Immigration rules include evolving financial thresholds and protective clauses for long-term residents. The UK ILR transitional salary arrangement is a key provision for Skilled Worker visa holders nearing settlement.
It determines if an applicant must meet the significantly higher new income requirements introduced in 2024 or if they can use the previous, lower salary scales.
This is an expert guide to help you understand these rules which are fundamental for anyone planning their Indefinite Leave to Remain (ILR) application.
What Are the UK ILR Transitional Salary Arrangements?
The Home Office updated the Immigration Rules for the Skilled Worker route on 4 April 2024. The general salary threshold for new applicants increased from £26,200 to £38,700 per annum.
This policy change intends to manage net migration but creates uncertainty for existing visa holders approaching their five-year settlement date.
Transitional arrangements are protections for individuals who were already in the Skilled Worker route before the new rules took effect.
These provisions prevent applicants from being retroactively penalised by sudden policy changes, ensuring they are assessed against salary scales closer to those in place when they first entered the UK.
Who Qualifies for the Transitional Arrangements?
The transitional provisions apply to individuals who held a valid Skilled Worker visa (or its predecessor, Tier 2 General) before 4 April 2024. To benefit from these arrangements, an applicant must have maintained continuous permission in this route when they apply for an extension or for settlement (ILR).
Anyone who received their first Certificate of Sponsorship (CoS) on or after 4 April 2024 does not qualify. These individuals must meet the higher standard threshold of £38,700 or the new median going rate for their job, whichever is higher.
For example, a software developer from Kenya who secured their Skilled Worker visa in 2022 is protected by the transitional rules for their future ILR application.
Calculating the ILR Salary Under Transitional Rules
Accurate salary calculation is essential to avoid refusal. Workers protected by the transitional arrangements must meet a lower general salary threshold and a different "going rate" percentile compared to new entrants. The applicant must be paid at least the higher of these two figures.
General Threshold vs Going Rate
The general salary threshold for protected workers is £29,000 per annum, not £38,700. The going rate for their specific occupation code is based on the 25th percentile of earnings from the official Annual Survey of Hours and Earnings (ASHE) data.
This is a more lenient standard than the median (50th percentile) rate required for new applicants.
The table below summarises the differences between the standard and transitional salary requirements.
| Requirement Category | Standard Rate (Post-4 April 2024) | Transitional Rate (Pre-4 April 2024) |
|---|---|---|
| General Salary Threshold | £38,700 per annum | £29,000 per annum |
| Going Rate Basis | Median (50th Percentile) | 25th Percentile |
| Applicable ASHE Data Source | ASHE 2023 (or most recent) | ASHE 2023 (or most recent, adjusted for percentile) |
Key Dates and the 2030 Deadline
The critical date for eligibility is 4 April 2024. Individuals who obtained their Skilled Worker visa before this date fall under the transitional protection period. The Home Office has confirmed that these arrangements will apply to settlement applications made before 4 April 2030.
This "sunset clause" means that protected applicants must secure ILR before this 2030 deadline to use the lower salary thresholds.
Any settlement applications submitted on or after 4 April 2030 will be assessed against the standard, higher salary requirements in force at that time, regardless of when the applicant first entered the UK.
Exemptions for National Pay Scale Occupations
Certain professions are governed by national pay scales and are exempt from the standard general salary thresholds. This often applies whether the applicant is new to the route or falls under the transitional arrangements.
For example, Health and Care Worker visa holders, teachers, and various medical professionals must meet the salary requirements set by their respective national pay bands.
Applicants must check their specific SOC 2020 occupation code to confirm if they fall under a national pay scale exemption. The rules for these roles are detailed separately within Appendix Skilled Worker of the Immigration Rules.
How Salary Changes Affect Continuous ILR Eligibility
To qualify for ILR, an applicant must demonstrate five years of continuous residence and meet the relevant salary requirements throughout that period.
For those under transitional rules, their salary must not drop below the £29,000 floor or the applicable 25th percentile going rate for their job.
An employer must confirm that the applicant's salary meets the required level at the time of the ILR application and that the job is ongoing. The transitional protection is linked to maintaining continuous permission as a Skilled Worker.
Switching to a different immigration category could void this protection.
Common Pitfalls When Applying the Rules
Misinterpreting the rules can lead to refusal or an unwanted grant of further leave instead of settlement. One common error is the misclassification of the SOC 2020 occupation code.
The UK's job classification system has been updated, and some roles have shifted codes or had their going rates re-evaluated.
Applicants must ensure their Certificate of Sponsorship (CoS) and employer letter accurately reflect their job title, duties, and the correct SOC code.
Any discrepancy between the stated role and the applicant's actual day-to-day responsibilities can trigger a Home Office compliance audit and jeopardise the application.
Documentation and the ILR Application Process
The applicant holds the responsibility for providing sufficient evidence. The Home Office requires specific documents to verify income and continuous employment. A complete list of required documents should be prepared carefully, as missing information can result in a refusal.
Required Documents
Core evidence includes:
- Recent Payslips: Usually covering the 28-day period immediately before the application date.
- Matching Bank Statements: Personal bank statements showing salary deposits that correspond exactly with the net pay on the payslips.
- Employer Letter: A formal letter confirming the job title, SOC code, current salary, that the role is ongoing, and why it is still required by the business.
- P60s: Annual tax summary documents covering the five-year qualifying period can help demonstrate historical salary compliance.
Application Stages
The application process follows a rigid sequence. An application should be submitted no more than 28 days before the five-year qualifying period is complete. Submitting too early is a common reason for invalidation.
- Complete and submit the online SET(O) form.
- Pay the application fee and any optional priority service fees.
- Attend a biometric appointment at a UKVCAS centre.
- Upload all supporting digital evidence through the UKVCAS portal.
Submitting the application before the current visa expires automatically extends the applicant's right to live and work in the UK under Section 3C leave until a decision is made.
Practical Steps for Applicants Approaching Settlement
If you are approaching your ILR eligibility date, confirm when your first Skilled Worker visa was granted to determine if you fall under the transitional arrangement. If you do, ensure your employer understands that the £38,700 threshold is not applicable to your case.
You should verify the correct 25th percentile going rate for your SOC 2020 code well in advance of your application date. This allows time for any necessary salary adjustments to ensure full compliance.
For cases with complex factors like job changes or periods of unpaid leave, it may be prudent to schedule a consultation to review your case specifics.