UK Skilled Worker Visa: Sponsor, Salary Threshold, and Settlement Path

The UK's Skilled Worker visa, launched on 1 December 2020 to replace the old Tier 2 (General) route, is the country's primary work-sponsored immigration path for non-UK and non-Irish nationals. It is points-based in name but rule-based in practice: if you meet the sponsor, salary, English, and skill thresholds, you qualify; if you miss any one of them, you don't. The April 2024 salary overhaul raised the general threshold from \£26,200 to \£38,700 and rewrote how "going rates" are calculated, which materially tightened the route and pushed many mid-wage roles out of scope. This guide walks through the five mechanical requirements, the new entrant discount, the Health & Care Worker sub-route, and the five-year settlement path.

The route at a glance

The Skilled Worker visa sits inside Appendix Skilled Worker of the Immigration Rules. It applies to overseas nationals who have a confirmed job offer from a UK employer that holds a valid Sponsor Licence, where the job is at the required skill level (RQF Level 3 or above — roughly A-level equivalent), and the salary meets both a general threshold and the occupation-specific "going rate." Unlike the predecessor Tier 2 route, there is no longer a Resident Labour Market Test (RLMT) requiring the employer to advertise the role first, no annual cap on the number of visas issued, and no restriction on the type of work the applicant's partner may take once they arrive as a dependant.

Applicants must score 50 points from a fixed menu. Twenty points each are awarded for the sponsor, an eligible job, and the required English level; ten points are awarded for the salary being at or above the minimum threshold. All fifty points are mandatory — there is no sliding scale, and missing the salary by even \£100 means refusal. Crucially, the salary test has two limbs: you must clear both the general threshold (\£38,700 since 4 April 2024) and the going rate for your specific Standard Occupational Classification (SOC) code. The higher of the two figures is the actual floor you must meet.

The sponsor licence requirement

No Skilled Worker visa can be issued without a sponsoring employer, and no employer can sponsor anyone without a Sponsor Licence issued by UK Visas and Immigration (UKVI). The licence is held by the legal entity, not by an individual manager or site, and it covers specific routes — most commonly Worker (which includes Skilled Worker and the senior-or-specialist intra-company transfer route) and Temporary Worker. Licences are valid for four years and must be renewed before expiry.

Obtaining a licence requires the employer to demonstrate HR systems robust enough to comply with sponsor duties. Specifically, UKVI looks for evidence of a designated Authorising Officer, Key Contact, and Level 1 User; documented recruitment and right-to-work processes; a system for tracking migrant employees' contact details, immigration status, and absences; and a commitment to report certain events (a sponsored worker resigning, going missing, or failing to turn up) within ten working days. The licence application fee is \£536 for small employers (turnover under \£10.5 million and fewer than 50 employees) or charitable sponsors, and \£1,476 for medium or large employers. Most decisions are issued within eight weeks, though priority service may be available for an extra fee.

Once licensed, the employer assigns a Certificate of Sponsorship (CoS) to the prospective worker via the Sponsorship Management System. The CoS is an electronic record, not a paper certificate, and it carries a unique reference number the applicant uses in their visa application. Each CoS costs \£239 (small/charitable sponsor) or \£1,000 (medium/large sponsor) and is valid for three months from the assigned date.

The \£38,700 minimum salary threshold

From 4 April 2024, the general salary threshold for Skilled Worker visas rose from \£26,200 to \£38,700. This figure is reviewed periodically and is the headline number applicants must clear before the occupation-specific going rate is even considered. The increase — roughly 48% — was the largest single jump in the route's history and was announced as part of the previous government's package of measures to reduce net migration. The threshold applies to the gross annual salary before tax, paid to the worker for the work described in the CoS.

The threshold is not a fixed number forever. It is pegged to the 25th percentile of full-time Annual Pay for all UK employees, based on the latest ASHE (Annual Survey of Hours and Earnings) data published by the Office for National Statistics. In practice, this means the threshold will likely rise again as wages grow, though the Home Office has said any future increase will be announced with at least several months' notice. Applicants whose salary is set exactly at the threshold should be aware that a future threshold increase could affect extension applications even if their personal salary has not changed.

The threshold can be met by a combination of gross base salary and certain eligible allowances — typically housing or accommodation allowances that are guaranteed, in writing, and not reimbursed expenses. Bonuses, overtime, commission, and shift premiums do not count toward the threshold unless they are guaranteed in the employment contract. This is one of the most common reasons applications are refused: an employer offers a "package" worth \£40,000 but the contract specifies only \£35,000 base, with the rest made up of performance-related bonus that is not guaranteed.

The going rate for the specific SOC code

Every Skilled Worker job is classified under a four-digit Standard Occupational Classification (SOC) code, and each SOC code has its own "going rate" — the minimum salary appropriate for that specific occupation. Going rates are set at the 25th percentile of full-time earnings for that role, again sourced from ASHE data. The going rate is published in the Home Office's eligible occupations and going rates table, which is updated when ASHE is revised.

The applicant must clear both the general threshold and the going rate for their specific SOC code. In practice, this means the actual salary floor is whichever of the two is higher. A software developer (SOC 2123) might have a going rate of around \£49,400, so the floor for that role is \£49,400 — not the \£38,700 general threshold. A care worker (SOC 6135) might have a going rate closer to \£23,200, but the general threshold of \£38,700 still applies, so the effective floor for that role is \£38,700. Applicants and sponsors often misread the table by looking only at the going rate and ignoring the general threshold — or vice versa.

For roles where the going rate is below the general threshold, the higher general threshold always wins. For roles where the going rate is above the general threshold, the higher going rate wins. There is no "averaging" and no negotiation. Both limbs must be met by the salary actually paid to the worker.

*Health and Care Worker route — see below for the different rules that apply to care workers specifically.

English language requirement: B1 CEFR

Every Skilled Worker applicant must demonstrate English language ability at level B1 on the Common European Framework of Reference for Languages (CEFR). B1 is an "intermediate" level — the equivalent of a decent GCSE pass. The Home Office maintains a list of approved English-language test providers (currently IELTS UKVI, Trinity College London, LanguageCert, Pearson PTE Academic UKVI, and IELTS SELT Consortium), and only tests taken at an approved Secure English Language Test (SELT) centre will be accepted.

There are four ways to satisfy the requirement: pass a B1 SELT; hold a degree that was taught in English and is recognised by UK NARIC (now Ecctis) as equivalent to a UK bachelor's degree or above; be a national of a "majority English-speaking country" (the list is in Appendix English Language and includes the United States, Canada, Australia, New Zealand, Ireland, Jamaica, and several Caribbean nations); or have already met the requirement in a previous successful UK visa application, in which case it carries forward. The English test certificate is valid for two years from the date of issue.

Test fees range from around \£150 to \£200 depending on provider and location, and centres can be booked up several weeks in advance — so plan ahead. Failed tests are common; the B1 standard requires the applicant to maintain a conversation, express opinions, and follow routine instructions, all in a timed, recorded interview.

The Immigration Skills Charge

The Immigration Skills Charge (ISC) is a levy paid by the sponsoring employer — not the worker — for every year of sponsorship. The ISC is designed to encourage employers to invest in training UK-resident workers rather than relying on migrant labour. It applies to Skilled Worker and intra-company transfer visas but not to the Health and Care Worker visa route, and not to applications switching from a Student visa where the worker is in a "new entrant" capacity.

The ISC rate is \£1,000 per year of sponsorship for medium or large employers, and \£364 per year for small or charitable sponsors. The charge is multiplied by the length of the CoS — so a three-year Skilled Worker CoS for a medium employer means a \£3,000 ISC. The charge is paid in full at the time of visa application and is non-refundable if the visa is refused or the worker never takes up the role, except in narrow circumstances set out in the Immigration (Skills Charge) Regulations 2017.

The ISC is in addition to (not in lieu of) the CoS fee, the visa application fee, and the Immigration Health Surcharge. Employers should budget for it when costing a sponsorship decision; a single Skilled Worker hire at the medium-large rate on a five-year route to settlement will cost \£5,000 in ISC alone.

The new entrant discount

The April 2024 changes retained a discounted salary framework for "new entrants" — workers at the start of their careers. A new entrant may be paid a salary equal to 80% of the going rate (subject to a separate, lower general threshold of \£30,960), for up to four years of cumulative time on the route. New entrant status is not automatic; the applicant must fall into one of the following categories at the time the CoS is assigned:

• Under 26 years old on the date of application.
• A recent UK graduate — within three years of receiving a UK bachelor's degree, master's, PhD, or eligible postdoctoral qualification, while holding a Student visa or Graduate visa at some point in the past.
• A postdoctoral researcher in a specific science or higher-education role.
• A professional body working towards recognised professional qualification (such as chartered accountant or solicitor training contracts).
• In a UK government-authorised exchange scheme or a recipient of a UK government scholarship.

The discount can be a meaningful lever. A software developer under 26 on a salary of \£39,520 (80% of the \£49,400 going rate) qualifies, where the same person on the same salary at 28 would not. However, the four-year cumulative cap is strictly enforced: once an applicant has been on the Skilled Worker route (or its predecessor Tier 2 (General)) for four years as a new entrant, the discount drops away and the full threshold applies to any extension.

Crucially, the discount applies to extensions as well as initial applications, as long as the applicant still meets one of the qualifying categories. Recent graduates turning 27 during their first Skilled Worker visa can still claim new entrant status on extension, because the graduate category continues for three years after the degree was awarded, even though the under-26 category no longer applies.

The Health & Care Worker visa route

The Health and Care Worker visa is a dedicated sub-route within the wider Skilled Worker framework, introduced in August 2020 for medical professionals working in eligible health or social care roles. It is not a separate visa category in the legal sense — the application is still made under Appendix Skilled Worker — but it triggers three significant practical benefits: a lower visa application fee, exemption from the Immigration Skills Charge, and faster processing.

Eligible roles include doctors, nurses, allied health professionals (physiotherapists, radiographers, occupational therapists, paramedics), and, since February 2022, care workers and senior care workers. Applicants must work for an employer that is either a registered sponsor AND either an NHS trust, an NHS contractor, or a registered care provider regulated by the Care Quality Commission (CQC) in England or its equivalents in Scotland, Wales, and Northern Ireland. Working for a recruitment agency that supplies staff to the NHS does not qualify unless the agency itself is a CQC-registered care provider.

For care workers specifically, the April 2024 changes brought in two additional restrictions. First, sponsors can no longer sponsor care workers in roles where they will be contracted out to other providers — the worker must be directly employed by the regulated care provider. Second, dependants (partners and children) of care workers are no longer permitted to apply for or extend dependant visas, except where the main applicant was already in the route before 11 March 2024. This change has had significant impact on recruitment in the adult social care sector.

Health and Care Worker visa fees are lower than the standard Skilled Worker rate: \£284 for a three-year visa (vs \£719 standard) for applicants outside the UK, with similarly reduced fees for in-country extensions. Decisions are typically issued within three weeks for overseas applications and eight weeks for in-country applications.

The 5-year path to settlement

Skilled Worker visa holders become eligible to apply for Indefinite Leave to Remain (ILR) after five years of continuous residence on the route. The five-year clock starts from the date the applicant first entered the UK on the Skilled Worker visa (or the date their switch to Skilled Worker was granted, if in-country). Time spent on a Student visa, Graduate visa, or Youth Mobility Scheme visa does not count toward the five years — only Skilled Worker (and predecessor Tier 2 (General)) time counts.

Three ancillary requirements apply at the ILR stage. First, the applicant must not have been outside the UK for more than 180 days in any 12-month rolling period during the qualifying residence — this is the "continuous residence" rule and is enforced strictly. Second, the applicant must have met the salary threshold throughout the qualifying period (extensions included); a worker who was sponsored below the new \£38,700 threshold before April 2024 will need to show they were paid at the threshold applicable at the time. Third, the applicant must pass the Life in the UK test and demonstrate English at B1 level (or higher) — the same English standard required for the initial visa is sufficient.

The ILR application fee is \£2,885 per adult applicant (2024 rate). Processing typically takes up to six months, though priority and super-priority services are available for an additional \£500 and \£1,000 respectively. Once ILR is granted, the holder is free of sponsorship — they may change employers, become self-employed, or stop working without affecting their immigration status. ILR is the natural stepping-stone to British citizenship, which becomes available one year after ILR is granted.

Fees and processing timelines

The full cost of a Skilled Worker sponsorship is spread across three payers — the employer, the worker, and (sometimes) the worker's family — and adds up quickly. The table below shows a typical three-year Skilled Worker visa for a medium-sized employer sponsoring a worker from outside the UK with no dependants:

Processing timelines depend on where the application is made and whether priority service is purchased. Standard service for out-of-country applications is three weeks, eight weeks for in-country. Priority service (\£500) brings out-of-country decisions to five working days and in-country to five working days; super-priority (\£1,000) is available in-country and returns a decision by the end of the next working day. The Priority Service is not a guarantee — complex cases (criminal-record issues, prior refusals, unusual employment structures) can be returned at the standard pace even if the priority fee was paid.

Takeaways

The Skilled Worker visa is mechanically predictable but financially heavy. The four mandatory requirements — eligible sponsor, eligible job at RQF 3+, English at B1, and salary clearing both the \£38,700 general threshold and the SOC-specific going rate — are each independently fatal if missed. The April 2024 salary overhaul made the route meaningfully harder to access for mid-wage roles and removed the dependant route for care workers specifically. The new entrant discount remains the most useful lever for younger applicants and recent UK graduates, lowering the going-rate limb to 80% for up to four years. The five-year path to ILR is the main reason most Skilled Worker applicants accept the cost — once ILR is granted, sponsorship ends and the worker is free of Home Office control. Use our UK Indefinite Leave to Remain — Continuous Residence Calculator to track your absences against the 180-day rule from the moment your first Skilled Worker visa is granted.