Key Takeaways
- Most Skilled Workers must be paid at least £41,700 a year or the going rate for their occupation, whichever is higher.
- Since 8th April 2026, paragraph SW 14.3B of Appendix Skilled Worker means salary is also checked across pay periods, not only as an annual figure.
- Each pay period has to meet the going rate for every hour worked, and pay over rolling windows of three months, 12 weeks or 17 weeks must reach a set share of the annual salary.
- Applications made with a Certificate of Sponsorship assigned before 8th April 2026 are normally decided under the previous rules.
The contract says £45,000 a year, comfortably above the threshold. Then your sponsored worker takes a month of unpaid leave, a payroll error delays part of their salary, or their hours creep up without any change in pay. Under the old approach, the annual figure usually covered it. Now it might not.
Since April 2026, the Home Office can look at a sponsored worker’s pay period by period, not just at the salary on the Certificate of Sponsorship. For HR and payroll teams, that turns what used to be a once-a-year check into an ongoing compliance duty.
This guide explains the current salary threshold, how the new pay-period rule works and where sponsors are most likely to get caught out. If you’d like your arrangements checked, Osbourne Pinner offers a free 30-minute consultation with our skilled worker sponsor licence solicitors.
What is the Skilled Worker salary threshold?
According to GOV.UK, the minimum salary is usually whichever is higher of £41,700 a year or the going rate for the type of work. Each occupation code has its own going rate, so a job paying above £41,700 can still fall short if its going rate is higher.
Some workers can be paid less though. A salary of at least £33,400 can be accepted with a discounted going rate. That includes new entrants, workers with a relevant STEM PhD or postdoctoral researchers. The same £33,400 floor applies to jobs on the Immigration Salary List too. A relevant PhD in another subject needs at least £37,500.
Some healthcare and education roles follow national pay scales instead. For more information, GOV.UK sets out the full rules on when you can be paid less.
Only guaranteed basic pay counts. Bonuses, commission, overtime and most allowances don’t count towards the threshold, however regularly they’re paid.
What changed on 8th April 2026?
The Statement of Changes published on 5th March 2026, known as HC 1691, inserted a new paragraph (SW 14.3B) into Appendix Skilled Worker. It came into force on 8th April 2026.
Before then, compliance was assessed mainly against the annual salary in the contract and on the Certificate of Sponsorship. Uneven months could often be averaged out over the year. The new rule adds a test based on what goes through payroll in defined periods.
How does the pay-period rule work?
SW 14.3B requires the worker to be paid in pay periods of at least monthly frequency, or as their contract otherwise specifies. It then sets three tests:
- The salary paid in each pay period must at least equal the going rate for every hour worked in that period.
- If the worker is paid monthly or less often, the salary over any three-month period needs to be at least a quarter of the required annual salary. If they’re paid more often, such as weekly, the salary over any 12-week period must be at least 12/52 of it.
- If regular hours vary from week to week, the sponsor has to confirm the working pattern, and the salary over any 17-week period must be at least 17/52 of the required annual salary.
Crucially, the windows are rolling. Any three consecutive months can be tested, so a short month can’t simply be balanced against a good one from earlier in the year.
A worked example
Let’s say there’s a worker whose required salary is £41,700, paid monthly at £3,475. Over any three months, they must receive at least £10,425. If they take unpaid leave and one month’s pay drops to £2,800, that three-month window totals £9,750, which is £675 short.
Unless the rules allow for the reduction, the sponsor is exposed, even though the annual figure in the contract never changed.
Where are sponsors most likely to get caught out?
Most problems come from ordinary payroll events rather than deliberate underpayment. Watch out for:
- Unpaid leave, sickness on reduced pay or a temporary drop in hours.
- Payroll errors, late payments or a first pay run that only covers part of a month.
- Workers regularly doing extra unpaid hours, which can push their pay per hour below the going rate.
- Pay structures that rely on overtime, commission or allowances to reach the threshold.
- Variable-hours roles where the working pattern hasn’t been confirmed.
- Salary deductions that reduce pay in a particular period.
The rules and Home Office guidance make some allowance for certain deductions and types of leave, but the detail is technical. If a sponsored worker’s pay is going to dip, take advice before it happens rather than after.
Who does the rule apply to?
Under the transitional provisions in HC 1691, applications made with a Certificate of Sponsorship assigned before 8th April 2026 are normally decided under the rules in force on 7th April 2026. However, applications made with a certificate assigned from 8th April onwards are assessed under the new framework.
In practice, sponsors should treat the pay-period rule as the standard for their whole sponsored workforce. Workers who extend their permission, change jobs or later apply for settlement will face the rules in force at that time, and payroll records built up now will be the evidence.
What happens if pay falls short?
Paying sponsored workers correctly is one of your core duties as a sponsor. The Home Office makes regular checks with HMRC to confirm that sponsored workers are being paid appropriately, and salary is one of the main things compliance officers examine on a visit. Our guide to sponsor licence compliance visits explains what they look at.
A shortfall can lead to a downgraded licence, suspension or even revocation in serious cases. It can also cause problems for the worker when they next apply, because the salary requirement might not be met. Changes to a sponsored worker’s salary also need to be reported through the sponsorship management system within the required time.
What else is changing for Skilled Worker salaries?
Since 22nd July 2025, most new Skilled Worker roles must be at degree level, and the general threshold rose from £38,700 to £41,700. Entries on the time-limited Temporary Shortage List, which allowed some lower-skilled roles, are mostly due to end in December 2026 too. That’s unless the Migration Advisory Committee recommends keeping them.
If your recruitment plans rely on any shortage-list roles, check the current position before assigning a certificate, and again before the worker applies. Our guide to Skilled Worker sponsor licence requirements covers the wider rules sponsors need to meet.
How can you stay compliant?
A few practical steps go a long way:
- Audit payroll for every sponsored worker against the three-month, 12-week or 17-week windows that apply to them.
- Make sure the contract, the Certificate of Sponsorship and the payroll frequency all match.
- Confirm and record working patterns for anyone on variable hours.
- Track hours worked as well as pay, so extra hours don’t push hourly pay below the going rate.
- Set a clear process for unpaid leave and reduced hours, including when to take advice and what to report.
- Train HR and payroll staff so they recognise sponsored workers and flag anything unusual.
Get your sponsored workers’ pay checked
A single overlooked payroll issue can put both your licence and your workers’ immigration status at risk, and the new pay-period rule makes those issues easier for the Home Office to find. Checking your arrangements now is far cheaper than dealing with a suspension later.
At Osbourne Pinner, our skilled worker sponsor licence solicitors help sponsors audit salary compliance, fix payroll gaps and respond to Home Office concerns. We’ll explain where you stand in plain English and give you a clear view of costs before you commit to anything.
Please note that this article is for informational purposes only and does not constitute legal advice. We always recommend speaking to a qualified solicitor for advice tailored to your specific circumstances.
We offer a free 30-minute consultation to discuss your situation, Monday to Friday. You can speak with us via video call or visit our offices in Piccadilly Circus, Canary Wharf, Wimbledon, Harrow or Manchester. To arrange your consultation, call 0203 983 5080, email [email protected] or complete the form below. We do not offer Legal Aid.
