visa.

4. If you work in healthcare or education

There are different salary rules if you work in some healthcare or education jobs. Your salary must be at least £20,960 - or more if your job’s ‘going rate’ is higher.
The going rates for these jobs are based on the national pay scales set by the relevant independent body, for example the NHS.
View the list of eligible healthcare and education jobs to see if your job is included.
National pay scales tables
If your job is on the list, your salary must be at least the national pay scale rate for the job you’ll be doing.
These going rates apply whether you’ll be working in the public or private sector.
Check how much you’ll need to be paid in the:
table of national pay scales for eligible healthcare jobs - listed by NHS pay band and area of the UK table of national pay scales for eligible teaching and education leadership jobs - listed by role and area of the UK
Ask your employer if you’re not sure what your role or pay band will be.
If your job is on the shortage occupation list
You and your family will pay a lower application fee if your job is in a shortage occupation.
View the list of healthcare and education shortage occupations to see if your job is included.
Make sure you check there’s a shortage in the part of the UK you’ll be working in - 

England, Scotland,
Wales or Northern Ireland.
If your job is on the list, the reduced fee for each person applying is:
£479 if you’re staying for up to 3 years £943 if you’re staying for more than 3 years
The fee is the same whether you’re applying from inside or outside the UK.
You’ll also need to pay the healthcare surcharge and prove you can support yourself in the UK -check how much money you’ll need.

5. Knowledge of English

You’ll usually need to prove your knowledge of the English language when you apply, unless you did this in a previous successful visa application.
Level of English
You must prove you can read, write, speak and understand English to at least level B1 on the Common European Framework of Reference for Languages (CEFR) scale.
You can prove your knowledge of English by:
passing a Secure English Language Test (SELT) from an approved provider having a GCSE, A level, Scottish National Qualification level 4 or 5, Scottish Higher or Advanced Higher in English, gained through study at a UK school that you began when you were under 18 having a degree-level academic qualification that was taught in English - if you studied abroad, you’ll need to apply through Ecctis (formerly UK NARIC) for confirmation that your qualification is equivalent to a UK bachelor’s degree, master’s degree or PhD
Who does not need to prove their knowledge of English
You do not need to prove your knowledge of English if you’re a national of one of the following countries or territories:
Antigua and Barbuda Australia the Bahamas Barbados Belize the British overseas territories Canada Dominica Grenada Guyana Jamaica Malta New Zealand St Kitts and Nevis St Lucia St Vincent and the Grenadines Trinidad and Tobago USA
If you’re a doctor, dentist, nurse, midwife or vet
You do not need to prove your knowledge of English if you’ve already passed an English Language assessment that is accepted by the relevant regulated professional body.
If you’re a vet, you may need to prove that you passed an English Language assessment with the Royal College of Veterinary Surgeons.

6. How much it costs

When you apply for a Skilled Worker visa, you’ll need to have enough money to:
pay the application fee - the standard fee ranges from £625 to £1,423 depending on your circumstances pay the healthcare surcharge - this is usually £624 per year support yourself when you arrive in the UK -you’ll usually need to have at least £1,270 available (unless you’re exempt)
You’ll pay a lower application fee if your job is on the shortage occupation list.
You’ll be told how much you need to pay when you apply.
For example, you’re applying to come to the UK from Argentina for 2 years on a Skilled Worker visa.
Your job is not in a shortage occupation so your visa will cost £625, plus £624 for each year of your stay for the healthcare surcharge. This means you’ll pay a total of £1,873 when you apply for your visa.
You’ll also need to prove you have £1,270 available to support yourself in the UK if your employer cannot cover these costs.
Application fees
If you’re applying from outside the UK, the standard fee depends on whether you’ll be in the UK for:
up to 3 years - £625 per person more than 3 years - £1,235 per person

If you’re applying from inside the UK to extend, switch or update your visa, the standard fee depends on whether you’ll be in the UK for:
up to 3 years - £719 per person more than 3 years - £1,423 per person
If your job is on the shortage occupation list
You and your family will pay a lower application fee if your job is on the shortage occupation list.
The fee for each person applying is:
£479 if you’re staying for up to 3 years £943 if you’re staying for more than 3 years
The fee is the same whether you’re applying from inside or outside the UK.
There’s a different list of shortage occupations if you work in healthcare or education.
Healthcare surcharge
You’ll also have to pay the healthcare surcharge for each year of your stay - this is usually £624 per year. Check how much you’ll have to pay before you apply.
Money to support yourself
You must have at least £1,270 in your bank account to show you can support yourself in the UK.
You will need to have had the money available for at least 28 days in a row. Day 28 must be within 31 days of applying for this visa.
You’ll usually need to show proof of this when you apply, unless either:

you’ve been in the UK with a valid visa for at least 12 months your employer can cover your costs during your first month in the UK, up to £1,270
Your partner and children will also need to prove they can support themselves while they’re in the UK. Check how much they’ll need.
Read the guidance on financial evidence for more information about the money you need and how to prove it.
If your employer can support you instead
Your certificate of sponsorship must confirm this. Your employer will need to complete the ‘sponsor certifies maintenance’ section on your certificate. This is under ‘Additional data’.

7. Documents you'll need to apply

When you apply you’ll need to provide:
your certificate of sponsorship reference number- your employer will give you this proof of your knowledge of English a valid passport or other document that shows your identity and nationality your job title and annual salary your job’s occupation code the name of your employer and their sponsor licence number - this will be on your certificate of sponsorship
Ask your employer for a copy of your certificate of sponsorship if you do not have one.
Other documents you might need
Depending on your circumstances, you might be asked to provide:
evidence that you have enough personal savings to support yourself in the UK, for example bank statements (unless your certificate of sponsorship shows your employer can support you) proof of your relationship with your partner or children if they’re applying with you your tuberculosis test results if you’re from a listed country a criminal record certificate - if you’re working in certain jobs a valid ATAS certificate if your employer tells you that you need one because your job involves researching a sensitive subject at PhD level or higher your UK PhD certificate, or your unique Ecctis reference number (formerly unique UK NARIC reference number) if your qualification is from outside the UK - you’ll need to apply through Ecctis
You’ll need a blank page in your passport for your visa if you’re:
from outside the EU, Switzerland, Norway, Iceland or Liechtenstein from the EU, Switzerland, Norway, Iceland or Liechtenstein but do not have a biometric passport with a chip in it
If your documents are not in English or Welsh you’ll also need to provide a certified translation.
Criminal record certificate
You’ll need to provide a criminal record certificate if you’re applying from outside the UK and you work in:
education, for example teachers, education advisers and school inspectors, childminders, teaching assistants healthcare, for example nurses, doctors, paramedics, managers, pharmacists, dentists and dental nurses, ophthalmic opticians therapy, for example psychologists, speech and language therapists, counsellors social services, for example social workers, managers, probation officers, welfare and housing officers
Check how to apply for criminal records checks.
If you work in healthcare, you might be able to apply for the Health and Care Worker visa instead.
If you’ve lived in more than one country
You might need to provide a certificate from each country you’ve lived in, depending on your age and how long you stayed in each country.
If you’re under 28, you’ll need a certificate from any country you’ve stayed in for a total of 12 months or more since you turned 18.
If you’re 28 or over, you’ll need a certificate from any country you’ve stayed in over the last 10 years.
When you’ve got your documents ready
You can apply online once your documents are ready.
How you apply depends on whether you’re:
outside the UK and are coming to the UK inside the UK and extending your current visa
inside the UK and switching from a different visa
You’ll either:
If you’ve read the guidance and you’re not sure if you’re eligible, you can use a Home Office checker tool. You’ll be asked to confirm that you meet all of the eligibility requirements.

8. Apply from outside the UK

You must apply online for a Skilled Worker visa.
Check which documents you’ll need to apply.
Proving your identity and providing supporting documents
As part of your application, you’ll need to prove your identity. How you do this depends on where you’re from and what type of passport you have.
have your fingerprints and photograph taken at a visa application centre - this is to get a biometric residence permit use the ‘UK Immigration: ID Check’ app to scan your identity document - you’ll also create or sign into your UK Visas and Immigration (UKVI) account
You’ll be told what you need to do when you apply.
If you do need an appointment:
the centre may need to keep your passport and documents while they process your application you may have to travel to get to your nearest visa application centre (this could be in another country)
Once you’ve started your application, you can save your form and complete it later.
Start now
Continue your application
Sign in to your account using the link from your sign-up email.
How long it takes to get a decision
Once you’ve applied online, proved your identity and provided your documents, you’ll usually get a decision within 3 weeks.
You’ll be contacted if your application will take longer, for example because:
your supporting documents need to be verified you need to attend an interview of your personal circumstances, for example if you have a criminal conviction
You may be able to pay to get a faster decision -you’ll be told if you can when you apply.
After you apply
You can ask to cancel your application. You’ll only get your fee refunded if UKVI has not started processing your application.
You’ll get an email containing the decision on your application. This will explain what you need to do next.
9. Your partner and children
Your partner and children can also apply to join you
or stay in the UK as your ‘dependants’ if they’re eligible. They’ll need to complete separate applications.
If their application is successful, their visa will end on the same date as yours.
Your relationship
A dependant partner or child is any of the following:
your husband, wife, civil partner or unmarried partner your child under 18 - including if they were born in the UK during your stay your child over 18 if they’re currently in the UK as your dependant
You’ll need to provide evidence of your relationship when you apply.
Your partner
You must be able to prove that either:
you’re in a civil partnership or marriage that’s recognised in the UK you’ve been living together in a relationship for at least 2 years when you apply
If your child is 16 or over
They must:
live with you (unless they’re in full-time education at boarding school, college or university) not be married, in a civil partnership or have any children be financially supported by you
If your child lives with you, you’ll need to provide
evidence of their address such as:
a bank statement credit card bills driving licence NHS registration document an official letter from their university or college
Money they need to support themselves
Your partner and children must have a certain amount of money available to support themselves while they’re in the UK.
You - or your partner or child - will need:
£285 for your partner £315 for one child £200 for each additional child
Example
You - or your partner or child - would need to have £600 to bring your partner and one child with you to the UK (£285 for your partner and £315 for your child).
You would also need to have £1,270 available to support yourself for your own application.
You - or your partner or child - will need to have had the money available for at least 28 days in a row. Day 28 must be within 31 days of you or them applying for this visa.
You’ll usually need to show proof of this when they apply, unless either:
you have all been in the UK with a valid visa for at least 12 months your employer can cover your family’s costs during your first month in the UK - this must be confirmed on your certificate of sponsorship
If your partner or child is applying at a different time to you, they’ll only need to prove they have enough money to support themselves if they have been in the UK for less than 1 year.
Apply from outside the UK
Your partner and children must either:
apply online as your partner outside the UK apply online as your child outside the UK
Each family member will need to complete a separate application and pay the visa fee. They must apply before they travel to the UK.
They’ll also need your application number - you’ll get this when you apply. This number is called a Global Web Form (GWF) or a Unique Application Number (UAN). You’ll find it on emails and letters from the Home Office about your application.
Proving their identity
As part of an application, your partner and children will need to prove their identity.
They’ll either:
have their fingerprints and photograph taken at a visa application centre - this is to get a biometric residence permit use the ‘UK Immigration: ID Check’ app to scan their identity document - they’ll also create or sign in to their UK Visas and Immigration (UKVI) account
They’ll be told what they need to do when they apply.
If they do need an appointment:
the visa application centre may need to keep their passport and documents while they process their application they may have to travel to get to their nearest centre (this could be in another country)
How long it takes to get a decision
Once they’ve applied online, proved their identity and provided their documents, they’ll usually get a decision within 3 weeks.
They may be able to pay to get a faster decision -they’ll be told if they can when they apply.
Apply from inside the UK (extend or switch their visa)
If you extend or switch your visa, your partner or child’s current visa will still be valid until its original end date. Your partner or child need to apply to extend or switch their visa, either:
at the same time as you at any time before their current visa expires
This includes children who have turned 18 during your stay.
Your partner or children cannot apply to switch to your Skilled Worker visa as your dependants if they are currently in the UK:
on a visit visa on a short-term student visa on a Parent of a Child Student visa on a seasonal worker visa on a domestic worker in a private household visa on immigration bail because they were given permission to stay outside the immigration rules, for example on compassionate grounds
How to apply
The application form will tell you if you can include your partner and children in your application or whether they need to apply separately.
If your partner or child apply separately, they’ll need to either:
apply online as your partner inside the UK apply online as your child inside the UK
They’ll need your application number - you’ll get this when you apply. This number is called a Global Web Form (GWF) or a Unique Application Number (UAN). You’ll find it on emails and letters from the Home Office about your application.
Proving their identity
As part of their application, your partner and children will need to prove their identity. They’ll either:
have their fingerprints and photograph taken at a UK Visa and Citizenship Application Services (UKVCAS) service point - this is to get a biometric residence permit use the ‘UK Immigration: ID Check’ app to scan their identity document - they’ll also create or sign in to their UK Visas and Immigration (UKVI) account
They’ll be told what they need to do when they apply.
They must not travel outside of the UK, Ireland, the Channel Islands or the Isle of Man until they get a decision. Their application will be withdrawn if they do.
How long it takes to get a decision
Once they’ve applied online, proved their identity and provided their documents, they’ll usually get a decision within 8 weeks.
They may be able to pay to get a faster decision -they’ll be told if they can when they apply.
Children born in the UK
If you have a child while you’re in the UK, they do not automatically become a British citizen.
You must apply for your child’s dependant visa if you want to travel in and out of the UK with them.
The form you fill in depends on whether your child is inside or outside the UK. Your child must either:
apply online as your child inside the UK apply online as your child outside the UK
You’ll need to provide a full UK birth certificate for each child, showing the names of both parents.
You must apply for their dependant visa before they turn 18 if they want to stay in the UK.
What your partner or child can and cannot do
Your partner or child can:
work, except as a sportsperson or coach study travel abroad and return to the UK apply to settle permanently in the UK (also known as ‘indefinite leave to remain’) if they’ve lived in the UK for 5 years and meet the other eligibility requirements
They cannot apply for most benefits (public funds), or the State Pension.
If their application is successful, they’ll get a full list of what they can and cannot do.

10. Extend your visa

You can usually apply to extend a Skilled Worker visa or a Tier 2 (General) work visa if all of the following are true:
you have the same job as when you were given your previous permission to enter or stay in the UK your job is in the same occupation code as when you were given your previous permission to enter or stay in the UK you’re still working for the employer who gave you your current certificate of sponsorship
Your partner or child’s visa will not automatically extend if you extend yours. If they do not extend their visa, it will be valid until its original end date.
They can either apply at the same time as you, or at any time before their current visa expires.
You must not travel outside of the UK, Ireland, the Channel Islands or the Isle of Man until you get a decision. Your application will be withdrawn if you do.
If you have a Tier 2 (General) work visa
You may need to meet different eligibility requirements, depending on:
whether you got the certificate of sponsorship for your first Tier 2 visa before or after 24 November 2016 whether you applied for your first Tier 2 (General) or Skilled Worker visa before 6 April 2021 your occupation code - some have different going rates
The requirements will apply if you either:
have a Tier 2 (General) work visa had a Tier 2 (General) work visa which you’ve extended as a Skilled Worker visa
If you got your certificate of sponsorship before 24 November 2016
If you apply to extend before 24 May 2023, the minimum salary you’ll need to be paid is fixed at a lower rate. You’ll need to be paid at least £20,800 per year unless the ‘going rate’ for your job is higher than this.
If you got your certificate of sponsorship on or after 24 November 2016
If you apply to extend before 1 December 2026, you will still need to meet the new salary requirements, but your salary may also include allowances, such as London weighting. Any allowances must be guaranteed for the length of your stay.
If you applied for your first Tier 2 (General) or Skilled Worker visa before 6 April 2021
The minimum salary requirement of £10.75 per hour or the going rate for the type of work you’ll be doing does not apply.
Jobs with different going rates
For some jobs, the going rate for the Skilled Worker visa is different.
Occupation code
2113 Physical scientists
2119 Natural and social science professionals
2311 Higher education teaching professionals
Fees
Going rate for Skilled Worker visa
£29,000 (£13.94 per hour)
£29,000 (£13.94 per hour)
£33,000 (£15.87 per hour)
90% of going rate (for relevant STEM PhD)
£26,100 (£12.55 per hour)
£26,100 (£12.55 per hour)
£29,700 (14.28 per hour)
Check how much it costs for your type of visa.
80% of going rate (for relevant non-STEM PhD or shortage occupation)
£23,200 (£11.15 per hour)
£23,200 (£11.15 per hour)
£26,400 (£12.69 per hour)
If you’ve changed job or employer
You’ll need to apply to update your visa instead.
You’ll also need to have your biometric information (fingerprints and a photo) taken. There’s no fee for this.
Proving your identity and providing supporting documents
As part of your application you’ll need to prove your identity. How you do this depends on where you’re from and the type of passport or resident permit you have.
You’ll either:
use the ‘UK Immigration: ID Check’ app to scan your identity document - you’ll also create or sign in to your UK Visas and Immigration (UKVI) account give your fingerprints and a photograph (biometric information) at a UK Visa and Citizenship Application Services (UKVCAS) service point - this is to get a biometric residence permit
You’ll be told what you need to do when you apply.
Apply to extend your Skilled Worker visa
You must apply online before your current visa expires.
Once you’ve started your application, you can save your form and complete it later.
Sign in to your account using the link from your sign-up email.
How long it takes to get a decision
You’ll usually get a decision within 8 weeks of your application date.
You’ll be contacted if your application will take longer, for example because:
your supporting documents need to be verified you need to attend an interview of your personal circumstances, for example if you have a criminal conviction
You may be able to pay to get a faster decision -you’ll be told if you can when you apply.
After you apply
If you need to change something in your application after you’ve sent it contact UK Visas and Immigration (UKVI).
You can ask to cancel your application. You’ll only get your fee refunded if UKVI has not started processing your application.
You’ll get an email or a letter containing the decision on your application. This will explain what you need to do next.
11. Update your visa if you change job or employer
You’ll need to apply to update your Skilled Worker or Tier 2 (General) work visa if:
you want to change your job and your new job is with a different employer your job changes to a different occupation code,

Fees

and you’re not in a graduate training programme you leave a job that’s on the shortage occupation list for a job that is not on the list
You do not need to apply again if you stay in the same job, but your job is taken off the shortage occupation list.
If you’ll be doing a different job for your current employer, you only need to apply to update your visa if your new job is in a different occupation code.
Your partner or children will need to apply separately to update their visa. They can either apply at the same time as you, or at any time before their current visa expires.
Check how much it costs for your type of visa.
You’ll also need to have your biometric information (fingerprints and a photo) taken. There’s no fee for this.
Eligibility and documents you’ll need to apply
Your new job must meet the eligibility requirements and you’ll need a new certificate of sponsorship to prove this.
You’ll only need to provide other evidence again if you’ve been in the UK for less than one year.
If you’re applying to add a second job to your current visa
You must apply to update your visa if you take on a
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second job that is either:
more than 20 paid hours a week in addition to the job you’re being sponsored for in a different occupation code
Your second job must meet the eligibility requirements and you’ll need a new certificate of sponsorship to prove this.
You’ll also need to include a letter with your application explaining that you want to change your current permission to stay.
Your letter must state:
your name your date of birth your current certificate of sponsorship reference number the date when your current permission to stay runs out
If your application is successful, you’ll get a new visa giving you permission to do both jobs.
You do not need to apply to update your visa if you’re taking on additional work in the same occupation code or you’ll be doing less than 20 paid hours a week.
When to apply to update your visa
You can apply to update your visa up to 3 months before the start date of your new job.
You can continue working in your current job while your new application is being considered, or to work out your notice period - as long as you apply before your current visa expires.
You should not start your new job until you’ve got confirmation of your new permission.
You’ll either:
You must not travel outside of the UK, Ireland, the Channel Islands or the Isle of Man until you get a decision. Your application will be withdrawn if you do.
Proving your identity and providing supporting documents
As part of your application you’ll need to prove your identity. How you do this depends on where you’re from and the type of passport you have.

give your fingerprints and a photograph (biometric information) at a UK Visa and Citizenship Application Services (UKVCAS) service point - this is to get a biometric residence permit use the ‘UK Immigration: ID Check’ app to scan your identity document - you’ll also create or sign in to your UK Visas and Immigration (UKVI) account

You’ll be told what you need to do when you apply. You’ll also be told how to provide your supporting documents if you need to.
Apply to update your visa
You must apply online.
Once you’ve started your application, you can save your form and complete it later.
Sign in to your account using the link from your sign-up email.
How long it takes to get a decision
You’ll usually get a decision within 8 weeks of your application date.
You’ll be contacted if your application will take longer, for example because:
your supporting documents need to be verified you need to attend an interview of your personal circumstances, for example if you have a criminal conviction
You may be able to pay to get a faster decision -you’ll be told if you can when you apply.
After you apply
If you need to change something in your application after you’ve sent it contact UK Visas and Immigration (UKVI).
You can ask to cancel your application. You’ll only get your fee refunded if UKVI has not started processing your application.
You’ll get an email or a letter containing the decision on your application. This will explain what you need to do next.

12. Switch to this visa

You might be able to apply to change (‘switch’) to a Skilled Worker visa if you’re already in the UK on a different type of visa.
Your partner or child’s visa will not automatically
switch to this visa if you switch yours. If they do not switch their visa, it will be valid until its original end date.
They can either apply at the same time as you, or at any time before their current visa expires.
Eligibility
You must not travel outside of the UK, Ireland, the Channel Islands or the Isle of Man until you get a decision. Your application will be withdrawn if you do.
You must meet the following requirements:
your job meets the eligibility requirements you can speak, read, write and understand English
Who cannot apply to switch to this visa
You cannot apply to switch to this visa if you’re currently in the UK:
on a visit visa

 on a short-term student visa 

on a Parent of a Child Student visa 

on a seasonal worker visa 

on a domestic worker in a private household visa 

on immigration bail because you were given permission to stay outside the immigration rules, for example on compassionate grounds
You must leave the UK and apply for a Skilled Worker visa from abroad if you’re in one of these categories.
Fees
Each person applying will need to pay:
the visa application fee the healthcare surcharge for each year of their stay - check how much you’ll have to pay
You’ll also need to have your biometric information (fingerprints and a photo) taken. There’s no fee for this.
If you’ve been in the UK for less than 1 year, you’ll also need to prove you have enough money to support yourself.
Proving your identity and providing supporting documents
As part of your application you’ll need to prove your identity.
How you do this depends on where you’re from and the type of passport you have.
You’ll either:
give your fingerprints and a photograph (biometric information) at a UK Visa and Citizenship Application Services (UKVCAS) service point - this is to get a biometric residence permit use the ‘UK Immigration: ID Check’ app to scan your identity document - you’ll also create or sign in to your UK Visas and Immigration (UKVI) account
You’ll be told what you need to do when you apply.
You must apply online before your current visa expires.
Once you’ve started your application, you can save your form and complete it later.
Sign in to your account using the link from your sign-up email.
How long it takes to get a decision
You’ll usually get a decision within 8 weeks of your application date.
You’ll be contacted if your application will take longer, for example because:
your supporting documents need to be verified you need to attend an interview of your personal circumstances, for example if you have a criminal conviction
You may be able to pay to get a faster decision -you’ll be told if you can when you apply.
After you apply
If you need to change something in your application after you’ve sent it contact UK Visas and Immigration (UKVI).
You can ask to cancel your application. You’ll only get your fee refunded if UKVI has not started processing your application.
You’ll get an email or a letter containing the decision
on your application. This will explain what you need to do next.
13. Taking on additional work
You can do additional paid work on this visa as long as you’re still doing the job you’re being sponsored for. You can also do unpaid voluntary work.
You can work up to 20 hours a week in a job that’s either:
in the same occupation code and at the same level as your main job in a shortage occupation
Check if your job is on the list of:
healthcare and education shortage occupations all other shortage occupations
If you’ll be working more than 20 hours a week or in a different occupation code
You’ll need to apply to update your visa so that you’re being sponsored to do both jobs.
You’ll need to:
get a new certificate of sponsorship from your second employer include a letter with your application explaining that you want to change your current permission to stay
 

All content is available under the Open Government Licence v3.0, except where otherwise stated
https://www.gov.uk/skilled-worker-visa/
© Crown copyright

Powerful Swiss central bank faces reform calls in terms of Credit Suisse rescue

 Credit Suisse Rescue

The Swiss National Bank is facing calls for an overhaul in its governance, with critics saying too much power lies in the hands of its chairman Thomas Jordan and that more transparency is needed.

The SNB played a major role in the state-sponsored rescue of Credit Suisse (CSGN.S) making 250 billion Swiss francs ($280 billion) of liquidity available to ease its takeover by UBS (UBSG.S).

In the wider economy, its monetary policy has led to it building up a balance sheet of nearly 900 billion Swiss francs – equivalent to 113% of Swiss economic output.

All that has raised concerns about the concentration of power in the SNB’s three-person governing board overseen by Jordan, smaller than the policy-making teams of other major central banks and one which retains a high level of discretion over its decision-making process.

Jordan, who has led the board since 2012, has stamped his authority on the central bank during a period where it has upended currency markets by scrapping the Swiss franc’s peg, and introduced the world’s lowest interest rates before joining others in tightening policy as inflationary pressures grew.

The governance concerns have been brought centre-stage by the search for a new member to replace Andrea Maechler, the first woman to serve on the SNB’s governing board.

She leaves at the end of June and calls are emerging for her to be succeeded by an independent, female candidate.

“With the current composition of the governing board of the Swiss National Bank I am worried there is a strong concentration of power in very few hands and a too powerful role of the chairman,” Celine Widmer, an MP for the left-leaning Social Democrats who has raised questions about the selection process to replace Maechler, told Reuters.

Widmer also advocated the expansion of the governing council from three members to five or seven and noted more generally there had been a “lack of questioning” about the role of the SNB in the rescue of Credit Suisse and what role it will play in banking regulation in future.

Her views were echoed by members of other parties.

“Probably extending the governing council from three to five members is a good idea,” said Christian Luscher, an MP the centre right Free Liberals, a former president of parliament’s economy committee, who said the matter should be considered.

Green Party MP Gerhard Andrey, a current member of parliament’s finance committee, said the SNB’s current structure was not “much different than it was 100 years ago.”

“Although the SNB has done a pretty good job to stabilize prices and inflation..it needs to evolve and have more diversity to tackle the upcoming challenges,” said Andrey.

The Swiss parliament would have to approve any expansion of the SNB’s board.

CLOSED DOORS

While past ECB chiefs like Mario Draghi have faced criticism for forcing through their views, current boss Christine Lagarde has said her role is to forge consensus among the euro zone’s 26 policy-makers.

ECB presidents regularly go before the European Parliament to explain the bank’s policies and published accounts of its internal discussions acknowledge when there have been disagreements, albeit without naming policymakers.

The Bank of England also publishes detailed minutes of its monetary policy discussions and reveals the spread of views on rate decisions. Its policy-makers face sometimes aggressive questioning by parliamentary committees.

Although the SNB meets regularly with government ministers and committees, this takes place behind closed doors and the bank does not publish minutes of its decisions.

The bank, which holds its shareholders meeting on Friday, said it saw “no advantage” in expanding its governing council.

“From the SNB’s point of view, this organizational form has proven its worth, promoting intensive and efficient discussions with rapid decision-making,” the SNB said.

Still, the SNB Observatory, a group of economists set up to stimulate a debate about the SNB, has suggested that the small committee meant the central bank was susceptible to group think.

Yvan Lengwiler, from the University of Basel, said too many SNB officials spent their entire careers at the central bank, a particular risk in the cases of Jordan and his deputy Martin Schlegel who have been there all their working lives.

“They are both highly competent, but it is a bubble, they have no outside experience,” Lengwiler said. “There really needs to be term limits.”

Such views are not shared universally. Thomas Stucki, a former head of asset management at the SNB, said it was typical for central bank chairmen to dominate decision-making.

“There is no doubt that Thomas Jordan is a strong personality, but he is the chairman, the one who carries the can for the SNB’s decisions,” said Stucki, who is now chief investment officer at St Galler Kantonalbank.

His views were echoed by Hannes Germann, an MP with the right-wing Swiss People’s Party, who saw no reason for an overhaul. He argued some of the reforms being aired could backfire, making the bank more susceptible to outside influence and less efficient in maintaining price stability.

“An expansion of the board contains the risk of  less independence of the board versus politics,” he said. “Less independent central banks usually lead to higher inflation rates in the long run.”

Insurance Company TPLI’s acquisition of target insurance company approved

TPLI had welcomed Finnfund, a major development financier and impact investor in Finland, with their acquisition of 17.59% shareholding in the Company. Previously, in April 2021, DEG (Deutsche investitins-und Entwicklungsgesellschaft mbH), a wholly owned subsidiary of KfW Group, Germany had acquired 19.9% shareholding in the Company. With a strong capital base and encouragement from foreign investors, the IFS rating of the Company stands at AA by PACRA.

On April 26, 2023 the Pakistan Stock Exchange (PSX) announced that TPL Insurance Limited (“TPLI”), a subsidiary of TPL Corp Limited (“the Company”), had accorded its approval for the acquisition of operations of a significant insurance player in the Pakistani market (“Target Company”).

This will be done through the scheme of amalgamation, to be sanctioned through the High Court. After its sanctioning, the net assets of the Target Company will be merged into the TPLI. Both the sanction and transaction are expected to be completed by December 31, 2023.

TPLI was launched as a general insurance company in Pakistan. It launched innovative Insurance products to increase its market share all over the country through creative marketing tactics.

TPL Insurance is also part of a larger corporation, TPL Corp, the holding company. (In 2017, TPL Trakker Limited was renamed TPL Corp Limited, which now controls TPL Insurance and so on, while the data location and tracking services were incorporated into a separate company, called TPL Trakker Ltd).

 

The great life insurance business in Pakistan

 

INSURANCE 

A customer described to us a typical way insurance is sold in Pakistan. He walked into his main bank branch for unrelated work regarding his bank account. After wrapping up his work, an agent walked up to him about a ‘saving investment scheme’. The agent made a pitch about getting high returns after a few years, after depositing a sum of Rs200,000. The customer thought it sounded like a good idea, and was also told that, by the way, this comes with some insurance benefits.

The customer also assumed the agent was a bank employee, and went along with the scheme, as after all, he trusted his bank. He was told, again in passing, that he might not be able to access that Rs200,000 sum for a few months, but this was not made super clear to him. This would become a problem, because a few months later, during a financial crunch, he asked to get his money back. Whoops – that money was actually stuck in a life insurance scheme, and he would have to wait five years to access it.

Almost everything about this anecdote is typical of how insurance is sold – that is, it is not sold as insurance. In fact, it is sold as an investment vehicle.

Therein lies one among the many problems facing the insurance sector in Pakistan: the industry does not know how to sell its own product and has hence routinely relied on providing misleading information to its customers and highly skewed incentives to its employees and distributors.

This embellishment of the truth that can often veer into outright lying on the part of some insurance salespersons is unlikely to do the industry any favours in a country where the overwhelming majority of people have never even considered getting insurance for themselves for any purpose.

We do not say this lightly. But it is a fact: that the penetration of the insurance industry in Pakistan is absurdly low, even when compared to other countries with similar per capita income. In 2019, the insurance penetration in Pakistan was at 0.9% of the gross domestic product (GDP, or the total size of the economy). This is much lower than India’s penetration, at more than 3.6%, the region’s average of 2.2%, the emerging markets average of 3.2%, and the global average of 6.3%. Before one despairs, that figure is still a massive improvement on what it was previously: in 2012, it stood at a measly 0.67%.

Which leads to the obvious question: what happened? Why are we struggling to insure 200 million Pakistanis? And whose fault is this? This, primarily, is a story of nationalization, lost time, lazy selling, and desperate attempts to change how Pakistanis change their spending habits (and that is harder than you think).

History of insurance in Pakistan - How Insurance Started

In the great annals of insurance ads (bear with us), the ad ‘Ae Khuda Meray Abu’ from the 1980s has achieved some kind of cult gold status. It is included in the kind of YouTube suggestions for ‘PTV nostalgia’ or ‘old evergreen ads’, the kind featured in boomer longing for purana Pakistan.

In the ad, a 10 year old, complete with barrettes, clasps her hands and sings ‘Ay Khuda mere Abu, salamat rahay’ (Dear God, keep my father safe). The reason for her joy: turns out the very mustachioed Pakistani-looking father has bought an insurance policy. The daughter then hugs her beaming parents and the ideal, insured Pakistani family go out on a family outing on a paddle boat. Reminiscent of old wedding videos, the daughter’s head then floats about on the screen, still singing, along with a rotating State Life logo. The final frame freezes on the paddle boat, and the voice over reminds us: “the guarantor of your future: State Life.”

Almost every source we have contacted for this story asked if I remembered this iconic ad. [Aside: I did remember it, only because it was my parents who discovered it again on YouTube – thanks “PTV nostalgia”]. But we asks you, the reader, if you remember this ad, because here is what we posit: that this ad was the last innovative thing that the insurance industry of Pakistan ever accomplished in marketing before resorting to outright misinformation.

The two biggest insurance players in Pakistan have traditionally been EFU Insurance, and Adamjee Insurance. EFU was set up in 1932, by businessman Ghulam Mohammad in Calcutta, with financial assistance from the Aga Khan III and the Nawab of Bhopal. The company then switched over to Pakistan after Partition. Meanwhile Adajamjee Insurance was set up in 1960, by the industrial family of the Adamjees, whose conglomerate has existed since 1896. 

Now back to that ad, commissioned by State Life. Today, State Life insurance is the largest life insurance company in Pakistan. But it was not always that way. In 1972, 32 insurance companies were forcibly nationalised, and folded into one State Life Insurance under Prime Minister Zulfikar Ali Bhutto and PPP’s nationalization agenda.

EFU then operated solely as a general insurance company, and was subsequently renamed EFU General Insurance Ltd. Today, the company is owned by the JS Group. 

The state of affairs would stay this way, until 1992, when private insurance players were allowed back in the game, under then Prime Minister Nawaz Sharif, and his privatisation process. This allowed for players like Jubilee Life Insurance, which was incorporated in June 1995. The company is a subsidiary of the Aga Khan Fund for Economic Development.

Today, Pakistan has 36 insurance companies, of which seven are life insurance companies. Those seven life insurance companies have a disportionate hold on the entire industry, accounting for around 63% of total gross premiums. The total size of the industry is Rs308 billion. 

The three major companies – EFU Insurance, Adamjee Insurance (which is now part of the Nishat Group, the conglomerate owned by Mian Muhammad Mansha) and Jubilee – have maintained a quasi triopoly on the market. 

Among life insurance, the largest player is State Life with a 50% market share, followed by Jubilee Life, then EFU Life, and then Adamjee Life (a subsidiary of Adamjee Insurance). In the general insurance, or non-life insurance space, Adamjee dominates with a 26% share, followed by EFU General Insurance at 24%, and Jubilee General Insurance at 12%.

Despite the low penetration rate, on the bright side, the gross premiums of Pakistan’s entire insurance industry has a five-year compounded annual growth rate (CAGR) of 17.7%, from Rs136.3 billion in 2013, to Rs308 billion in 2018. Life insurance has a CAGR of 17.5% while non-Life grew at a relatively lower CAGR of 9.6%.

According to Nilofer Sohail, assistant general manager at EFU Life, and head of digital initiatives there, it is a miracle that these three companies even exist to begin with. 

“These companies basically started from nothing, around 1994, to grow into what they have become today,” she says. Consider: State Life has a network around 80,000 to 90,000 agents across the country. EFU has only 7,000, Adamjee around 1,000 and Jubilee around 4,000. According to Sohail, that stark contrast in numbers can be attributed solely to the lost years of nationalisation. 

But the insurance industry has also grown in fits and spurts. Since the 1990s, there have been two big ‘nudges’. The first nudge happened in the early 2000s, when bancassurance as a concept really took off. Bancassurance is when a bank and an insurance company form a relationship to offer insurance products to the bank’s customers, and split the commissions.

Sohail says the advent of foreign banks in Pakistan, like Standard Chartered and ABN Amro, had successfully introduced the concept in other markets, and decided to try it out in Pakistan. It was wildly successful. Consider that bancassurance accounts for 88% of gross premiums in Jubilee, 90% in Adamjee Life, and 60% in EFU Life.

The second big ‘nudge’ happened in the late 2010s, and is continuing to this day. This is when microfinance banks really took off, and the State Bank of Pakistan (SBP) and the Securities and Exchanges Commission of Pakistan (SECP) both heavily pushed digital payments as a solution.For decades, insurance companies had been targeting, middle income and above. 

According to Sohail, that meant those earning around Rs70,000 to Rs80,000 a month. In the last three years there has been a definitive switch. “No one was thinking of Rs25,000 or Rs50,000,” says Sohail. She says people were still thinking in terms of ‘cheques’. Digital payments have allowed insurance companies to suddenly think of people who can pay Rs2,000 or Rs3,000 per month, and in some cases, like EFU’s partnership with Easy Paisa, as little as Rs1 or 2.

The challenge is not necessarily innovation – almost every company is trying out new and interesting ways of selling insurance. The problem is that the main channel through which insurance is sold – third party agents at banks – needs to be broken.

Misselling - Insurance

Look back at the earlier split of the insurance industry – almost 63% is dominated by life insurance, while the remaining by general insurance. In developed markets, the inverse is true – life insurance is a minority. But Pakistan, like other emerging countries, continues to rely on life insurance. 

For Muhammad Aminuddin, the CEO of TPL Insurance, the way life insurance is sold is a big problem. “This becomes a structural issue, and then also a knowledge issue,” he says.

Because people are not informed of how insurance works, they often begin to view insurance as something that will give returns, with insurance as a side benefit, as opposed to what it actually is – a way of mitigating risk.

“People view life insurance, as oh, banda mara nahi hai, I guess there’s no point. [They then want their money back] They don’t understand that it’s like if your house isn’t robbed, does that mean you ask for your chowkidaar’s salary back?” says Aminuddin.

Industry sources say the problem of mis-selling is rampant. The problem has nothing to do with education level, or socioeconomic level. One insurance executive said he had both his finance friends come up to him, to his driver’s sister, whose money was stuck in a similar insurance scheme for three years.

And it almost becomes like a chicken and egg problem: bank agents sell insurance in this manner to customers, who then believe the lie of (insurance = investment), who then do not buy or understand other types of insurance, so insurance companies continue to sell insurance as if its an investment in order to make sure customers still buy it – and so on ad infinitum.

This can lead to a trust deficit. Because customer’s money is stuck in insurance, they also are less inclined to tell their friends or family about buying insurance, instead viewing the entire industry as a nuisance. 

So why do banks and insurance companies go along with it? Well, because the commissions are extraordinarily high, touching 55% of total premiums in some cases. This stands in contrast to commissions in other countries, which are considerably better regulated, with some markets having commissions restricted to even 5-10%.

 mis-selling is common because it does not really affect profits, it allows insurance companies to be replaced, and it allows this bancassurance system to remain unchallenged, and in some cases, uninnovative. 

To be fair, the SECP has recently become aware of this problem in the last two to three years. According to Sohail, every agent must now call back customers and ask seven or eight scripted questions about whether the customer has understood the terms of the insurance product. These also now include several references to the fact that money might be stuck in the insurance products for some years, before it can be accessed.

“The complaints ratio has now fallen to 1 to 2%,” claims Sohail, saying that was a normal rate for any industry.

Cultural norms and awareness to promote Insurance

Before the interview with Sibtain Jiwani, the founder of insurance startup Smartchoice, even began, he asked: “Do you have insurance?” I did not. But I am not unusual, as Jiwani pointed out, because not only did I not have insurance, but neither did my friends, nor my cousins, nor had it ever been a family topic of discussion. This is emblematic of the typical Pakistani experience: insurance as a conversation or a feature of our lives simply does not exist.

The problem with insurance companies is not just their lazy attitude towards getting profits. They also did a lousy job of advocating for insurance. And they desperately need to, if they are ever going to combat how Pakistanis view protecting themselves.

“India is not really a comparable market,” says Aminuddin. “The savings abilities of India is much higher whereas Pakistanis are very ‘live it up, don’t’ worry about it. We are a very consumption-based economy”.

That attitude plays into how we view the future. “There is no awareness of risk mitigation, and therefore it is faith-based. Our idea of insurance is a kala dhaga, and the Ayat ul Kursi,” he says drily. 

This is unfortunate, because events such as the COVID- 19 pandemic have shown how crucial insurance can be in solving financial challenges. “When you have health insurance, you don’t have to raise money from your mohalla, or bemoan and say you are destitute,” said Aminuddin. 

Jiwani also brought up India as a comparison. “India is way ahead of us in terms of financial literacy, and there is also a lot of domestic travel for work within the country,” says Jiwani. As more and more young Indians settle in different cities, they often have financial responsibilities thrust upon them earlier in life. 

Jiwani, who is in his mid-30s, said he did not think really about managing money or a household until he was 28. “Financial responsibility comes a lot later in Pakistan,” he says, which explains why people simply do not factor in insurance, whether that is life, house or car.

Jiwani is hopeful that this attitude is changing, as more young Pakistanis are self-employed and working as freelancers, and typically even have some money saved on the side during university. But are insurance companies thinking of reaching out to a new generation? And what if they were just forced to?

The government’s role to play in Insurance Sector

A lot of insurance companies’ lives would be made a lot easier, if it was simply mandatory to buy insurance. That would automatically increase the number of Pakistanis insured – and it would solve the problem of Pakistanis not knowing what insurance exactly is.

Pakistan is unusual in many ways for not mandating insurance for large purchases. Take car insurance for example. It is not just the fact that car insurance is not mandatory in Pakistan – it is the fact that up until 15 years ago, the industry barely existed. As Aminuddin describes, the motor insurance industry came about, again, because of a ‘nudge’. In the turbulent Karachi of the mid 2000s, carjacking was on the rise, and companies like TPL Insurance sought to sell motor insurance.

The regulator could easily make this mandatory, but chooses not to. “The legal infrastructure is there, but the implementation has been lacking,” according to Aminuddin. “NADRA has the single largest database at its fingers –  enforcing it would be a breeze – but it’s about priorities.”

Jiwani says it could be easy to make car insurance mandatory, as it already is in India and the UK. “Every time you buy a car you have to have third party insurance,” he says,” You could pay Rs2,000, Rs3,000 per month for third party insurers – not only do you protect citizens from accidents, but you could get more people involved in insurance.”

For Jiwani, the net spillover effect is very real. “You’ll get people in the mindset of insurance. If an insurance company is paying for damages, then road par fazool jhagray will stop happening.”

That spillover effect could happen at the workplace, for instance. If the government mandated that all employers must provide their employees health insurance, then it would become a social responsibility. If an employee can see the benefit of receiving insurance when someone else is paying for it, he or she might be incentivised to then consider buying life insurance for their family. “You can alway bring more people into the insurance ecosystem, but you have to give them a reason”, says Jiwani. 

If the plan is so great, why has the government not done it yet? According to Sohail, for the last few years, the SECP has annually gone to the Ministry of Finance to ask them to consider changing insurance laws. And every year, the answer is the same – the government of Pakistan is concerned about burdening the taxpayer. In a country as poor as Pakistan (so the government’s thinking goes), can Pakistanis afford to pay insurance premiums?

The future of Insurance Business

So what does the future hold for the insurance industry, if government-mandated insurance is not on the cards yet? Well, that depends. For some, the future of insurance will be defined by insurance companies aggressively pursuing the consumer sector, in an attempt to get maximum coverage. So far, non-life insurance companies had been courting corporate clients. That is set to change. 

Or perhaps the future will look a little like what Jiwani is attempting with Smartchoice. The insurance startup, only a few years old, serves as a comparison website for different insurance products and policies. Smartchoice has partnered with 10 different insurance companies, and customers can buy different types of insurance by simply comparing different policies. The agent in this scenario becomes obsolete. 

“Insurance companies are coming to the realisation that alternative channels exist, that you can make innovative products which are bitesize,” says Jiwani. “More millennials are entering the workforce, and saving and investing money – insurance can help in protecting your future from uncertainty.”

To get there though, might be a bit of an uphill struggle. Pakistan’s insurance industry will have to finally get on the digital payments bandwagon, stop their overreliance on agents, and spend extra time and effort educating their customers. The days of “Ay Khuda Mere Abbu’ should finally be left behind.

 

 

 

 

 

Australia to change immigration system ensuring smooth entry for skilled workers

Australia proposed on Thursday overhauling its immigration system to speed up getting highly skilled workers into the country and smoothening the path to permanent residency.

The federal Labor government said the current system used to select skilled migrants — the points test — will be modified to identify people with the correct skill sets the Australian economy needs going forward.

“Our migration system is broken. It is failing our businesses, it is failing migrants themselves. And most importantly, it is failing Australians. That cannot continue,” Home Affairs Minister Clare O’Neil said in a speech at the National Press Club.

Australia has been competing with comparable countries, like Canada and Germany, to lure more skilled migrants, with the surge in demand exacerbated by an ageing population.

The government said the visa process for high-skilled professionals will be made quicker and easier, while steps would be taken to retain international students.

Temporary skilled visa holders, who had been denied even the opportunity to apply for permanent residency, will be able to do that by the end of this year, O’Neil said. But it will not add to Australia’s annual intake of permanent migrants, she said.

In September, Australia raised its intake of permanent migrants to 195,000 this financial year, up by 35,000, to help businesses battling widespread staff shortages and pledged more staff and funds to speed up visa processing.

From July 1, the government said it would raise the migrant wage threshold of temporary skilled workers to A$70,000 ($46,250) from A$53,900, stuck at the same level since 2013.

Around 90 percent of all full-time jobs in Australia are now paid more than the current threshold, leading to the exploitation of migrant workers, the government said.