To secure a UK Skilled Worker visa, you must be paid at least the general salary threshold of £38,700 per year, the occupation-specific going rate, or £15.88 per hour, whichever is highest. Certain applicants qualify for lower thresholds through tradeable points, transitional arrangements, or health and education pay scales, provided their pay does not drop below statutory minimum floors. Sponsoring employers must structure remuneration packages strictly in accordance with Home Office calculation rules to avoid mandatory visa refusal.
The Core Salary Rules for the Skilled Worker Route
The Skilled Worker route operates under a points-based immigration system where applicants must score a mandatory 70 points to be granted permission to enter or stay in the UK. Of these 70 points, 50 are fixed attributes (a valid Certificate of Sponsorship, a job at an appropriate skill level of RQF Level 3 or above, and English language proficiency at level B1 CEFR), while the remaining 20 points relate to remuneration.
To satisfy the 20-point salary requirement, an applicant's remuneration must satisfy three distinct tests simultaneously:
- It must equal or exceed the applicable general salary threshold.
- It must equal or exceed the specific going rate for the occupation code under the Standard Occupational Classification (SOC) 2020 system.
- It must equal or exceed the statutory hourly rate floor of £15.88 per hour (or £11.90 per hour where transitional arrangements apply).
If the proposed pay fails even one of these three tests, the application cannot score the required 20 salary points. The Home Office caseworker has no discretionary power to overlook a salary shortfall, irrespective of the candidate's qualifications, the employer's operational urgency, or the size of the deficit.
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| PROPOSED SALARY CHECK |
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| Does the salary meet or exceed the relevant General |
| Threshold (e.g. £38,700 standard / £30,960 reduced)? |
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/ \
YES / \ NO
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| Does the salary meet or exceed the Occupation | | POINTS REFUSED: |
| Going Rate (e.g. 100%, 90%, 80%, or 70%)? | | Salary under floor|
+------------------------------------------------+ +-------------------+
/ \
YES / \ NO
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| Does the salary meet or exceed the | | POINTS REFUSED: |
| minimum hourly floor (£15.88/hr)? | | Below going rate |
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/ \
YES / \ NO
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| 20 SALARY POINTS AWARDED | | POINTS REFUSED: |
| Move to non-salary criteria| | Under hourly rate |
+----------------------------+ +-------------------+
The Three-Tier Salary Test Explained
The general threshold is a flat baseline salary applied across all standard occupations. Following major rule changes, this figure is set at £38,700 per annum for standard initial applications. However, this figure cannot be considered in isolation.
The going rate is the median annual wage (50th percentile) for a specific profession across the UK labour market, published in the Home Office occupation tables. Even if an employer offers £45,000 per year (well above the £38,700 general threshold), the application will be refused if the going rate for that specific occupation code is £48,000 per year and the applicant does not qualify for any tradeable discount.
The hourly rate check ensures employers do not circumvent annual salary requirements by inflating working hours. Under standard rules, the applicant must earn at least £15.88 for every contracted hour. An annual salary of £38,700 equates to £15.88 per hour only across an average 46.8-hour working week. If the employment contract specifies a 48-hour working week at £38,700, the effective hourly rate drops to £15.50 per hour, triggering an immediate refusal.
Calculating Allowable Earnings
When assessing whether a candidate meets the salary threshold, the Home Office takes a narrow view of what constitutes eligible pay. Only guaranteed, regular gross basic pay counts toward the calculation.
Caseworkers explicitly exclude the following components from threshold assessments:
- Performance bonuses, commission payments, and incentive structures;
- Overtime payments (whether guaranteed or voluntary);
- Shift allowances, night-working premiums, and on-call payments;
- Cost of living adjustments and location weightings (such as London Weighting);
- In-kind benefits, including accommodation, private medical cover, company vehicles, and school fees;
- Employer pension contributions and National Insurance contributions;
- Reimbursements for business expenses or relocation allowances.
If an employment contract specifies a basic annual salary of £35,000 alongside a guaranteed £5,000 annual performance bonus, the caseworker records the assessable salary as £35,000. Unless the applicant qualifies under a discounted tradeable points option, the application will be refused because the guaranteed base falls below £38,700.
The Tradeable Points System (Options A to K)
Under Appendix Skilled Worker of the Immigration Rules, an applicant who cannot meet the full £38,700 general threshold or the full 100% going rate may trade specific attributes (such as educational qualifications, occupation shortages, or new entrant status) for a lower financial requirement.
The tables below outline the options available under standard rules, health and education pay scale rules, and transitional provisions.
Standard Tradeable Points Options (Options A to E)
These options apply to standard applicants who were not granted permission on the Skilled Worker route before 4 April 2024.
| Option | Qualification / Condition | Minimum General Threshold | Going Rate Requirement | Minimum Hourly Rate Floor |
|---|---|---|---|---|
| Option A | None (Standard route) | £38,700 | 100% of occupation going rate | £15.88 |
| Option B | Relevant PhD (non-STEM) | £34,830 (10% discount) | 90% of occupation going rate | £15.88 |
| Option C | Relevant PhD in a STEM subject | £30,960 (20% discount) | 80% of occupation going rate | £15.88 |
| Option D | Job on the Immigration Salary List | £30,960 (20% discount) | 100% of occupation going rate | £15.88 |
| Option E | New Entrant to the UK labour market | £30,960 (20% discount) | 70% of occupation going rate | £15.88 |
National Pay Scale and Health Sector Options (Option F)
For applicants sponsored in eligible healthcare, social care, or education professions covered by national pay scales, the general threshold is substantially lower to reflect public sector pay frameworks.
| Option | Qualification / Condition | Minimum General Threshold | Going Rate Requirement | Minimum Hourly Rate Floor |
|---|---|---|---|---|
| Option F | Role listed in national pay scales table | £23,200 | Relevant national pay scale rate | Pay scale specific |
Transitional Tradeable Points Options (Options F to K / Pre-April 2024 Entrants)
Workers who have held continuous permission under the Skilled Worker or Tier 2 (General) route based on a Certificate of Sponsorship issued before 4 April 2024 benefit from lower baseline thresholds when extending, changing sponsors, or applying for settlement, provided they apply before 1 December 2030.
| Option | Transitional Condition | Minimum General Threshold | Going Rate Requirement | Minimum Hourly Rate Floor |
|---|---|---|---|---|
| Option F (Transitional) | Standard extension / change of employment | £29,000 | 100% of 25th percentile going rate | £11.90 |
| Option G | Relevant PhD (non-STEM) | £26,100 | 90% of 25th percentile going rate | £11.90 |
| Option H | Relevant STEM PhD | £23,200 | 80% of 25th percentile going rate | £11.90 |
| Option I | Job on the Immigration Salary List | £23,200 | 100% of 25th percentile going rate | £11.90 |
| Option J | New Entrant (Transitional) | £23,200 | 70% of 25th percentile going rate | £11.90 |
| Option K | Pay scale role (Transitional) | £23,200 | Relevant national pay scale rate | Pay scale specific |
The New Entrant Discount (Option E and Option J)
The New Entrant discount is one of the most widely used mechanisms for sponsoring junior professionals, graduates, and early-career specialists. It allows an employer to sponsor an individual at a 20% discount on the general threshold (£30,960) and a 30% discount on the occupation going rate (70% of the going rate), provided the hourly rate remains at or above £15.88.
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| NEW ENTRANT ELIGIBILITY CHECK |
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| Does applicant meet ONE of these criteria? |
| - Under 26 on date of application |
| - Switching from Student (completed/completing) |
| - Switching from Graduate visa |
| - Working toward recognised UK professional charter |
| - Postdoctoral research role in eligible SOC code |
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/ \
YES / \ NO
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| Will total cumulative time as New Entrant | | INELIGIBLE for |
| (including Student/Graduate leave) be <= 4 yrs?| | New Entrant rate. |
+------------------------------------------------+ | Standard threshold|
/ \ | applies. |
YES / \ NO +-------------------+
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| QUALIFIES UNDER OPTION E | | INELIGIBLE: |
| Threshold: £30,960 / 70% | | Exceeds 4-year max|
| going rate / £15.88/hr | | cumulative limit |
+----------------------------+ +-------------------+
Qualifying Criteria for New Entrant Status
To claim the 20 points under Option E, an applicant must satisfy at least one of the following five conditions:
- Age Threshold: The applicant is under the age of 26 on the date of the visa application.
- Student Route Switcher: The applicant's most recent grant of leave was as a Student, and they meet specific study completion milestones:
- They completed a course of study leading to a UK recognised bachelor's or master's degree;
- They completed a UK Postgraduate Certificate in Education or Professional Graduate Certificate in Education;
- They have completed at least 12 months of study in the UK towards a UK PhD.
- Graduate Route Switcher: The applicant's most recent grant of leave was under the Graduate route (or they currently hold Graduate leave).
- Professional Regulation or Chartership: The sponsored position leads directly to a recognised professional qualification in a profession regulated by UK law or one requiring full chartered status (for example, qualifying as a chartered accountant with ICAEW or ACCA, or an architect registered with ARB).
- Postdoctoral Researcher: The job offer is for a postdoctoral research role in an eligible academic, scientific, or research occupation code.
The Strict Four-Year Cumulative Limit
A critical restriction on New Entrant status is the statutory four-year cap. Under paragraph SW 12.3 of the Immigration Rules, an applicant cannot be granted permission as a New Entrant if the grant of leave would cause their total cumulative stay in the UK across any combination of the following routes to exceed four years (48 months):
- Time spent with leave on the New Entrant Skilled Worker route;
- Time spent with leave on the Graduate route;
- Time spent with leave under Tier 2 (General) as a new entrant.
Example Calculation: An applicant completed a master's degree and subsequently spent two years working in the UK on a Graduate visa. An employer now wishes to sponsor them under the Skilled Worker route using the New Entrant salary discount.
- Cumulative time already used on the Graduate visa: 2 years (24 months);
- Maximum remaining time allowable under the New Entrant provisions: 2 years (24 months).
If the employer issues a Certificate of Sponsorship requesting a 3-year visa term under Option E, the caseworker will refuse the application outright because 2 years + 3 years = 5 years, exceeding the 4-year statutory limit. To avoid refusal, the employer must either:
- Issue the Certificate of Sponsorship for a maximum duration of 2 years under Option E; or
- Sponsor the candidate under Option A (meeting the full £38,700 threshold and 100% going rate) for the desired 3-year term.
Calculating Salary Across Differing Working Hours and Working Patterns
The going rates published in the Home Office occupation tables are standardised on a 37.5-hour working week (unless otherwise stated in the occupation code description). If an applicant is contracted to work more or fewer than 37.5 hours per week, the going rate must be pro-rated accordingly.
Crucially, the general threshold (£38,700 for Option A or £30,960 for Option E) is an absolute annual floor and is never pro-rated downward for part-time work. Conversely, the going rate is pro-rated according to the actual contracted hours.
The Pro-Rata Formula
To determine the exact salary requirement for a given occupation code and weekly working pattern, use the following calculation process:
$$\text{Pro-Rated Going Rate} = \left( \frac{\text{Published Going Rate}}{37.5} \right) \times \text{Contracted Weekly Hours} \times \text{Applicable Discount (1.0, 0.9, 0.8, or 0.7)}$$
Once calculated, compare this figure against the absolute general threshold and the statutory hourly rate floor. The required salary is the highest of these three values.
Pro-Rata Case Studies Across Common Working Patterns
Scenario 1: Full-Time Professional on standard 37.5 hours (SOC 2134: Programmers and software development professionals)
- Published 100% going rate (37.5-hour week): £49,400
- Standard General Threshold (Option A): £38,700
- Hourly rate floor: 37.5 hours x £15.88 x 52 weeks = £30,966
- Required Salary: £49,400 per year. The going rate exceeds the general threshold, so the employer must pay at least £49,400.
Scenario 2: High-Hour Contract on 45 hours (SOC 2134: Programmers and software development professionals)
- Published 100% going rate (37.5-hour week): £49,400
- Pro-rated going rate for 45 hours: $(£49,400 / 37.5) \times 45 = £59,280$
- Standard General Threshold: £38,700
- Hourly rate floor: 45 hours x £15.88 x 52 weeks = £37,159.20
- Required Salary: £59,280 per year. The employer cannot pay £49,400; the going rate must scale up to reflect the 45 contracted hours.
Scenario 3: Part-Time Professional on 25 hours (SOC 2134: Programmers and software development professionals)
- Published 100% going rate (37.5-hour week): £49,400
- Pro-rated going rate for 25 hours: $(£49,400 / 37.5) \times 25 = £32,933.33$
- Standard General Threshold (Option A): £38,700 (absolute baseline; cannot be pro-rated)
- Hourly rate floor: 25 hours x £15.88 x 52 weeks = £20,644
- Required Salary: £38,700 per year. Even though the pro-rated going rate is £32,933.33, the annual pay cannot drop below the £38,700 general threshold. Consequently, for 25 hours per week, the employer must pay an effective hourly rate of £29.77 per hour (£38,700 / 25 / 52) to satisfy the rules.
Scenario 4: New Entrant on standard 37.5 hours (SOC 2424: Business and financial project management professionals)
- Published 100% going rate: £41,000
- 70% Going Rate under Option E: £41,000 x 0.70 = £28,700
- Reduced General Threshold under Option E: £30,960
- Hourly rate floor: 37.5 hours x £15.88 x 52 weeks = £30,966
- Required Salary: £30,966 per year. Although the 70% going rate is £28,700 and the general threshold is £30,960, the hourly rate floor of £15.88 requires £30,966 across 37.5 hours. Paying £30,960 would trigger a refusal due to a £6 annual shortfall.
Representative Going Rates Under the Standard System (SOC 2020)
The table below illustrates published going rates and minimum salary levels for selected occupations under the post-4 April 2024 rules (SOC 2020 classification). These rates reflect standard (Option A) and New Entrant (Option E) baseline requirements based on a 37.5-hour week.
| SOC 2020 Code | Occupation Title | 100% Going Rate (Option A) | Effective Option A Minimum | 70% Going Rate (Option E) | Effective Option E Minimum |
|---|---|---|---|---|---|
| 2134 | Programmers and software development professionals | £49,400 | £49,400 | £34,580 | £34,580 |
| 2135 | IT business analysts, architects and systems designers | £51,100 | £51,100 | £35,770 | £35,770 |
| 2424 | Business and financial project management professionals | £41,000 | £41,000 | £28,700 | £30,966 (hourly floor) |
| 1136 | Human resource managers and directors | £49,100 | £49,100 | £34,370 | £34,370 |
| 2121 | Civil engineers | £45,500 | £45,500 | £31,850 | £31,850 |
| 3545 | Sales accounts and business development managers | £40,000 | £40,000 | £28,000 | £30,966 (hourly floor) |
| 2211 | Generalist medical practitioners (non-pay scale private) | £62,200 | £62,200 | £43,540 | £43,540 |
| 3131 | Operations technicians (engineering/manufacturing) | £38,700 | £38,700 | £27,090 | £30,966 (hourly floor) |
| 1115 | Chief executives and senior officials | £84,100 | £84,100 | £58,870 | £58,870 |
Note: Where the 70% going rate falls below £30,966, the effective Option E minimum is rounded up to the statutory minimum product of 37.5 hours x £15.88 x 52 weeks (£30,966).
Step-by-Step Salary Assessment for Employers and Applicants
To ensure a Certificate of Sponsorship (CoS) is assigned without financial errors, sponsoring employers and legal representatives should follow this structured assessment protocol before assigning a CoS.
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| STEP-BY-STEP SALARY VERIFICATION PROTOCOL |
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| STEP 1: Identify correct SOC 2020 code matching genuine day-to-day duties |
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| STEP 2: Determine tradeable points route (Standard, PhD, ISL, or New Entrant) |
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| STEP 3: Confirm guaranteed gross basic salary (strip out bonuses and allowances) |
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| STEP 4: Calculate pro-rated going rate based on weekly contracted hours |
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| STEP 5: Conduct three-tier check (General Threshold vs Going Rate vs Hourly Rate) |
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| STEP 6: Input matching salary and weekly hours into the Sponsor Management System |
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Step 1: Identify the Correct SOC 2020 Code
Review the specific tasks and day-to-day duties of the prospective role against the Office for National Statistics (ONS) coding tool and Appendix Skilled Occupations. Sponsoring organisations must choose the code that most closely aligns with the actual job responsibilities, rather than selecting an artificial code merely because it carries a lower going rate.
Step 2: Establish the Tradeable Points Route
Determine whether the candidate must meet standard criteria (Option A) or qualifies for discounted tradeable points under Options B through E (or transitional Options F through J). If claiming Option E (New Entrant), calculate their total historical time spent on Student, Graduate, and Skilled Worker visas to confirm they have sufficient eligibility remaining under the four-year cap.
Step 3: Establish Guaranteed Gross Basic Pay
Review the employment contract or formal offer letter. Exclude all discretionary bonuses, performance incentives, overtime arrangements, and non-cash benefits. Isolate the gross guaranteed annual basic figure.
Step 4: Pro-Rate the Occupation Going Rate
Establish the applicant's exact contracted weekly hours. If the hours differ from 37.5 hours per week, apply the pro-rata formula to the published occupation going rate.
Step 5: Perform the Three-Tier Comparison
Compare the guaranteed basic salary against:
- The relevant general threshold;
- The pro-rated going rate;
- The statutory hourly rate (£15.88 multiplied by contracted weekly hours multiplied by 52).
The offered remuneration must meet or exceed the highest of these three figures.
Step 6: Assign the Certificate of Sponsorship
Input the exact guaranteed salary, weekly working hours, and correct tradeable points option into the Home Office Sponsor Management System (SMS). Ensure that explanatory notes are added in the 'Sponsor Notes' field if the applicant is relying on complex tradeable points (such as relevant PhD qualifications or professional chartership pathways).
Evidentiary Requirements and Caseworker Assessment Protocols
Home Office caseworkers assess salary compliance by cross-referencing information stated on the Certificate of Sponsorship against supporting documentary evidence submitted by the applicant, and records held by HM Revenue and Customs (HMRC).
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| CASEWORKER SALARY AUDIT VERIFICATION FLOW |
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| CoS Review: Inspect Gross Basic Pay, Working Hours, and Selected Option Code |
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| Automated HMRC Data Check: Interrogate Real Time Information (RTI) PAYE records |
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| Contractual Audit: Cross-examine Employment Contract, Payslips, and Bank Records |
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| Genuineness Assessment: Compare duties and market pay against industry benchmarks |
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Core Evidence Required for In-Country Applications
When an applicant is already working in the UK and applying for an extension, change of sponsor, or settlement, caseworkers routinely request:
- Payslips: Official payslips covering up to the three most recent consecutive months. Electronic payslips are acceptable if generated from an official payroll portal or accompanied by a letter from the sponsor on company letterhead confirming authenticity.
- Bank Statements: Personal bank or building society statements corresponding to the exact dates of the submitted payslips, showing the net salary deposited directly by the licensed sponsor.
- HMRC Real Time Information (RTI): Caseworkers have real-time automated access to HMRC PAYE records. If the earnings reported to HMRC by the employer do not match the salary declared on the Certificate of Sponsorship, the application will be paused and investigated for non-compliance.
- Employment Contract: A signed contract of employment specifying the job title, SOC code, guaranteed basic hours of work, overtime terms, holiday entitlements, and gross basic remuneration.
Documentary Evidence for Discounted Options
- PhD Qualifications (Options B and C): The applicant must provide their original degree certificate, an academic transcript, or a formal letter from the awarding institution. In addition, the employer must submit a detailed written justification explaining precisely how the doctoral qualification is directly relevant to the sponsored job role. If relying on Option C (STEM), the Certificate of Sponsorship must confirm the STEM qualification subject.
- New Entrant Chartership (Option E): If claiming new entrant status based on professional qualifications, the employer must provide documentary evidence showing that the applicant is registered with the relevant UK statutory regulator or chartered professional body (for example, ICAEW, SRA, ICE, or RIBA) and actively working toward full chartered or regulated status.
What Caseworkers Look At
During assessment, caseworkers focus heavily on:
- Genuineness of the Role: Under paragraph SW 5.5, caseworkers evaluate whether the role is a genuine vacancy. If an employer inflates a job description or assigns an inappropriate SOC code with a lower salary threshold simply to help an applicant qualify, the application will be refused under genuine vacancy rules, and the sponsor licence will be placed under investigation.
- Salary Package Composition: Caseworkers inspect payslips for itemised payments. If gross pay includes non-qualifying elements (such as car allowances or variable bonuses) to reach the required threshold, these components are subtracted from assessable pay.
- Consistency Across Systems: The salary figure on the CoS, the salary in the employment contract, the net pay on bank statements, and the gross earnings submitted to HMRC via RTI must reconcile precisely.
Common Mistakes and Mandatory Refusal Triggers
Salary-related refusals under the Skilled Worker route almost always stem from technical miscalculations or misunderstanding how earnings are defined under Home Office rules.
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| CRITICAL SALARY ERRORS CAUSING VISA REFUSAL |
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| 1. Packaging bonuses, allowances, or London weighting into the baseline salary |
| 2. Failing to pro-rate the going rate for contracts exceeding 37.5 hours per week |
| 3. Breaching the 4-year cumulative limit on New Entrant status (Option E) |
| 4. Pro-rating the General Threshold downward for part-time work |
| 5. Falling foul of the statutory £15.88/hour absolute floor on long-hour contracts|
| 6. Mismatch between CoS gross figures and HMRC Real Time Information (RTI) records|
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1. Inclusion of Discretionary and Non-Guaranteed Allowances
Employers frequently structure remuneration packages with a basic salary plus allowances (such as a £34,000 base salary plus £5,000 guaranteed London weighting). Sponsoring employers mistakenly enter £39,000 on the CoS. Caseworkers will disregard the £5,000 allowance, assess the salary as £34,000, and refuse the application under Option A for failing to meet the £38,700 threshold.
2. Failure to Pro-Rate for Extended Hours
Many full-time employment contracts specify standard working weeks of 40, 42.5, or 48 hours. Employers often look up the published going rate for 37.5 hours (for example, £45,000) and pay exactly £45,000 for a 45-hour contract. For a 45-hour contract, the pro-rated going rate is £54,000. Paying £45,000 creates an unresolvable £9,000 shortfall, leading to a mandatory refusal.
3. Miscalculating the Four-Year New Entrant Limit
Assigning a Certificate of Sponsorship under Option E for a 3-year term to a candidate who has already spent 2 years on a Graduate route visa is a recurring administrative error. Because the total duration would reach 5 years, the caseworker will refuse the application outright rather than shortening the visa term automatically.
4. Pro-Rating the General Threshold for Part-Time Roles
Employers assuming that a part-time employee working 20 hours per week only needs to earn a pro-rata portion of the £38,700 general threshold (e.g. £20,640) will trigger a refusal. While the going rate pro-rates downward, the general threshold does not. A part-time worker must always earn at least £38,700 in absolute gross terms under Option A.
5. Overlooking the Hourly Rate Minimum Floor
When calculating discounted salary rates under Options B, C, D, or E, employers often apply the percentage discount (such as 70% or 80%) to the annual going rate without checking the statutory hourly floor. If the resulting figure equates to less than £15.88 per hour, the visa will be refused. Every contracted hour must be paid at or above £15.88.
Edge Cases and Specific Scenarios
Applying salary rules becomes significantly more complex when dealing with transitional arrangements, absences from work, switching visa routes, and sponsor reporting duties.
Transitional Arrangements for Pre-April 2024 Visa Holders
Workers who were granted permission under the Skilled Worker route (or Tier 2 General) based on a Certificate of Sponsorship issued before 4 April 2024 are subject to transitional protections. These protections remain in place for applications submitted before 1 December 2030.
Under transitional rules:
- The standard baseline general threshold is £29,000 (under Option F Transitional), rather than £38,700.
- The going rates are based on the 25th percentile of the occupation code earnings rather than the 50th percentile median.
- The statutory hourly rate minimum is £11.90 per hour, rather than £15.88.
- These transitional baselines apply when the worker extends their visa with their existing sponsor, changes to a new sponsor, or applies for indefinite leave to remain (settlement).
If a pre-April 2024 visa holder changes their occupation code to a different profession, they can still rely on the transitional general threshold of £29,000, but their pay must meet the 25th percentile going rate for that new occupation.
Salary Calculations for Settlement (Indefinite Leave to Remain)
When a Skilled Worker applies for Indefinite Leave to Remain (ILR) after five years of continuous lawful residence, they must meet strict salary requirements under paragraph SW 24.1:
- Standard Applicants: Must be paid at least £38,700 per year, or the 100% going rate for their occupation code, whichever is higher, and at least £15.88 per hour.
- Transitional Applicants: If the applicant's initial Skilled Worker CoS was assigned before 4 April 2024, the settlement threshold is £29,000 or the 25th percentile going rate, whichever is higher, and at least £11.90 per hour.
- Former New Entrants / Shortage Roles: Settlement rules do not allow the permanent use of new entrant or shortage discounts. An applicant who was sponsored as a New Entrant during their temporary permission must have their pay increased to meet the full going rate and general threshold by the time they apply for ILR.
The sponsor must issue a formal letter confirming that the applicant will continue to be employed for the foreseeable future and will be paid at or above the required threshold on the date of the settlement application.
Reductions in Salary and Unpaid Absences
Under Appendix Skilled Worker, if a sponsored worker's salary is reduced below the threshold recorded on their Certificate of Sponsorship, specific compliance rules apply:
- Permanent Salary Reductions: An employer may reduce a sponsored worker's salary only if the new reduced remuneration still satisfies the relevant salary threshold and going rate rules that applied when the worker made their last visa application. The employer must report the reduction via the Sponsor Management System within 10 working days.
- Prohibited Reductions: If a salary drop causes earnings to fall below the general threshold, the going rate, or the hourly floor, sponsorship must be withdrawn, and the visa will be curtailed, unless an exception applies.
- Permitted Unpaid Absences (Paragraph SW 18.1): A sponsored worker's pay may temporarily fall below the required threshold if the reduction coincides with an authorised period of unpaid absence for:
- Maternity, paternity, shared parental, or adoption leave;
- Sick leave lasting up to 4 continuous weeks, or longer where supported by medical evidence;
- Assisting with an overseas humanitarian or environmental crisis;
- Taking part in strike action organised by a recognised trade union.
If a sponsored worker takes unauthorised unpaid leave exceeding 4 weeks in total in any single calendar year (excluding the statutory exceptions above), the employer is legally obligated to stop sponsoring the worker and notify the Home Office.
Switching from Other Visa Categories
Different rules govern individuals switching into the Skilled Worker route from within the UK:
- Switching from Student: Students may switch into the Skilled Worker route before completing their degree, provided the employment start date is after the course completion date, or they have been studying for a PhD for at least 24 months. They are eligible for Option E (New Entrant) salary discounts.
- Switching from Graduate: Graduate visa holders can switch to a Skilled Worker visa at any point during their valid permission. They are eligible for Option E, provided their cumulative time on the Graduate and Skilled Worker routes does not exceed four years.
- Switching from Youth Mobility Scheme / Working Holiday: YMS visa holders can switch into the Skilled Worker route from within the UK. If they are under 26 on the date of application, they may use Option E.
- Ineligible Routes for Switching: Individuals holding leave as a Visitor, Short-term Student, Seasonal Worker, or Parent of a Child at School cannot switch into the Skilled Worker route from within the UK. They must leave the UK and submit an entry clearance application from abroad.
Dependants and Financial Threshold Interactions
Skilled Worker salary thresholds are distinct from the Minimum Income Requirement (MIR) for family visas under Appendix FM. When a Skilled Worker sponsors dependants (a partner or children) under Appendix Skilled Worker:
- The Skilled Worker route does not impose the Appendix FM family income threshold on the applicant.
- Instead, the Skilled Worker must meet the core salary requirements for their occupation code and provide evidence of maintenance funds (£285 for a dependent partner, £315 for the first child, and £200 for each subsequent child), unless the sponsor certifies maintenance on the Certificate of Sponsorship.
- Sponsoring dependants does not require the main applicant's salary to increase above the standard Skilled Worker thresholds.
Summary of Application Fees and Associated Costs
When planning sponsorship, employers and applicants must account for total visa processing and statutory levies alongside the salary commitment.
| Item | In-Country Application (Switch / Extension) | Out-of-Country Application (Entry Clearance) |
|---|---|---|
| Visa Application Fee (Up to 3 years) | £827 per person | £719 per person |
| Visa Application Fee (More than 3 years) | £1,636 per person | £1,420 per person |
| Visa Fee: Immigration Salary List (Up to 3 years) | £551 per person | £551 per person |
| Visa Fee: Immigration Salary List (More than 3 years) | £1,102 per person | £1,102 per person |
| Immigration Health Surcharge (IHS) | £1,035 per year of visa | £1,035 per year of visa |
| Certificate of Sponsorship (CoS) Fee | £239 | £239 |
| Immigration Skills Charge (Small / Charity Sponsor) | £364 per year of sponsorship | £364 per year of sponsorship |
| Immigration Skills Charge (Medium / Large Sponsor) | £1,000 per year of sponsorship | £1,000 per year of sponsorship |
Practical Next Steps
Navigating salary thresholds requires precise calculations before assigning a Certificate of Sponsorship. Sponsoring employers and candidates should review the steps below to ensure full compliance:
- Audit Job Duties and Standard Occupational Classification: Match the actual daily responsibilities against the SOC 2020 occupation code to establish the exact baseline going rate.
- Check Tradeable Points and Eligibility Caps: Confirm whether the candidate relies on Option A, Option E, or transitional arrangements, and verify any cumulative time limits on New Entrant leave.
- Calculate Pro-Rata and Hourly Floors: Reconcile gross guaranteed basic pay against the contracted weekly hours to confirm the package satisfies the annual threshold, the going rate, and the £15.88 hourly floor.
- Review Draft Sponsorship Data: Ensure figures entered into the Sponsor Management System align completely with the employment contract, payroll records, and HMRC reporting before submission.
Reviewed by Wesbridge Associates team on . We check our published guidance against GOV.UK and current Home Office rules.
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