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 £38,700, and at least £15.88 per hour. You can find this in Appendix Skilled Worker, Option A which can be found on gov.uk.
Step 3: Find the annual going rate for the role
For an Electrical Engineer, the annual going rate is £53,500, and at least £27.44 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:
New entrant discount: Lowers the salary to £30,960 (hourly rate £15.88) and cuts the £53,500 going rate to £37.450 (hourly rate £19.21).
Step 5: Compare all figures
You must offer the highest of these three figures:
Discounted lowest salary you can offer: £30,960.
Discounted ‘Going rate’ for Electrical Engineer: £37,450.
Since the sponsor must offer the highest of these three figures, the salary offered must be £37,450.
Step 6: Pro-rata the salary if the hours are different to 37.5 per week
If the worker is hired to work 40 hours per week, the salary would need to be:
Lowest hourly rate: £19.21.
Calculation:
£19.21/hour × 40 hours/week × 52 weeks = £39,956/year.
Step 7: Final salary offer
Without discounts, offer a salary of £53,500 for a 37.5-hour week as this is the highest figure.
If the Electrical Engineer qualifies as a new entrant, offer a salary of £37,450 for a 37.5-hour week. This cuts the ‘going rate’ of £53,500 by 30%.