Let’s walk through an example of an occupation and the salary calculations based on the Skilled Worker visa criteria. Here we look at an Electrical Engineer role for someone who is on a Graduate visa.
Electrical engineer example
Step 1: Identify the occupation
Occupation: Electrical Engineer
Occupation Code: 2123
Step 2: Find out the lowest salary you can offer
To sponsor a new worker under the Skilled Worker route, the lowest gross annual salary you can offer is £41,700 (£17.13 per hour). You can find this in Appendix Skilled Worker, Option A (gov.uk)
Step 3: Find the annual going rate for the role
For an Electrical Engineer, the annual going rate is £58,700 (£30.10 per hour). This is based on a 37.5-hour working week.
Step 4: Apply discounts (if applicable)
If applicable, discounts can bring down the salary you must offer. For example:
The new entrant discount for someone on a Graduate visa:
- Lowers the £41,700 salary to £33,400.
- Cuts the £58,700 annual going rate to £41,100.
Step 5: Compare all figures
You must offer the highest of these figures:
- The lowest salary you can offer is £41,700. With a new entrant discount applied for someone on a Graduate visa, this is cut to £33,400.
- Going rate is £58,700. With a new entrant discount applied for someone on a Graduate visa, this is cut to £41,100.
As the sponsor must offer the highest of these figures, the salary offered must be £41,100
Step 6: Pro-rata the salary if the hours are different to 37.5 per week
As you must offer the highest of the salaries, we will look at the annual going rate only.
If the worker is hired to work 40 hours per week, the salary would need to be:
- Annual going rate of £58,700.
- Hourly rate of £30.10
Calculation:
£30.10/hour × 40 hours/week × 52 weeks = £62,608/year.
If the worker is on a Graduate visa, the salary would need to be:
- Discounted annual going rate of £41,100.
- Hourly rate of £21.08.
Calculation:
£21.08/hour x 40 hours/week x 52 weeks = £43,864/year
Step 7: Final salary offer
Without discounts, offer a salary of £62,608 for a 40-hour week.
If the Electrical Engineer qualifies as a new entrant, offer a salary of £43,864 for a 40-hour week. This cuts the ‘going rate’ of £62,608 by almost 30%.