Skilled Worker salary thresholds: what counts towards £41,700?

Understanding what counts towards the Skilled Worker salary threshold is crucial for both employers and sponsored workers. Many applications under the Skilled Worker route fail because of confusion about which elements of remuneration count and which do not.

What counts?

Only your guaranteed gross basic salary counts towards the minimum salary threshold for the Skilled Worker route. This is the fixed amount in your employment contract and Certificate of Sponsorship (CoS), based on your contracted hours.

What does not count?

This is where applications can go wrong. The following do NOT count:

• Bonuses and commission: even if paid regularly, any discretionary or performance-related pay is excluded;
• Overtime: even if frequent or expected, only contracted hours count;
• Benefits in kind: accommodation, meals, transport, healthcare, or stock options do not count;
• Pension contributions: employer pension payments are excluded regardless of value.

Critical compliance risks

Any change that reduces salary below £41,700 (or below the going rate for your role, whichever is higher) after visa grant can trigger:

• Breach of sponsor duties;
• Visa curtailment; or
• Sponsor licence enforcement action.

Not all salary changes can be made without Home Office notification, and some require a new application entirely. It is therefore important that sponsors understand their reporting obligations following a change of salary for a sponsored worker.

Exceptions

Lower thresholds may apply in limited cases:

• New entrants to the labour market;
• PhD-level roles; or
• Transitional arrangements for older visa holders.

These exceptions are narrowly defined. Do not assume they apply without checking the Immigration Rules or consulting an immigration solicitor.

Tips

• Check your occupation code early, as the going rate for the job role may exceed £41,700;
• Check the minimum salary threshold for the number of contracted hours worked;
• Ensure your CoS and employment contract match exactly;
• Never rely on bonuses or allowances to reach the threshold;
• Review salary structure before issuing a CoS, not after;
• Get professional advice before making post-grant salary changes.

Bottom line

The £41,700 threshold seems straightforward, but salary calculation mistakes continue to lead to refusals and cause compliance issues. Getting it right from the start protects both sponsored workers and sponsors.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on all UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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