By SkilledJobs Editorial · Published 10 June 2026 · Last verified
The UK Tier 2 salary threshold determines the minimum annual pay a skilled worker must earn to qualify for UK work sponsorship. Although the Tier 2 (General) route was replaced by the Skilled Worker visa in December 2020, the term "Tier 2 salary threshold" remains widely used to describe the minimum salary requirements that govern skilled work sponsorship in the United Kingdom. skilled worker visauk work visassponsor licence ukjobs with visa sponsorship ukuk immigration salary rules [related guide](skilled worker visa) [related guide](uk work visas) [related guide](sponsor licence uk) [related guide](jobs with visa sponsorship uk) [related guide](uk immigration salary rules)
Understanding these thresholds is essential for employers sponsoring overseas workers and for applicants planning their UK immigration journey. The rules have undergone significant changes in recent years, with the most recent uprating taking effect in July 2025.
This guide explains the current salary thresholds, occupation-specific going rates, reduced salary provisions, transitional arrangements, and settlement requirements based on official Home Office guidance.
What Is the Tier 2 Salary Threshold?
The Tier 2 salary threshold is the minimum annual salary that an applicant must be paid to qualify for a Skilled Worker visa (formerly Tier 2 General). It serves two main purposes: ensuring that sponsored workers are paid competitively and preventing the undercutting of resident workers in the UK labour market.
The threshold operates on a dual requirement: applicants must be paid the higher of either the general minimum threshold or the occupation-specific "going rate" for their job.
Current Standard Salary Threshold (From July 2025)
From 22 July 2025, the standard general salary threshold is £41,700 per year. This represents an increase from the previous threshold and reflects updated Annual Survey of Hours and Earnings (ASHE) data.
The standard salary rule requires applicants to be paid at least £41,700 per year, or the going rate for their job, whichever is higher. The going rate is the median full-time salary for a particular occupation code, published by the Home Office in official going rates tables.
Each occupation listed under the Skilled Worker route has its own annual going rate. These rates are based on the 50th percentile (median) of full-time earnings in the UK for that occupation, as measured by the Annual Survey of Hours and Earnings.
In April 2024, occupation-specific salary thresholds were increased from the 25th percentile to the 50th percentile (median) of full-time annual earnings, based on ASHE 2023 data. This change was implemented alongside an increase in the general threshold and represented a substantial shift in the salary requirements for many sponsored roles.
When You Can Be Paid Less: New Entrant and Reduced Salary Provisions
The Home Office permits lower salaries in specific circumstances, primarily for new entrants to the UK labour market.
Applicants who are studying towards a UK-recognised PhD or other higher degree
Applicants who are recent graduates (within a certain timeframe of completing a UK qualification)
Applicants in a recognised professional training role
The reduced salary floor of £33,400 applies to new entrants who meet these conditions, provided their pay is at least 70% of the going rate for their occupation.
Historical Context: How the Threshold Has Evolved
The Tier 2 salary threshold has undergone multiple revisions since the route was introduced.
The shift from the 25th percentile to the 50th percentile in April 2024 marked a deliberate policy change aimed at ensuring sponsored workers were paid closer to median earnings for their occupation, reducing the potential for wage suppression.
Transitional Arrangements for Existing Visa Holders
The Home Office has implemented transitional provisions to protect workers whose Certificates of Sponsorship (CoS) were issued under earlier rules.
These transitional thresholds ensure that existing visa holders are not immediately subject to significantly higher salary requirements when extending their permission, allowing employers and employees time to adjust.
Indefinite Leave to Remain (ILR) Salary Requirements
Salary thresholds for settlement differ from those required for initial sponsorship and extensions. For applicants seeking to settle permanently in the UK, the salary requirement is generally higher.
The ILR salary threshold is a crucial consideration for long-term career planning. Applicants should ensure their salary progression meets this requirement well before they become eligible to apply for settlement.
How Salary Is Calculated
The Home Office has detailed rules on what counts towards the salary requirement and how salary must be calculated.
Gross Annual Salary
Salary refers to gross annual pay before tax and National Insurance deductions. The figure used must be the guaranteed annual salary stated in the Certificate of Sponsorship and employment contract.
What Counts Towards the Salary Threshold?
The following can count towards the salary threshold:
Basic gross pay (before tax)
Guaranteed allowances (such as London weighting) that are guaranteed for the duration of the applicant's employment
Other benefits in kind (accommodation, shares, health insurance)
Allowances intended to cover business expenses (travel, subsistence)
Pro-Rata Calculation for Part-Time and Non-Standard Hours
If the role is part-time or has working hours below the standard for the occupation, the salary must be pro-rated accordingly. The pro-rated salary must still meet the relevant threshold after adjustment.
For example, if the going rate for a full-time role (37.5 hours per week) is £45,000 per year, and the applicant works 30 hours per week, the pro-rated salary would be calculated as:
(30 ÷ 37.5) × £45,000 = £36,000 per year
This pro-rated figure must still meet the applicable general threshold (for instance, £41,700 for roles starting from 22 July 2025) or the going rate, whichever is higher, after the pro-rata adjustment is applied. If the pro-rated salary falls below the threshold, the applicant will not be eligible unless a reduced salary provision applies.
Immigration Salary List (ISL) and Shortage Occupations
The Immigration Salary List (formerly the Shortage Occupation List) identifies occupations where the UK has a recognised labour shortage. Occupations on the ISL may attract lower salary thresholds or other concessions.
Historically, shortage occupations received a 20% discount on the general salary threshold. Following the July 2025 changes, the expanded ISL continues to offer this discount for eligible roles, including certain occupations below RQF Level 6 during the transitional period.
Employers and applicants should consult the current ISL to determine whether a specific occupation qualifies for reduced thresholds.
Practical Considerations for Applicants and Sponsors
Certificate of Sponsorship (CoS) Requirements
The salary stated on the Certificate of Sponsorship must be accurate and reflect the actual contractual salary. If the salary falls below the required threshold, the Home Office will refuse the application.
Employers must ensure that the salary stated in the CoS matches the employment contract and satisfies both the general threshold and the occupation-specific going rate.
Annual Salary Reviews and Pay Increases
Sponsored workers whose salary falls below the threshold due to changes in rules (for example, uprating of going rates) may face difficulties when applying to extend their visa. Employers should conduct regular salary reviews to ensure ongoing compliance.
Switching Employers and Roles
If a Skilled Worker visa holder wishes to switch employers or change roles, they must apply for a new visa with a new Certificate of Sponsorship. The salary for the new role must meet the threshold applicable at the time of application, which may differ from the threshold in place when the original visa was granted.
Currency Conversion and Overseas Earnings
Where an applicant is paid in a foreign currency, the Home Office uses official exchange rates (OANDA) as of a specified date to convert the salary to GBP. The converted salary must meet the threshold.
Changes on the Horizon: What to Expect After 2026
The transitional arrangements currently in place, including protections for occupations below RQF Level 6 and reduced thresholds for legacy CoS holders, are scheduled to phase out by December 2026.
After this date, all Skilled Worker applications are expected to comply fully with the RQF Level 6 skill requirement and the standard salary thresholds, with no further transitional protections. Employers and applicants should begin planning now to ensure roles and salaries are aligned with the post-2026 framework.
Further uprating of the general threshold and going rates is likely, as the Home Office typically reviews these figures annually based on updated ASHE data.
From 22 July 2025, the standard salary threshold is £41,700 per year, or the occupation-specific going rate, whichever is higher.
Can I apply for a Skilled Worker visa if my salary is lower than £41,700?
Yes, if you meet the criteria for a new entrant (for example, under 26, recent graduate, or in professional training) and your salary is at least £33,400 per year and at least 70% of the going rate for your occupation.
What is the going rate for my job?
The going rate is the median salary for your occupation code, published by the Home Office. You can check the specific going rate for your job in the official going rates table on GOV.UK.
Do bonuses and overtime count towards the salary threshold?
No. Only guaranteed basic salary and certain guaranteed allowances (such as London weighting) count towards the threshold. Overtime, discretionary bonuses, employer pension contributions, and benefits in kind do not count.
What salary do I need for indefinite leave to remain (ILR)?
For most Skilled Worker visa holders, you must be paid at least £35,800 per year when you apply for ILR.
Will the salary threshold increase again?
The Home Office reviews salary thresholds annually, typically based on updated earnings data from the Annual Survey of Hours and Earnings. Further increases are likely in future years.
What happens if my employer cannot increase my salary to meet the new threshold?
If your salary falls below the threshold when you apply to extend your visa, your application may be refused unless you qualify under a transitional arrangement or reduced salary provision. You should discuss salary adjustments with your employer in advance of your extension application.
Are there different thresholds for different regions of the UK?
No. The salary thresholds apply uniformly across the UK, although certain allowances (such as London weighting) can be included in the salary calculation if they are guaranteed.
Final Thoughts
The UK Tier 2 salary threshold—now primarily governed by Skilled Worker visa rules—continues to evolve as the Home Office seeks to balance labour market needs with immigration control. The increase to £41,700 from July 2025, combined with the shift to RQF Level 6 roles, represents a significant tightening of the requirements.
Employers must ensure their sponsored roles meet both the general threshold and the occupation-specific going rate, and applicants should plan their salary progression carefully to meet extension and settlement requirements. Transitional protections offer some relief for existing visa holders, but these will phase out by the end of 2026.
Staying informed of policy changes, consulting the latest Home Office guidance, and seeking professional immigration advice when necessary are essential steps for navigating the UK's skilled worker sponsorship system successfully.
