UK employers sponsoring Skilled Worker visas must typically pay at least £38,700, but exceptions allow lower salaries in specific cases. Factors like job role, qualifications, and visa history determine eligibility for discounted thresholds under Appendix Skilled Worker.
This article outlines when employers can legally pay less, covering salary reductions based on job characteristics, migrant status, and sector-specific exemptions. Understanding these rules ensures compliance while managing sponsorship costs effectively.
What is the Minimum Salary payable?
The general principle is that employees being sponsored in the skilled worker route must be paid either at the general threshold or the going rate for the relevant job, whichever is higher.
The general threshold is the minimum salary that must be paid to an employee on a skilled worker visa. The starting point for the minimum salary is the higher of £38, 700 per annum or the going rate. Employers can then consider if any of the salary 'discounts' are applicable in the circumstances. The criteria for the discounted rates are set out in Options A-K of the eligibility requirements found in Appendix Skilled Worker.
The going rates can be found in Tables 1-5 of Appendix Skilled Occupations and, again, discounts are available depending on meeting the eligibility requirements found in Appendix Skilled Worker.
In this article, we explore the circumstances in which lower salaries can be paid to employees sponsored in the skilled worker route.
When Can Employers pay less than £38, 700?
- Is the migrant already in the Skilled Worker route and was their current CoS assigned before 4th April 2024?
- If so, the employer can pay £29, 000 per annum or, if higher, the going rate found in table 2. The going rate for salaries in table 2 starts at a lower rate than table 1.
- £26,100 per annum or, if higher, 90% of the going rate where the role is in an eligible SOC code and requires a PhD.In this case, you must check the SOC code in table 2 to confirm that the role is eligible for this reduction.
- £23, 200 per annum or, if higher, 80% of the going rate .where the role is in an eligible STEM SOC code and requires a PhD or is an eligible health or education role
- £23, 200 or, if higher, 70% of the going rate where the New Entrant definition is met (see relevant eligibility requirements below)
Job Characteristics
- Is the role a regulated profession and will it require the migrant to work towards a recognised qualification?
- Is the role in a chartered profession and is the migrant working towards the relevant full chartered status?
- Is the role post-doctoral in a relevant job (eg Chemical or biological scientist)?
Migrant Characteristics
- Does the migrant currently have a student or graduate visa or where their most recent permission was a student visa and it expired less than 2 years before the current application?
- Is the migrant under 26 years old?
- Does the migrant currently hold a graduate visa?
Note that the maximum period you can rely on the new entrant threshold is 4 years which means that you can only sponsor up to a 4 year visa at the lower salary rate.
Also note that if the migrant has a graduate visa, the two year period of that visa will be counted towards this 4 year period.
Note that where the role features on the Immigration Salary List the salary threshold is reduced to £23,200 but no discount is applied to the going rate.
Note that salaries for certain healthcare roles such as carers/pharmaceutical technicians will also fall under table 2 where they are sponsored by an eligible business.
- Where the migrant is new to the Skilled Worker route or joined it on or after 4th April 2024
- £38, 700 per annum or, if higher, the going rate found in table 1.
- £34,830 per annum or, if higher, 90% of the going rate where the role is an eligible SOC code and requires a PhD. In this case, you must check the SOC code in table 1 to confirm that the role is eligible for this reduction.
- £30, 960 per annum or, if higher, 80% of the going rate where the role is an eligible STEM SOC code and requires a PhD
- £30, 960 or, if higher, 70% of the going rate where the New Entrant definition is met (see relevant eligibility requirements at 1.4 above)
Note that where the role features on the Immigration Salary List the salary threshold is reduced to £30, 960 but no discount is applied to the going rate.
- £23, 200 per annum and the relevant going rate per tables 3 and 5 where the role is in an eligible health or education role.
Hourly Rate and Pro-Rating
For anyone new to the skilled worker route or sponsored on or after 4 April 2024 (i.e. table 1) who is not in a health and education SOC code, the minimum salary rate is £15.88 per hour or whatever the going rate states, if higher. Those in eligible health and education roles, need only meet the relevant hourly going rate.
For applicants already sponsored in the skilled worker routes before 4 April 2024 (or certain qualifying healthcare roles), the minimum hourly rate is £11.90 or whatever the going rate states, if higher.
NB Employers can prorate the annual going rate (except in the case of health and education roles) but they must always meet the relevant annual general threshold.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
