The salary threshold rules for Skilled Worker visas changed significantly in April 2024 and represent one of the biggest compliance risks for sponsoring employers. Getting the salary wrong at the CoS assignment stage can cause visa refusals and put your licence at risk. This article explains the current rules and how they apply in practice.
The General Threshold: £38,700
From April 2024 the general minimum salary for a Skilled Worker visa is £38,700 per year gross, or the going rate for the specific occupation code, whichever is higher. This replaced the previous threshold of £26,200 and represents a significant increase. The £38,700 figure applies regardless of hours worked, it must be a genuine annualised salary, not extrapolated from part-time hours.
Going Rates by Occupation Code
Every eligible occupation has a published going rate set by the Home Office based on the ONS Annual Survey of Hours and Earnings. The going rate is the 25th percentile for that occupation. If the going rate for a particular SOC code is above £38,700, the higher figure applies. For some high-skill occupations in technology, finance and healthcare the going rate can be substantially above the general threshold.
This means that for any sponsored role you need to check two figures: the general threshold and the going rate for the specific occupation code. The worker must be paid at least the higher of the two. We check both figures for every CoS we assign.
New Entrant Rates
A reduced threshold applies for workers classified as new entrants. The new entrant rate is 70% of the going rate for the occupation, subject to a minimum of £30,960 per year. New entrant status applies to workers under 26 at the time of application, those working towards a recognised professional qualification, those in their first job after completing a PhD in a relevant subject, and those who have switched from a Student visa within the last 2 years.
New entrant status can only be used once. If the worker subsequently extends their visa they must meet the full going rate unless they still qualify on other grounds.
What Counts Towards the Salary?
The salary figure that counts towards the threshold is the guaranteed basic salary. Discretionary bonuses, overtime pay that is not guaranteed, allowances, expenses, tips, and in-kind payments do not count. The salary must be paid in sterling. If the worker is paid a combination of salary and guaranteed allowances, only the guaranteed elements count.
This is an area where employers frequently make errors. A package that appears to meet the threshold when allowances are included may fall short when only the guaranteed basic salary is counted. We check the full pay structure for every sponsored role.
Healthcare and Education Roles
Certain healthcare roles covered by national pay scales, NHS Agenda for Change and the medical and dental pay scales, have specific salary rules. These roles must be paid at the applicable national pay scale rate, which in most cases exceeds the general threshold. Independent healthcare providers who do not use NHS pay scales must still meet the going rate for the relevant occupation code.
Maintaining Salary Compliance After Visa Grant
Salary compliance does not end at the CoS assignment stage. You must continue to pay your sponsored workers at least the salary stated on their CoS throughout their employment. Pay cuts, even with the worker's agreement, can put your licence at risk if they take the salary below the threshold. If you need to reduce a sponsored worker's salary, for example during a restructuring, contact us first. The implications for the worker's visa and your licence must be assessed before any change is made.
The Cost of Getting It Wrong
A CoS assigned with an incorrect salary can lead to the worker's visa application being refused. It can also trigger a UKVI audit of your entire sponsored workforce. If UKVI finds systemic salary issues across multiple sponsored workers, your licence is at risk of suspension or revocation. Getting salary compliance right at the outset is far less costly than dealing with the consequences of getting it wrong.
