Employers can benefit from a reduction in the minimum salary requirements when sponsoring applicants under the Skilled Worker route. This includes applicants who are new entrants to the labour market. The pay for them can be 70% of the going rate for the relevant occupation code. Whilst this is designed to encourage recruitment and growth, sponsors can be concerned at the necessary salary increase when the time comes for the employee’s Skilled Worker visa to be extended.
Skilled Worker minimum salary requirements
When applying for permission to enter or stay in the UK under the Skilled Worker route, applicants must score 50 points. This is for meeting the sponsorship, skill level, and English language requirements. They must score a further 20 points for meeting the salary requirement. These points are tradeable; therefore, the salary requirement will depend on the individual circumstances of the application. One of the 11 tradeable points options (A-K) must be met to score 20 points.
Option A of the tradeable points is the most common selection for new applicants, and requires a salary that meets or exceeds all of the following:
- £38,700 per year; and
- the going rate for the relevant SOC 2020 occupation code.
The minimum salary rates are less for those who already held a Skilled Worker visa granted before 4 April 2024. When extending their permission to stay in the UK, including when they are changing roles/employers, they must generally be paid an annual salary of at least £29,000 (and the going rate for the SOC 2020 occupation code), depending on their circumstances.
When choosing to sponsor an individual, it is important to check whether any of the other tradeable points categories apply. If so, it can mean a reduction in the required salary.
For applicants under the new entrant category, the following tradeable points options may apply:
- Option E applies to an applicant who is a new entrant to the labour market, and their salary must equal or exceed £30,960 per year, and 70% of the going rate for the relevant SOC 2020 occupation code.
- Option J may apply if an applicant is extending their Skilled Worker visa granted before 4 April 2024, and they are still eligible for a new entrant concession. Their salary must equal or exceed £23,200 per year, and 70% of the relevant going rate.
Skilled Worker extensions: salary increase
Under most tradeable options, applicants do not need to provide evidence of their relevant qualification again on extension and, with some exceptions, may continue to benefit from the reduction to the going rate.
The new entrant option can cause significant concerns for sponsors because, unlike the other options, it may only be relied upon temporarily. The maximum period an applicant can rely on being a new entrant is four years. This includes time spent as a Skilled Worker, Tier 2 Migrant, and/or on a Graduate visa. As applicants must complete five years continuous residence on a Skilled Worker visa in order to qualify for Indefinite Leave to Remain (ILR), they cannot rely on the new entrant reduction for the full duration prior to ILR.
EXAMPLE
Mr Adams entered the UK in November 2020 with permission to enter under the Skilled Worker route. He qualified as a new entrant and was employed under code 2137 as a Web Designer, earning £23,000 per year. His four-year maximum period as a new entrant is now coming to an end. He is remaining in the same role, with the same employer, and is applying to extend his Skilled Worker visa. His sponsor has sought advice and learnt that Mr Adams no longer qualifies as a new entrant.
With the change in the Immigration Rules, the occupation code under which Mr Adams was sponsored has changed to code 2141. As his initial visa was issued before 4 April 2024, he can benefit from transitional provisions with a slightly lower salary threshold than would apply to new Skilled Worker applicants. The minimum amount Mr Adams must now be paid as a Web Designer is £35,800, which is a significant increase even under the transitional provisions.
The minimum salary requirements, found under Appendix Skilled Occupations, can be updated. Therefore, even where an applicant has not benefited from a reduction in the minimum salary requirements, the going rate may have increased come the time for an extension application.
Options for sponsors
It is important that sponsors are mindful of the full going rates and the tradeable points when employing new entrants. They will also need to consider whether the prospective employee has already held permission to stay as a new entrant, as they may be unable to benefit from the full four years.
When the employee no longer qualifies as a new entrant, the sponsor will need to issue a Certificate of Sponsorship (CoS) reflecting the salary increase in line with the going rate. If the salary falls below the minimum thresholds, the Skilled Worker application will be refused.
Sponsors may wish to consider whether the employee’s role may fall within a different occupation code. The occupation codes can be found under Appendix Skilled Occupations and further details of the job duties can be found using the CASCOT occupation coding tool. It should be noted that the Home Office will consider whether a less appropriate occupation code has been selected with the intention of paying the applicant a lower going rate. If an incorrect occupation code is used, the Skilled Worker application may be refused. The Home Office may also take compliance action against the sponsor if false or misleading information has been supplied.
How our Immigration Solicitors can help
Our immigration team are experts in supporting organisations with managing their sponsor licences and the Skilled Worker applications of their employees. We can advise and assist you with any questions you may have about minimum salary requirements, SOC codes, and extending the visas of sponsored workers. For advice, please contact us or complete our enquiry form below.
This article was originally published in October 2022 and has been lightly updated. It is accurate as of the date of publication shown.
