The Skilled Worker route replaced the Tier 2 (General) route on 1 December 2020. You can access more information on this category by reading our article. Barar & Associates explains the current salary requirement below. 

Salary

As a sponsor (i.e. an employer), you must ensure that all your Skilled Worker visa holders are paid at or above the applicable salary threshold. This threshold depends on the job/occupation code, the relevant skills required, and whether any permitted “tradeable points” apply (for example, new entrant or relevant PhD).

Therefore, in general, the minimum salary you must pay is the higher of the below:

• £41,700 per year; or
• the going rate for the relevant occupation code (usually the 50th percentile for that code). 

The minimum can be lower in specific cases permitted by the Rules—for example where the job is on the Immigration Salary List (ISL), or where a relevant PhD applies, or the worker qualifies as a new entrant. Current discounted limbs include:

• ISL / STEM PhD / new entrant options (typically 80% of going rate and at least £33,400), and
• non-STEM PhD (typically 90% of going rate and at least £37,500). Always check the job’s code and applicable option.

Contrary to Tier 2 (General) workers, the salary for Skilled Workers cannot include allowances, pay or benefits (even if guaranteed) other than the guaranteed basic gross pay. For example, pay that cannot be guaranteed because hours fluctuate, shift premia, overtime, bonus pay (whether or not guaranteed), and allowances such as accommodation or cost-of-living must not be counted towards the threshold. Transitional carve-out: certain guaranteed allowances may be counted where the worker previously held Tier 2 (General) with the same sponsor and is extending/settling—this is narrow and scenario-specific. 

To calculate salary against the going rates in Appendix Skilled Occupations, the tables are based on a 37.5-hour week and are pro-rated. Therefore, take the occupation’s annual going rate and multiply by the weekly hours stated on the CoS, divided by 37.5. 

The Home Office provides examples using this method:

• An applicant who works 60 hours/week in an occupation with a full going rate of £60,000 must be paid at least £96,000 (£60,000 × 60 ÷ 37.5) to meet the going-rate limb.
• An applicant who works 30 hours/week in an occupation with a full going rate of £60,000 must be paid at least £48,000 (£60,000 × 30 ÷ 37.5).
  You must still meet the applicable general threshold (e.g., £41,700) unless a permitted discounted option applies. 

New entrants

Their minimum salary is the higher of the below:

• £33,400 per year; or
• 80% of the going rate for the relevant occupation code. 

Who can be a new entrant? Anyone falling under one of the below situations (as defined in the Rules):

• The applicant is under 26 on the date of the application.
• The job offer is a postdoctoral position in any of the following occupation codes:
  2111 Chemical scientists; 2112 Biological scientists and biochemists; 2113 Physical scientists; 2114 Social and humanities scientists; 2119 Natural and social science professionals n.e.c.; 2311 Higher education teaching professionals.
• The job offer is in a UK-regulated profession and the applicant is working towards a recognised professional qualification for that profession.
• The applicant is working towards full registration or chartered status with the relevant professional body for the job for which they are sponsored.
• The application is being made in the UK and the applicant’s most recent permission was as a Tier 1 (Graduate Entrepreneur) Migrant.
• The applicant is a recent UK graduate, or is about to graduate (meeting the Student/Tier 4 recency and qualification conditions set out in the Rules).

The applicant will not qualify as a new entrant if their combined permission as a Skilled Worker, Tier 2 Migrant and/or Graduate would exceed 4 years in total (whether or not continuous). 

For the complete, up-to-date breakdown—with worked examples, fees, and FAQs—read our full-length Skilled Worker guide.

Should you wish to discuss this Skilled Worker route in more detail, please contact our expert team of London immigration lawyers at Barar & Associates at barar.london@bararassociates.co.uk or call us on 020 7487 8370. You can access more information about us via https://bararassociates.com/