UK Work visa: how to count the salary, how to use the going rate?

From 4 April 2024, the minimum salary is £38,700. It is, still, however, subject to the going rate. What is a going rate and how to use it together with the blanket minimum of £38,700?

 

The going rates can be found in the Immigration Rules, Appendix Skilled Occupations https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-skilled-occupations . 

 

You’ll see each code has a going rate. The figure you need is “per hour”. The annual figure is based on X number of hours, in this case 37.5 per week, but you need to be careful because it used to be based on 39-hour week while your job may be 40 hours per week. However, if you use the hourly rate, you won’t get it wrong. Then the Sponsor needs enough hours to get the minimum £38,700.  

 

Example: £38,700 is higher than the going rate

 

On the above link, a code 5434 Chefs needs £15.88 per hour, so the Sponsor needs enough hours to achieve £38,700 per year. It would be £38,700 / 52 weeks per year / £15.88 per hour = 46 hours per week. The maximum is 48 hours per week.  

 

A migrant can be paid more per hour and work, say, 40 hours on £18.17 per hour, getting an annual salary of £38,700.  

 

You’ll also see on the above link the annual figure is just £30,960. Although it has the minimum going rate, it doesn’t achieve £38,700 and therefore, does not meet the visa requirements. This is why we don’t use the annual going rate amount in our practice. Instead, we tell the client they have to either just pay more per hour, so the minimum is £38,700 per year; or to increase the weekly hours to achieve £38,700, up to max 48 hours per week. 

 

Example: £38,700 is lower than the going rate

 

Let’s take code 1121 Production Managers. On the above link, it needs £26.41 per hour, so the normal 40-hour week would need £26.41 x 40 x 52 weeks = £54,933 per year. If a worker is offered only £38,700 pa for a 40-hour week, the application will be refused. Although it meets the £38,700, it doesn’t meet the going rate. In this case, the Sponsor can either simply pay more; or reduce the weekly hours. Example: £38,700 / 52 weeks / £26.41 per hour = 28 hours per week. Now it meets all the requirements!  

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