Skilled Worker salary rules in 2026: the £41,700 threshold, going rates and the discounts explained
How much you must pay a sponsored Skilled Worker, how the general threshold and the going rate interact, the lower thresholds for new entrants, PhD holders and the Immigration Salary List, and how part-time hours, allowances and overtime are treated.
Published 22 October 2026 · 5 min read

Checked against official guidance on 22 October 2026. This post reflects GOV.UK: Immigration Rules Appendix Skilled Worker, and Sponsor guidance part 2 section S4 (version 10/26). Guidance changes, so check the linked pages for the current version. This is information, not legal advice.
Two tests, and you must pass both
Every Skilled Worker salary is checked against two figures, and the worker must be paid at least the higher of them:
- A general salary threshold, which applies to everyone on that option.
- The going rate for the job's 4-digit occupation code, or a set percentage of it.
The general threshold is the headline number people quote. The going rate is the one that catches employers out, because for many professional roles it is well above the threshold.
The main thresholds
The table in rule SW 4.4 of Appendix Skilled Worker sets out the options. For most new sponsorships today, the relevant ones are:
- Option A, the standard route: at least £41,700 a year and 100% of the going rate.
- Option B, a PhD relevant to the job: at least £37,500 and 90% of the going rate.
- Option C, a PhD in a science, technology, engineering or maths subject relevant to the job: at least £33,400 and 80% of the going rate.
- Option D, a job on the Immigration Salary List: at least £33,400 and 100% of the going rate.
- Option E, a new entrant: at least £33,400 and 70% of the going rate.
- Option K, certain listed health and education jobs on national pay scales: at least £25,000 and the going rate.
Lower options (F to J, from £31,300 down to £25,000) are only available to people already on the route under the rules before 4 April 2024 who have held permission continuously since, and to some health and care roles. These transitional options run for applications made before 4 April 2030.
Who counts as a new entrant
Option E is worth knowing about because it covers a lot of early-career hires. Under SW 12.2 the worker must meet one of several conditions, for example being under 26 on the date they apply, or switching from the Student or Graduate route. New entrant status is time-limited, so the total time on the route as a new entrant is capped; check SW 12 for the detail before you rely on it.
Part-time hours and the going rate
Going rates are published for a 37.5-hour week. If the worker's hours are different, SW 14.4 says the required going rate is pro-rated: going rate × weekly hours ÷ 37.5, then multiplied by 0.9, 0.8 or 0.7 if the option uses a percentage. The general threshold is not pro-rated in the same way, so a part-time worker on option A still needs at least £41,700 a year.
A worked example: if the going rate for an occupation is £48,000 for 37.5 hours and you sponsor someone for 30 hours a week, the pro-rated going rate is £48,000 × 30 ÷ 37.5 = £38,400. On option A they still need at least £41,700, because that is higher. On option E (new entrant) the going rate figure becomes 70% of £38,400, which is £26,880, so the £33,400 threshold applies.
Our free going rate lookup shows the published rate for each occupation code and does this pro-rating for you.
What counts as salary
Only guaranteed basic gross pay counts for Skilled Workers. Section S4.14 of the sponsor guidance says allowances do not count unless the Immigration Rules allow them, and the same is true of bonuses, overtime and benefits in kind. Pay must go into the worker's own UK bank account, or onto a prepaid card with evidence; cash is not allowed (S4.17 to S4.18).
Only pay for the first 48 hours a week counts towards the thresholds (SW 14.3), averaged over a cycle of up to 17 weeks where hours vary. And each pay period must meet the going rate for every hour actually worked (SW 14.3B), so you cannot meet the annual figure while underpaying some months.
When pay falls
If you reduce a sponsored worker's salary for any reason other than absence, you must report it within 10 working days. If the new salary no longer meets the route requirements, you must stop sponsoring them (S4.29 to S4.31). There are narrow exceptions, such as a phased return to work for health reasons supported by occupational health.
Absence is treated separately. Statutory maternity, paternity, adoption, shared parental and neonatal care leave, sick leave, jury service and legal industrial action are permitted, even though pay drops. Other unpaid or reduced-pay absence of more than 4 weeks in total in a calendar year must be reported, and you must justify continuing sponsorship.
Older workers on the route
Workers granted permission under the rules before 22 July 2025 can continue to use the older occupation tables (1a, 2aa and 3a) when they extend. Workers first sponsored before 4 April 2024 can use the transitional options F to J until 4 April 2030. Check which set applies before you assign a Certificate for an extension, because getting it wrong means a refused application.
A practical checklist before you assign a Certificate
- Confirm the occupation code really matches the job duties, not just the job title.
- Look up the going rate for that code and pro-rate it for the contracted hours.
- Decide which option applies, and keep evidence of why (date of birth for new entrants, the PhD certificate, the Immigration Salary List entry).
- Compare the guaranteed basic pay, excluding allowances and overtime, with the higher of the two figures.
- Check your payroll will pay at least that amount in every pay period.
How Zetta HR helps
Zetta HR records the salary and hours on each Certificate and runs a pay reconciliation against what was actually paid, so a month that falls short shows up with the difference highlighted. Its free going rate lookup shows the published rates with part-time pro-rating.
Thresholds change and the rules have many exceptions. Zetta HR does not decide which option applies to a worker; check Appendix Skilled Worker or speak to a qualified immigration adviser.
Sources
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