Minimum salary for Skilled Workers increases to £26,200

One of the key requirements when sponsoring a non-settled worker in the UK is that applicant is paid a salary at or above the minimum rate set by the Home Office and the ‘going rate’ for that role.

There is no universal Skilled Worker minimum salary threshold. The relevant figure can be reached by considering the Immigration Rules and Home Office guidance on ‘going rates’. Any mistakes in calculating the minimum salary required can result in a refusal. In general, a sponsored worker must be paid at least the ‘going rate’ for their occupation code (SoC code), or £25,600 or £10.10 per hour  – whichever is higher.

There are a few limited circumstances where applicants can be paid less, including where the job is in a shortage occupation, the applicant is a new entrant or they hold a relevant PhD qualification. We will not cover these exceptions and ‘tradable points’ in detail here, but the lowest minimum salary threshold is £20,480.

Earlier this year, the Migration Advisory Committee indicated that employers should expect the minimum salary to increase. On 9 March 2023, the Home Office confirmed the increase in a Statement of Changes to the Immigration Rules.

The majority of workers will now need to meet a minimum salary of £26,200 or the going rate for their role, whichever is higher.

Previous minimum salary

New minimum salary

£25,600

£26,200

£23,040

£23,580

£20,480

£20,960

£10.10 per hour

£10.75 per hour

When thinking about the appropriate salary threshold, sponsors should consider:

  • What is the relevant occupation code?
  • What is the going rate for that occupation code?
  • How many hours will they work per week? The salary thresholds are based on a 39-hour week so this is particularly important where a worker will be paid the exact minimum salary for the job
  • Is the role on the shortage occupation list?
  • Is the worker classed as a ‘new entrant’?
  • Can the worker benefit from ‘tradable points’ for another reason, e.g. a relevant PhD qualification?

The increase in the minim salary threshold for Skilled Worker applications will come into force on 11 April 2023.

For expert advice, contact us on 01865 770111 or use our online enquiry form.