How to Calculate the Skilled Worker Salary Requirements in 2026
Employers sponsoring overseas talent under the Skilled Worker visa must meet strict salary requirements. The minimum salary threshold is subject to periodic review.
This guide explains how to calculate the Skilled Worker salary correctly in 2026, including minimum thresholds, going rates and common pitfalls that lead to refusals or compliance action.
Why Salary Calculations Matter
The salary requirement is one of the most common reasons for:
Skilled Worker visa refusals
Certificate of Sponsorship (CoS) rejections
Sponsor licence compliance breaches
The Home Office expects sponsors to demonstrate that the role is:
Genuine
Paid at or above the required salary level
Skilled at RQF Level 6 or above (with some exceptions)
💡Meeting the salary threshold is mandatory, even where a candidate is highly experienced or urgently needed.
The Minimum Salary Threshold
The Skilled Worker route operates on a two-stage salary test. The sponsored worker must be paid at least the higher of:
The general salary threshold for the option applicable; and
The occupation-specific “going rate” for the role
General Salary Thresholds
The Immigration Rules set out the different “Options” by which an applicant can qualify for a Skilled Worker visa. These Options determine which salary threshold applies and whether any discounts are permitted.
💡The current thresholds are significantly higher than under previous rules and is reviewed periodically by the Home Office. Employers must always check the current threshold in force at the date the Certificate of Sponsorship is assigned.
General Options (for those who do not meet the Transitional Arrangement Options or Option K):
Option A – Standard Salary: £41,700 per year and 100% of the going rate
Option B – PhD: £37,500 per year and 90% of the going rate
Option C – PhD in STEM: £33,400 per year and 80% of the going rate
Option D – Immigration Salary List: £33,400 per year and 100% of the going rate
Option E – New Entrant: £33,400 per year and 70% of the going rate
Transitional Arrangement Options (for those who were already in the route before 4 April 2024):
Option F – Standard Salary: £31,300 per year and 100% of the going rate
Option G – PhD: £28,200 per year and 90% of the going rate
Option H – PhD in STEM: £25,000 per year and 80% of the going rate
Option I – Immigration Salary List: £25,000 per year and 100% of the going rate
Option J – New Entrant: £25,000 per year and 70% of the going rate
Other: Option K – Health or Education: £25,000 per year and 100% of the going rate
Part-Time Work
The general threshold is the same, regardless of how many hours a week the applicant is sponsored to work. It cannot be pro-rated for part-time work. This means employers should be cautious: part-time roles often fail the salary test.
Understanding the “Going Rate”
Each eligible occupation code under the Skilled Worker route has an associated Going Rate, based on annual full-time earnings:
Going rates are listed in the Skilled Worker occupation tables in the Immigration Rules
These are usually based on a 37.5-hour working week
Some roles have very high going rates, exceeding the general salary threshold
Salary calculation formula (Step-by-Step)
To calculate whether a role meets the Skilled Worker salary requirement in 2026:
Step 1: Confirm the correct occupation code - Use the Home Office Skilled Worker occupation list and ensure the job description matches the code
Step 2: Identify the applicable going rate - Locate the annual going rate for that occupation and confirm the standard weekly hours assumed for the role
Step 3: Adjust for working hours - If the role is not based on 37.5 weekly working hours, the salary must be pro-rated
Step 4: Compare against the general threshold - The final salary must be the higher of the adjusted going rate, or the general threshold
💡The occupation cade must match the description and not merely the job title; incorrect coding is a common cause of refusal.
What Counts Towards Salary (and What Does Not)
Permitted salary elements
✔ Gross basic pay
✔ Guaranteed allowances forming part of the employment contract
Not permitted
✘ Overtime when hours fluctuate therefore not guaranteed
✘ Bonuses (whether or not guaranteed)
✘ Benefits such as equity shares and health insurance
✘ Allowances such as accommodation or living allowance (there are some exceptions in place)
Payments Subtracted from Salary
The following payments to the sponsor will be subtracted from salary calculations:
(i) deductions from salary (e.g. immigration costs); or
(ii) repayments of loans by the sponsor to the applicant; or
(iii) investments by the applicant in the sponsor company.
💡 Shares purchased by the applicant in the sponsor company must be taken into account.
New Entrants and Discounted Salary Rates
In some circumstances new entrant discounts may apply if the worker:
Is under 26; or
Is switching from a Student or Graduate visa; or
Is working towards a recognised professional qualification
💡However, discounted rates are narrower and more restrictive. Sponsors should seek advice before relying on a reduced threshold.
Common Mistakes Employers Make
Any of these errors can result in visa refusal or sponsor licence action:
Using an incorrect occupation code
Relying on bonuses or allowances that do not count towards the requirements
Failing to pro-rate salaries correctly
Assigning a CoS before salary changes take effect
Using outdated salary thresholds
Ongoing Compliance Obligations
The Home Office may request payroll records during compliance audits. Once a Skilled Worker is sponsored, employers must:
Report salary reductions or changes in working hours
Pay the salary required throughout sponsorship
Ensure job details and occupation code match what is stated on the CoS
How We Can Help
Calculating Skilled Worker salaries correctly in 2026 requires careful analysis of the Immigration Rules, occupation codes, and Home Office guidance. We advise employers on:
Correct occupation code selection
Salary calculations and compliance checks
Skilled Worker visa applications
Sponsor licence applications, audits and ongoing compliance
Contact us for tailored advice and avoid costly refusals or compliance breaches.