To secure a UK Skilled Worker visa, you must be paid a salary that meets or exceeds three separate benchmarks: the general annual salary threshold, the occupation-specific going rate, and the minimum hourly rate floor. Following major immigration rule changes, the standard baseline general salary threshold is £38,700 per year, and your pay must equal at least £15.88 per hour alongside 100% of the going rate for your Standard Occupational Classification (SOC) code. Lower salary thresholds apply only if you qualify for tradeable points concessions, work in an occupation on the Immigration Salary List, qualify under transitional arrangements for pre-4 April 2024 visa holders, or work in a recognized national pay scale role.
The Core Structure of the Skilled Worker Salary Requirement
The Skilled Worker route operates on a points-based system where you must score 70 points to be granted leave. Twenty of these points are non-negotiable points awarded for sponsorship by an approved Home Office sponsor, 20 points are awarded for a job at an appropriate skill level (RQF Level 3 or above), and 10 points are awarded for English language proficiency at level B1 CEFR. The remaining 20 points are tradeable and relate directly to your remuneration.
To score the 20 tradeable salary points, your proposed employment must satisfy three distinct financial tests simultaneously:
- The General Salary Threshold: An absolute annual monetary floor set by the Home Office regardless of how few hours you work.
- The Occupation Going Rate: The sector-specific rate for your job classification, based on Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) data.
- The Minimum Hourly Rate: A hard hourly floor below which no Skilled Worker can be paid, irrespective of whether their total annual earnings exceed the general threshold.
Caseworkers assess your salary against all three criteria. If your pay satisfies the annual general threshold of £38,700 but falls below the 50th percentile going rate for your specific occupation code, or works out to less than £15.88 per hour based on your contracted weekly hours, the 20 tradeable points cannot be awarded and your application will be refused.
Identifying Your Standard Occupational Classification (SOC) Code and Going Rate
Every sponsored role in the UK must be mapped to a specific four-digit occupation code within the Standard Occupational Classification system. The Home Office uses the SOC 2020 coding system to establish eligible occupations and their corresponding going rates in Appendix Skilled Occupations.
The Difference Between Table 1 and Table 2
Appendix Skilled Occupations contains two primary tables that dictate the applicable going rates:
- Table 1 (Standard SOC 2020 Occupations): Applies to all new applicants entering the Skilled Worker route on or after 4 April 2024. The going rates in Table 1 are set at the 50th percentile (median) of UK full-time earnings for that occupation.
- Table 2 (Transitional SOC 2020 Occupations): Applies to workers who were already sponsored under the Skilled Worker route before 4 April 2024 and have held continuous permission since. The going rates in Table 2 are set at the 25th percentile of UK earnings for that occupation.
Determining the Correct SOC Code
Your sponsoring employer must select the SOC code that best matches the genuine day-to-day duties, required qualifications, and level of responsibility of your role, rather than simply selecting a job title that appears convenient. Home Office caseworkers use the ONS Occupational Coding Tool and internal guidance to evaluate whether the chosen code is an accurate reflection of the position.
If a caseworker suspects that an employer has deliberately chosen an incorrect SOC code to benefit from a lower going rate or to fit a non-eligible job into an eligible category, they will initiate genuine vacancy checks. This can result in the refusal of your visa and compliance enforcement action against the employer's sponsor licence.
Tradeable Points Options and Salary Reductions (Options A to E)
Applicants entering the route under the standard rules must secure their 20 tradeable points through one of five options (Option A to Option E). Each option establishes a different combination of general threshold, going rate percentage, and hourly minimum.
Option A: Standard Skilled Worker
This is the default category for all applicants who do not qualify for any special concession or transitional protection. Under Option A, you must be paid at least:
- £38,700 per year, and
- 100% of the occupation going rate listed in Table 1 of Appendix Skilled Occupations, and
- £15.88 per hour.
Option B: Educational Concession for a Relevant PhD
If you hold a recognized UK PhD (or an Ecctis-verified international equivalent) that is directly relevant to your sponsored role, you can trade your qualification for a 10% reduction in the general threshold and going rate. You must be paid at least:
- £34,830 per year, and
- 90% of the occupation going rate listed in Table 1, and
- £15.88 per hour.
Your sponsor must confirm on the Certificate of Sponsorship (CoS) that your doctorate is relevant to the position and maintain evidence supporting that assessment.
Option C: Relevant PhD in a STEM Subject
If your PhD is in a Science, Technology, Engineering, or Mathematics (STEM) subject and is relevant to your sponsored role, the discount increases to 20%. You must be paid at least:
- £30,960 per year, and
- 80% of the occupation going rate listed in Table 1, and
- £15.88 per hour.
The employer must explicitly record on the CoS that the PhD is in a STEM discipline and provide justification for its operational relevance.
Option D: Roles on the Immigration Salary List (ISL)
The Immigration Salary List replaced the previous Shortage Occupation List (SOL). Unlike the old SOL rules, the ISL does not provide a 20% discount on the occupation going rate. Instead, it reduces the general annual salary threshold while retaining the requirement to pay 100% of the going rate. Under Option D, you must be paid at least:
- £30,960 per year, and
- 100% of the occupation going rate listed in Table 1, and
- £15.88 per hour.
Only occupations explicitly listed in Appendix Immigration Salary List qualify for this tradeable points option.
Option E: New Entrants to the UK Labour Market
The new entrant concession provides substantial salary discounts to help early-career professionals, graduates, and trainees secure sponsorship. Under Option E, you must be paid at least:
- £30,960 per year, and
- 70% of the occupation going rate listed in Table 1, and
- £15.88 per hour.
To qualify as a new entrant, you must meet at least one of the following criteria at the time of your application:
- You are under the age of 26 on the date of application.
- You are applying from within the UK and your most recent grant of leave was as a Student, you completed a degree-level course (or were within three months of completing a PhD), and you are switching into the Skilled Worker route.
- You are applying from within the UK and your most recent grant of leave was on the Graduate route.
- You are working towards a recognized professional qualification in a UK regulated profession.
- You are working towards full registration or chartered status with the recognized professional body for the occupation you are sponsored in.
The Four-Year New Entrant Cap
A critical limitation on new entrant status is that the total cumulative period you can spend under any combination of new entrant Skilled Worker leave, Tier 2 (General) new entrant leave, and Graduate route leave cannot exceed four years. If you previously held two years of leave on the Graduate route, you can only be sponsored as a new entrant under the Skilled Worker route for a maximum of two additional years. Once that four-year ceiling is reached, your employer must increase your salary to meet the standard Option A requirements (or another applicable category) to extend your sponsorship.
Transitional Arrangements for Pre-4 April 2024 Workers (Options F to J)
To protect individuals already established in the UK immigration system before the significant baseline salary increases, the Home Office created transitional provisions. If you were granted permission as a Skilled Worker (or Tier 2 General migrant) under a Certificate of Sponsorship assigned before 4 April 2024, and have continuously maintained permission on the route, you are assessed under Options F through J and Table 2 going rates.
These transitional protections remain available for visa extension, change of employment, and settlement applications submitted before 1 December 2030.
Transitional Tradeable Points Breakdown
- Option F (Standard Transitional): Requires a minimum annual salary of £29,000, 100% of the Table 2 going rate (25th percentile), and an hourly rate of at least £11.90.
- Option G (Transitional Relevant PhD): Requires a minimum annual salary of £26,100, 90% of the Table 2 going rate, and an hourly rate of at least £11.90.
- Option H (Transitional STEM PhD): Requires a minimum annual salary of £23,200, 80% of the Table 2 going rate, and an hourly rate of at least £11.90.
- Option I (Transitional Immigration Salary List): Requires a minimum annual salary of £23,200, 100% of the Table 2 going rate (or 80% if the role was on the legacy Shortage Occupation List and remains eligible), and an hourly rate of at least £11.90.
- Option J (Transitional New Entrant): Requires a minimum annual salary of £23,200, 70% of the Table 2 going rate, and an hourly rate of at least £11.90, subject to the four-year limit.
If you break your continuous permission on the Skilled Worker route (for example, by switching to another visa category that does not lead to settlement, or departing the UK without valid leave), you lose transitional protection and must qualify under Options A to E upon re-entry.
Health and Care and National Pay Scale Occupations (Option K)
Occupations subject to national pay scales (such as NHS medical practitioners, nurses, midwives, allied health professionals, and state school teachers) are governed by Option K and listed in Table 3, Table 4, or Table 5 of Appendix Skilled Occupations.
Under Option K, the general annual salary threshold is £23,200. Sponsoring employers must pay either £23,200 or the exact pay scale point determined by the relevant national collective agreement (such as NHS Agenda for Change, national medical and dental terms, or national teacher pay ranges), whichever is higher.
Furthermore, Health and Care Worker visa applicants whose roles are not covered by national pay scales but fall within qualifying health and social care SOC codes are subject to a general threshold of £29,000 (or the Table 2/Table 1 rate depending on when they entered the system), offering lower thresholds compared to mainstream commercial roles.
Master Salary Threshold and Tradeable Points Comparison Table
The following table outlines the financial criteria across every tradeable points option under Appendix Skilled Worker:
| Option Code | Category Description | General Annual Salary Threshold | Required Percentage of Going Rate | Minimum Hourly Rate Floor | Going Rate Data Source | Typical Application Scenarios |
|---|---|---|---|---|---|---|
| Option A | Standard Skilled Worker | £38,700 | 100% | £15.88 | Table 1 (50th Percentile) | New applicants entering the route on or after 4 April 2024 without concessions. |
| Option B | Relevant Non-STEM PhD | £34,830 | 90% | £15.88 | Table 1 (50th Percentile) | Applicants holding a relevant UK/Ecctis-verified doctorate. |
| Option C | Relevant STEM PhD | £30,960 | 80% | £15.88 | Table 1 (50th Percentile) | Applicants holding a relevant UK/Ecctis-verified STEM doctorate. |
| Option D | Immigration Salary List (ISL) | £30,960 | 100% | £15.88 | Table 1 (50th Percentile) | Roles listed in Appendix Immigration Salary List assigned post-4 April 2024. |
| Option E | New Entrant | £30,960 | 70% | £15.88 | Table 1 (50th Percentile) | Graduates, students switching, applicants under 26, or regulated professional trainees (max 4 years). |
| Option F | Transitional Standard | £29,000 | 100% | £11.90 | Table 2 (25th Percentile) | Workers sponsored continuously before 4 April 2024 extending or changing employment. |
| Option G | Transitional Relevant PhD | £26,100 | 90% | £11.90 | Table 2 (25th Percentile) | Pre-4 April 2024 continuous visa holders with a relevant non-STEM PhD. |
| Option H | Transitional STEM PhD | £23,200 | 80% | £11.90 | Table 2 (25th Percentile) | Pre-4 April 2024 continuous visa holders with a relevant STEM PhD. |
| Option I | Transitional ISL / Legacy SOL | £23,200 | 100% | £11.90 | Table 2 (25th Percentile) | Pre-4 April 2024 continuous visa holders in ISL roles (or 80% for legacy SOL roles where applicable). |
| Option J | Transitional New Entrant | £23,200 | 70% | £11.90 | Table 2 (25th Percentile) | Pre-4 April 2024 continuous visa holders still qualifying within their 4-year new entrant allowance. |
| Option K | National Pay Scale Roles | £23,200 | Pay Scale Rate | National Minimum Wage legislation | Table 3, 4, or 5 | NHS health professionals, state-funded teachers, and public sector national scale roles. |
Working Hours, Pro-Rating, and Calculating the True Hourly Rate
A frequent point of failure in Skilled Worker applications is the miscalculation of pro-rated salaries for non-standard working hours. Sponsoring employers often assume that as long as the gross annual salary figure on the Certificate of Sponsorship meets the numerical threshold (such as £38,700), the requirement is satisfied. This is incorrect if the employee works more than the standard weekly hours on which the going rate is based.
Standard Working Hours Baseline
Under Appendix Skilled Occupations, all going rates listed in Table 1 and Table 2 are calculated on the basis of a 37.5-hour working week, unless an alternative working week length is explicitly stated in the occupation code description (for example, certain health sector or transport roles that list 40-hour baselines).
The annual general threshold (e.g. £38,700 for Option A or £30,960 for Option E) is absolute: it cannot be pro-rated downwards if the worker works fewer than 37.5 hours per week. If an applicant works 20 hours per week under Option A, they must still earn at least £38,700 per year, which translates to a substantially higher hourly rate of £37.21 per hour.
Conversely, the occupation going rate must be pro-rated upwards if the contracted working hours exceed the baseline stated in the tables.
Step-by-Step Pro-Rating Calculation
To calculate the pro-rated going rate for a contracted working week, use the following formula:
Pro-rated Going Rate = (Stated Annual Going Rate / Stated Baseline Hours) * Actual Contracted Weekly Hours
Consider an applicant sponsored as a Software Development Professional (SOC 2020 code 2134) under Option A. Assume Table 1 lists the median going rate as £49,400 based on a 37.5-hour week:
- If contracted for 37.5 hours per week, the applicant must earn at least £49,400 (the higher of the £38,700 threshold and the £49,400 going rate). The hourly rate is £25.33 (£49,400 / 52 / 37.5), which exceeds £15.88.
- If contracted for 42 hours per week, the going rate is pro-rated upwards: (£49,400 / 37.5) * 42 = £55,328. The applicant must be paid at least £55,328 per year.
- If contracted for 30 hours per week, the going rate is pro-rated downwards: (£49,400 / 37.5) * 30 = £39,520. Because £39,520 is still higher than the absolute general threshold of £38,700, the applicant must be paid at least £39,520.
- If the pro-rated going rate for a part-time role drops below £38,700 (for example, £30,000 for 22.5 hours), the applicant must still be paid at least £38,700 to meet the absolute general threshold.
What Components of Pay Count Towards the Threshold
The Home Office applies strict rules regarding what elements of remuneration can be counted toward the salary requirement:
- Permitted: Only guaranteed basic gross pay before tax, National Insurance, and statutory deductions can be counted.
- Excluded: Non-guaranteed payments, overtime pay, performance-related bonuses, commission, shift allowances, travel or accommodation allowances, cost-of-living adjustments, pension contributions made by the employer, and non-cash benefits in kind cannot be included in the threshold calculation.
- Guaranteed Allowances: Allowances can only be counted if they are guaranteed, paid regardless of circumstances, and treated as basic taxable pay on the employee's payslip. Most variable or discretionary allowances are rejected by caseworkers.
What Evidence Caseworkers Assess and Sponsor Record-Keeping
When a Skilled Worker application is lodged, the Home Office caseworker cross-references data declared on the electronic Certificate of Sponsorship with employer documentation, published immigration tables, and HM Revenue and Customs (HMRC) records.
Caseworker Evidentiary Checks
Caseworkers perform the following systematic verification steps:
- CoS Data Review: Verification of the SOC code, job title, summary of duties, contracted weekly hours, gross salary figure, and the specific tradeable points option claimed (Option A to K).
- PAYE Real Time Information (RTI) Cross-Referencing: For in-country extension or switching applications, the Home Office uses automated data sharing with HMRC to confirm that the salary reported on the applicant's payslips and PAYE records matches the remuneration declared on the previous and current CoS.
- Genuine Vacancy Assessment: Scrutiny of the employer's organizational structure, commercial turnover, and operational scale to ensure the business genuinely requires the role at the stated salary level.
- National Minimum Wage (NMW) Compliance: Ensuring that regardless of the points option claimed, the rate of pay satisfies the prevailing National Minimum Wage and National Living Wage regulations across all hours worked, including any unpaid trial periods, travel time, or mandated training.
Documents Required and Appendix D Retention Duties
To withstand audit scrutiny and avoid visa refusals, sponsoring employers must retain specific evidence in accordance with Appendix D of the sponsor guidance:
- A copy of the written employment contract signed by both parties, detailing the gross annual salary, regular hours of work, and pay frequency.
- Copies of payslips and corresponding bank statements showing electronic transfer of wages directly from the sponsor's corporate bank account to the worker's account.
- Detailed records of actual hours worked by the sponsored worker, particularly for employees paid on an hourly or daily basis, or where hours vary from week to week.
- Evidence of academic qualifications (such as degree certificates and Ecctis confirmation letters) if claiming points under Options B, C, G, or H for a PhD.
- Evidence of new entrant eligibility, such as a passport proving age under 26, student transcripts confirming course completion, or proof of enrolment in a regulated professional qualification programme.
Employers must retain these records throughout the duration of sponsorship and for at least one year after sponsorship ends, or until a Home Office compliance officer has examined and approved them.
Edge Cases and Complex Salary Scenarios
Certain operational and personal situations introduce complexities into how salary rules are applied. Both employers and workers must handle these scenarios carefully to prevent inadvertent breaches of immigration conditions.
Dependants and Maintenance Rules
While dependants of Skilled Workers do not have independent salary thresholds, their ability to accompany or join the main applicant is directly linked to the main worker's category:
- Care Workers and Senior Care Workers: Since 11 March 2024, individuals sponsored under SOC 2020 codes 6135 (Care workers and home carers) and 6136 (Senior care workers) are prohibited from bringing dependants to the UK, unless they were already sponsored under the route before that date and have held continuous permission.
- Financial Maintenance Requirement: Unless the sponsor certifies maintenance on the CoS (A-rated sponsors only), the main applicant must show £1,270 in personal funds, plus £285 for a dependent partner, £315 for the first dependent child, and £200 for each additional child, held for at least 28 consecutive days prior to the date of application. This is distinct from the main salary threshold.
Unpaid Leave and Reductions in Salary
A sponsored worker cannot take more than four weeks of unpaid leave (or leave at reduced pay) in any single calendar year (1 January to 31 December) without their sponsorship being automatically terminated, unless the absence is covered by one of the permitted statutory exceptions:
- Maternity, paternity, shared parental, or adoption leave.
- Sick leave certified by a registered medical practitioner.
- Assisting with a national or international humanitarian or environmental crisis, with the sponsor's agreement.
- Taking part in legally organized industrial action.
- Jury service.
If a worker takes unauthorized unpaid leave exceeding four weeks, the sponsor must stop sponsoring the worker and report the circumstance via the Sponsor Management System (SMS) within 10 working days. The Home Office will subsequently curtail the worker's visa.
Furthermore, if an employer permanently reduces a worker's salary, the new salary must still meet the required threshold under the original tradeable points option. If the reduced salary falls below the applicable going rate or general threshold, the sponsor cannot continue sponsorship, and the worker must either find a new sponsor, switch categories, or leave the UK.
Switching Routes and New Entrant Expirations
When switching into the Skilled Worker route from a Student or Graduate visa, calculating the exact expiry of new entrant eligibility is essential:
- Switching from Graduate: If an applicant spent two years on the Graduate route, their maximum allowable grant as a new entrant under Option E is two years. If the employer issues a three-year CoS under Option E, the caseworker will refuse the visa because the four-year lifetime cap would be exceeded before the end of the requested visa term.
- Extending Beyond the Four-Year Cap: When extending permission after completing four years across Graduate and new entrant leave, the sponsor must issue a new CoS under Option A (or Option F if covered by transitional rules) paying 100% of the standard going rate and at least £38,700 per year.
Salary Sacrifice Schemes and Deductions
Salary sacrifice arrangements (such as workplace pension contributions, childcare vouchers, or cycle-to-work schemes) are common in UK employment. However, for immigration purposes, the Home Office evaluates gross pay after salary sacrifice deductions have been taken.
If an employee's nominal gross salary is £40,000, but they sacrifice £3,000 per year into an enhanced pension scheme, their countable gross salary for Skilled Worker compliance is £37,000. Under Option A, this would result in a visa refusal or a sponsor compliance breach because £37,000 falls below the £38,700 general threshold. Employers must ensure that contractual pay after all salary sacrifice arrangements remains at or above the mandatory minimum thresholds.
Similarly, mandatory deductions made by the employer for accommodation, uniform, or equipment that reduce the worker's net pay below the relevant National Minimum Wage rates will lead to immediate compliance sanctions and application refusals.
Common Mistakes and Refusal Triggers
Applications under the Skilled Worker route are refused primarily due to technical calculations errors or misunderstandings of Appendix Skilled Worker rules. The following errors trigger automatic refusals:
1. Failure to Pro-Rate the Going Rate for Long Working Weeks
Many employers assume that an annual salary of £38,700 covers any number of contracted hours. If an employee is contracted for 48 hours per week in a role with a £38,700 going rate (based on 37.5 hours), the actual required going rate for that worker is £49,536 per year ((£38,700 / 37.5) * 48). Paying £38,700 for a 48-hour week yields an hourly rate of £15.50, which fails both the pro-rated going rate test and the £15.88 hourly rate floor.
2. Inappropriate SOC Code Matching (Down-Coding)
Selecting a SOC code with a lower going rate that does not align with the true responsibilities of the role is classified as down-coding. Caseworkers cross-check the job description, required qualifications, and industry standard salaries. If down-coding is identified, the caseworker will refuse the application under the genuine vacancy requirement (paragraph SW 5.1 of Appendix Skilled Worker) and refer the sponsor to the Home Office compliance team for an unannounced inspection.
3. Bundling Allowances into Basic Pay on the CoS
Employers frequently enter a total remuneration figure on the CoS that combines basic pay with non-guaranteed bonuses, shift allowances, or London weighting allowances. If the caseworker discovers during document review that the guaranteed basic salary excluding allowances is below the threshold, the tradeable points are denied.
4. Overestimating New Entrant Eligibility Duration
Assigning a Certificate of Sponsorship for three or five years under Option E or Option J to an applicant who has already utilized part of their four-year new entrant allowance on the Graduate route or Tier 2 route will lead to a direct refusal. Sponsors must calculate the precise remaining allowance and limit the CoS period accordingly.
5. Ignoring Hourly Rate Floors in Salaried Contracts
Even when an annual salary exceeds £38,700, high contractual hours can reduce the calculated hourly rate below £15.88. For example, a salary of £40,000 paid for a 50-hour working week works out to £15.38 per hour (£40,000 / 52 / 50). This fails the mandatory hourly rate requirement of £15.88 per hour, resulting in a mandatory refusal.
6. Failing to Report Salary Reductions via the SMS
If a sponsor reduces an existing worker's pay due to operational changes, restructuring, or reduced working hours, this must be reported on the SMS within 10 working days. If the reduction pushes the salary below the qualifying rate for that worker's specific points option, the sponsor must cease sponsorship. Failing to report reductions or keeping a worker whose pay has dropped below the threshold is one of the most common grounds for sponsor licence revocation.
Practical Next Steps for Employers and Applicants
Navigating Skilled Worker salary compliance requires meticulous calculation before assigning a Certificate of Sponsorship or submitting an online visa application.
- For Sponsoring Employers: Audit the proposed job description against the SOC 2020 coding lists in Table 1, Table 2, and the Immigration Salary List. Calculate the exact hourly rate and pro-rated going rate based on the worker's precise contracted weekly hours. Ensure that basic pay excluding allowances satisfies all three financial floors, and record all calculations on the migrant's HR file.
- For Visa Applicants: Review your Certificate of Sponsorship details carefully before completing your visa application form. Verify that your sponsor has assigned the correct tradeable points option (Option A to K), that your stated basic gross salary equals or exceeds the required rate, and that any previous time spent under the Graduate or new entrant routes has been accurately factored into the sponsorship duration.
Reviewed by Wesbridge Associates team on . We check our published guidance against GOV.UK and current Home Office rules.
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