WHAT CAN BE INCLUDED IN THE MINIMUM WAGE OF A SKILLED WORKER
On 1/12/2020, the Skilled Worker visa replaced the general Tier 2 visa regime. The rules on what can be included in the minimum wage for the Skilled Worker visa are different from what could be taken into account. counts towards the minimum wage for the Tier 2 general visa.
To start with, the minimum wage for a skilled worker must be the highest of the following: £25,600, £10.10 an hour or the Soc code minimum. There are some exceptions where a lower salary may be paid. We explain this in more detail here. We have also prepared a calculator to help sponsoring employers and applicants evaluate government fees for the Skilled Worker Visa.
WHAT MAY BE INCLUDED IN THE MINIMUM WAGE FOR A SKILLED WORKER
Only the guaranteed base gross salary can be included in the minimum salary for the skilled worker visa. No other wages and benefits should be considered when assessing the minimum wage for a skilled worker. Examples of salary and benefits that are not included are listed in the Immigration Rules, paragraph SW 14.2 (this list is not exhaustive).
Paragraph SW 14.2 states that salary does not include other compensation and benefits, such as any of the following:
(a) wages which cannot be guaranteed because the nature of the work involves fluctuating hours; Where
(b) additional compensation such as shift work, overtime or bonus (whether guaranteed or not); Where
(c) employers’ pension and national insurance contributions; Where
(d) allowances, such as housing or cost of living allowances; Where
(e) benefits in kind, such as stocks, health insurance, tuition or college fees, company cars, or food; Where
(f) one-time payments, such as “golden hellos”; Where
(g) any payment related to immigration costs, such as immigration fees or health costs; Where
(h) payments to cover business expenses, including (but not limited to) travel to and from applicant’s country of residence, equipment, clothing, travel or living expenses.
EXCEPTIONS WHEN ALLOWANCES CAN BE INCLUDED IN THE MINIMUM WAGE
In paragraph 14.5 of the Skilled Worker Visa Rule, there are transitional provisions for Tier 2 (General) migrants applying for leave to remain (extension of their visa) or settlement (permit to remain indefinitely – ILR). ). Their salaries for visa extension or ILR may continue to include allowances, provided all of the conditions listed below are met:
- they ask to extend with the same sponsor
- the application date is before December 1, 2026
- benefits are guaranteed
- benefits will be paid for the duration of the claimant’s authorization (one-time premiums are not included and cannot be pro-rated)
- allowances would be paid to a local worker settled in similar circumstances (such as weighting in London)
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.