Employers preparing Skilled Worker extension applications must establish whether the employee’s salary meets the requirements in force at the relevant time. Particular attention should be given to workers whose first Certificate of Sponsorship was assigned on or after 4 April 2024, as they cannot ordinarily rely on the more favourable salary arrangements available under the pre-April 2024 transitional provisions.
A salary that satisfied the Immigration Rules when the employee’s previous application was approved may not be sufficient for an extension. Salary thresholds and occupation-specific going rates are revised periodically, making an early review essential.
Why 4 April 2024 is an important date
Transitional salary arrangements remain available to certain workers who were granted permission as a Skilled Worker under the Immigration Rules in force before 4 April 2024 and who have held continuous permission under the route since then.
Where the relevant conditions are met, these workers may be assessed under lower salary thresholds when extending or updating their permission. The transitional arrangements are due to remain available for qualifying applications submitted before 4 April 2030.
Workers who entered the Skilled Worker route under the rules in force on or after 4 April 2024 cannot rely on this salary concession. Their remuneration must normally be assessed under the current Skilled Worker salary options.
When reviewing an employee’s immigration history, employers must examine the date on which the first Certificate of Sponsorship was assigned and the rules under which permission was granted. The application submission date and the date on which the visa was issued may not provide the complete picture.
The standard salary requirement
Under Option A, which is the standard salary option, the worker must ordinarily be paid at least:
- £41,700 per year; and
- 100% of the applicable going rate for the relevant occupation code.
Both requirements must be satisfied. The required salary is therefore the higher of the general threshold and the occupation’s full going rate.
For example, if the applicable going rate is £45,000, the worker must ordinarily receive at least £45,000. If the going rate is £39,000, the salary must ordinarily be at least £41,700.
Checking the general threshold alone is insufficient. Employers must identify the correct occupation code, establish the relevant going rate and adjust that rate where necessary to reflect the employee’s contracted working hours.
Reduced salary options
A worker sponsored under the post-4 April 2024 rules may still qualify under one of the reduced salary options. The principal options are:
- Option B, relevant PhD qualification: at least £37,500 per year and 90% of the applicable going rate.
- Option C, relevant STEM PhD qualification: at least £33,400 per year and 80% of the applicable going rate.
- Option D, eligible Immigration Salary List role: at least £33,400 per year and 100% of the applicable going rate.
- Option E, new entrant: at least £33,400 per year and 70% of the applicable going rate.
These options are not available simply because an employee earns less than the standard threshold. The worker and the sponsored position must satisfy every condition attached to the option being relied upon.
A PhD qualification must be relevant to the sponsored role. For Option C, the qualification must also be in an eligible science, technology, engineering or mathematics subject. A position relying on Option D must meet the applicable Immigration Salary List requirements. A worker relying on Option E must satisfy the new-entrant eligibility provisions and remain within the permitted maximum period.
Specified health and care occupations may be assessed under separate salary options. Certain healthcare and education positions are subject to going rates derived from national pay scales. These roles must be considered under the provisions applicable to their occupation codes rather than under the standard Options A to E.
Transitional occupation provisions for workers sponsored before 22 July 2025
Changes introduced on 22 July 2025 raised the general skill threshold for new Skilled Worker sponsorship. A sponsored position must now ordinarily be skilled to RQF level 6 or above unless it falls within an applicable exception.
Transitional occupation provisions may apply to some employees sponsored in medium-skilled roles before 22 July 2025. As a result, they may continue working in roles below RQF level 6. However, they must have maintained continuous Skilled Worker permission and meet all remaining conditions.
The occupational concession is separate from the salary concession for workers granted permission under the pre-4 April 2024 rules.
An employee whose first Certificate of Sponsorship was assigned between 4 April 2024 and 21 July 2025 may therefore qualify under the transitional occupation provisions while remaining subject to the current salary options. Eligibility to continue in the occupation does not, by itself, entitle the worker to use the lower pre-April 2024 salary thresholds.
Calculating the applicable going rate
Every eligible occupation code has a published annual going rate. For most occupations, the rate is based on a working week of 37.5 hours.
Where the employee’s contracted hours differ from 37.5 hours per week, the going rate must ordinarily be adjusted using the following calculation:
Published annual going rate × contracted weekly hours ÷ 37.5
Employers should use the published annual going rate rather than a rounded hourly figure.
For example, if the published going rate is £45,000 and the employee is contracted to work 40 hours per week, the adjusted going rate would be:
£45,000 × 40 ÷ 37.5 = £48,000
The general annual salary threshold is not ordinarily reduced for part-time work. A part-time employee must therefore meet the full general threshold applicable to the relevant salary option, as well as the appropriately adjusted going rate.
For the purpose of assessing the general salary threshold, only gross earnings attributable to a maximum of 48 hours per week will normally be counted. Additional hours cannot ordinarily be used to compensate for a salary that falls below the required general threshold. The going-rate calculation, however, generally takes account of the full weekly hours recorded on the Certificate of Sponsorship.
Implementing a salary increase before an extension
Where an employee’s existing salary does not meet the relevant requirements, the employer should consider whether an appropriate increase can be implemented before assigning the new Certificate of Sponsorship.
The salary recorded on the Certificate of Sponsorship must reflect the amount the employer genuinely intends to pay. Any increase should therefore be:
- formally approved through the employer’s internal procedures;
- supported by appropriate contractual documentation;
- consistent with the organisation’s payroll arrangements;
- effective within an appropriate period for the sponsored employment; and
- accurately stated on the new Certificate of Sponsorship.
The revised salary must meet both the applicable general threshold and the relevant going-rate requirement. Raising an employee’s salary to £41,700 will not be sufficient where the adjusted going rate for the occupation is higher.
Employers should also consider internal pay structures and equal-pay obligations. They should review the remuneration of comparable employees before approving an immigration-related salary adjustment.
Sponsor compliance considerations
Salary assessment forms part of the employer’s wider sponsor compliance responsibilities. Before assigning a Certificate of Sponsorship for an extension application, the sponsor should confirm that:
- the occupation code accurately reflects the employee’s duties and responsibilities;
- the position remains eligible for sponsorship under the rules in force;
- the salary and weekly working hours are recorded accurately;
- the employee meets both the relevant general threshold and the applicable going rate;
- any reduced salary option is supported by the required evidence;
- any salary increase has been formally approved and reflected in the contract and payroll records;
- reportable changes have been notified through the Sponsor Management System within the required period; and
- appropriate evidence is retained on the employee’s sponsorship file.
An incorrect occupation code, an inaccurate statement of working hours or an unsupported salary arrangement may place both the extension application and the employer’s sponsor licence at risk.
Preparing for upcoming extension applications
Employers should review sponsored employees well before their visa expiry dates. An early assessment provides sufficient time to examine the worker’s immigration history, confirm the correct occupation code, determine the appropriate salary option and calculate the adjusted going rate.
Where an increase is required, advance planning also allows the employer to complete the necessary approval, contractual and payroll processes before assigning the new Certificate of Sponsorship.
The Skilled Worker requirements are subject to amendment. Employers should therefore check the Immigration Rules, Appendix Skilled Occupations and current sponsor guidance at the time of every extension. Previous compliance does not guarantee that an employee’s existing salary will satisfy the requirements applicable to a later application.
Conclusion
Salary compliance in a Skilled Worker extension application requires more than a comparison with the general annual threshold. Employers must consider the worker’s immigration history, the date and basis of their original sponsorship, the correct occupation code, the applicable salary option, contracted working hours and the relevant going rate.
Reviewing these matters at an early stage can prevent delays, provide time for any necessary salary adjustment and reduce the risk of an extension application being refused. It can also help employers demonstrate that they have exercised proper oversight of their sponsor licence duties.
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With over 20 years of experience and a commitment to excellence, Morgan Smith Immigration is your trusted partner for UK immigration matters. Whether you require advice on a sponsored employee’s salary, the applicable going rate or the preparation of a compliant Skilled Worker extension application, our team can provide guidance tailored to your circumstances.
For enquiries or assistance, call us on 0203 959 3335 or email [email protected].
