MAC recommendation to have adverse impact on Indian IT cos

The recommendations of Migration Advisory Committee (MAC), if accepted by the UK government, will have adverse impact on the competitiveness of the Indian IT companies in Britain, Parliament was informed today.
Communications and IT Minister Ravi Shankar Prasad said the financial impact of these measures would be in excess of 250 million pound each year for the Indian IT companies.
The UK government commissioned the MAC last year to advise them on significantly reducing the level of skilled economic migration from outside the European Union entering through Tier-II visa route.
Prasad said the report prepared by MAC was released on January 19, 2016, and under the consideration of the UK government.

"Department of Commerce, Ministry of Commerce and Industry, Government of India have already taken up the matter with the UK in this regard," Prasad said in a written reply to Lok Sabha.
He said the UK is the second largest export market for the Indian IT-ITeS companies.

"If the MAC recommendations are accepted by the UK government, it would have an adverse impact on the competitiveness of Indian IT companies in the UK," he added.
The minister further said as per industry estimates, the financial impact of these measures would be in excess of 250 million pound each year for the Indian IT companies.

The main recommendations of MAC include creation of a new category for third-party contractors (IT firms) and increase the minimum salary threshold to 41,500 pound in respect of Tier-II ICT category (short term) from current 24,800 pound.
MAC recommends levying of immigration skill charge of 1,000 pound on all employers recruiting migrants under long-term and short-term Tier-II (ICT) categories. It also proposes to levy immigration health surcharge of 200 pound to ICT category including the dependents.
The MAC recommends increasing minimum work experience requirement for the ICT visa category from 12 to 24 months for both long-term and short-term categories.

"Sponsors to enter a more detailed description of the role required on the certificate of sponsorship application form to ensure that the role is sufficiently specialist," the recommendations said.