How to calculate salary for a skilled worker visa

How Skilled Worker salary rules work

How salary thresholds are decided

• There is a minimum salary floor
• There is a role-specific going rate
• You must always offer the higher of the two
• Some workers qualify for discounts (for example, new entrants)

Salary components you need to check

• Minimum salary threshold
• Going rate for the occupation (SOC code)
• Any applicable discounts
• Weekly working hours

Step-by-step example - Electrical Engineer on a Graduate visa

Overview

• Role: Electrical Engineer
• SOC code: 2123
• Visa status: Graduate (new entrant)
• Standard working week: 37.5 hours

Step 1: Find the minimum salary threshold

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 2: Find the 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 3: 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 4: Compare the 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
• The 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.

If the working hours are different

Pro-rata the salary for longer hours

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

• The annual going rate of £58,700, or
• The 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

• The discounted annual going rate of £41,100, or
• The hourly rate of £21.08

Calculation - £21.08/hour x 40 hours/week x 52 weeks = £43,864/year.

Final salary you must 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%.