“Can I Reduce a Sponsored Worker’s Salary After the Visa Is Granted?” — it’s a question that sits at the intersection of business decision-making, workforce planning, and regulatory responsibility. For any employer sponsoring overseas talent, altering pay is far more than a routine administrative adjustment; it carries implications for compliance, reporting, and the ongoing stability of the employment relationship. Understanding the broader context and approaching such changes with care ensures that both the organisation and the sponsored worker navigate the process responsibly and strategically.
Salary requirements & key thresholds
As of mid-2025, the Skilled Worker route salary thresholds have been revised, establishing clear minimums that employers must observe. A sponsored role must meet or exceed the higher of the applicable occupation’s going rate or the standard threshold. Any salary reduction cannot be assumed automatically permissible; unless specific exceptions apply, lowering pay may compromise the eligibility of the role. Consequently, employers and sponsored workers must ensure that any adjustment continues to satisfy the route’s requirements. The initial visa approval alone does not guarantee ongoing compliance; maintaining appropriate remuneration is essential throughout the sponsorship period.
When might a salary reduction be allowed?
Adjusting a sponsored worker’s salary is not a decision to be taken lightly. While there are scenarios in which a reduction may be permissible, each situation requires careful consideration to ensure that the role continues to meet the conditions of sponsorship. Changes in hours, role responsibilities, or temporary arrangements must all be assessed in terms of compliance, and the potential impact on both the worker’s visa and the sponsor’s obligations must be carefully weighed. Clear communication and thorough documentation are central to managing these adjustments responsibly.
Common examples where a salary change might be considered include a transition to part-time work, periods of statutory leave such as parental or shared parental leave, or a temporary adjustment during internal promotions or probationary periods. Even in these instances, the sponsor must ensure that the revised salary and role remain eligible under the relevant immigration rules. Any material change that could affect compliance should be documented and reported to the appropriate systems or authorities within the required timeframe, maintaining transparency and accountability throughout the process.
Crucially, sponsors must be aware that if a salary reduction causes the remuneration to fall below the required threshold, and no valid exception applies, they are unable to continue sponsoring the worker for that role. Failure to address such situations appropriately may put both the worker’s visa and the sponsor’s licence at risk. By carefully evaluating each scenario, maintaining accurate records, and adhering to reporting obligations, employers can manage salary adjustments while preserving compliance and protecting the integrity of their sponsorship arrangements.
Reporting obligations and compliance risk
One of the most common areas of non-compliance occurs when a sponsored worker’s circumstances change and the sponsor does not report it promptly. Current guidance emphasises that sponsor duties include notifying UK Visas and Immigration of relevant changes within 10 working days.
Typical changes requiring notification include alterations to salary, job title, work location, prolonged absences, or breaches of visa conditions. In the case of a salary reduction, sponsors should carefully consider whether the revised pay continues to meet the immigration requirements for the role and occupation code. If it does not, a new Certificate of Sponsorship (CoS) may need to be assigned, or the worker’s visa updated accordingly. Failure to take these steps can compromise both the worker’s immigration status and the sponsor’s obligations.
Non-compliance carries significant risks. Consequences can range from downgrades in sponsor rating and suspension or revocation of the sponsor licence to curtailment of the worker’s leave and potential reputational damage. Sponsors must therefore approach any salary adjustment with diligence, ensuring all reporting obligations are met and that compliance remains central to their employment practices.
Practical examples
- Example 1: Part-time transition
An employee sponsored under the Skilled Worker route initially works 40 hours per week and is paid £42,000 per annum — above the minimum threshold. Six months later, they moved to a 30-hour contract at £32,000 per annum. The sponsor must check: does £32,000 meet the occupation’s going rate or minimum threshold? If not, the salary reduction triggers non-compliance. A report via SMS and possibly a CoS or visa variation will be required. - Example 2: Promotion with salary dip
An individual moves from role A to role B within the same company; role B has a slightly lower salary (e.g., £38,000) because the job is more research-led but requires a PhD discount. If the role qualifies under the PhD-relevant discount (Option B) and meets the reduced threshold (e.g., £37,500), the salary reduction may still be compliant. The sponsor must document eligibility and ensure ongoing compliance. - Example 3: Parental leave
A sponsored worker takes statutory shared parental leave for three months; during this period, statutory pay applies and salary drops significantly. The sponsor must consider whether the leave ought to be reported, whether salary reduction triggers a non-compliance event, and whether employment continues in a role compliant with the immigration rules. The sponsor should keep records and assess whether a duty to notify applies.
Key risks of falling below required salary levels
- If the worker’s pay falls below the required threshold and the sponsor continues without reporting or remedying the situation, the worker’s visa may be curtailed.
- The sponsor could face enforcement action, including licence downgrade, suspension or revocation.
- Future visa applications, extensions or switches could be jeopardised.
- For the worker: job offer becomes insecure; finding replacement sponsorship within a short timeframe is high‑risk.
- From a compliance perspective: the deduction of salary (e.g., salary sacrifice) that effectively places pay below the threshold may be treated as non-compliance.
Sponsor checklist when contemplating a salary reduction
- Confirm the occupation code, going rate and minimum salary requirement for the role.
- Assess whether the proposed salary remains compliant under the Immigration Rules.
- Evaluate whether the job duties or hours are changing; if yes, consider whether a new CoS or worker visa update is required.
- Keep full documentation of the change: internal memo, new contract, salary records, SMS records.
- Report any material change in the worker’s circumstances via SMS within 10 working days if required.
- Check that pay deductions, salary sacrifices or benefits do not reduce the ‘salary’ below the required threshold.
- Consider seeking immigration legal advice if the change is complex.
- Inform the worker of potential implications and maintain open communication.
Closing thoughts!
Ultimately, adjusting a sponsored worker’s salary is not just an internal HR decision — it is a matter that touches directly on compliance, responsibility, and strategic planning for both employers and employees. Approaching any change with care, attention, and foresight ensures that the sponsorship relationship remains secure and well-managed. For ongoing insights, practical guidance, and the latest updates on navigating the sponsorship framework, always follow SponsorLicenceHub — your go-to resource for staying informed, prepared, and ahead in the evolving world of UK sponsorship.
