According to the current tier 2 sponsor guidance (version 4/11) a reduction in a tier 2 migrant's salary, including a reduction in any allowances that were included on the Certificate of Sponsorship, will necessitate a change of employment application. This may, in certain instances, require a fresh resident labour market test to be carried out. This is so UKBA can determine whether the migrant worker is continuing to be paid at least the appropriate rate.
It has been put to UKBA that this requirement is too onerous on employers, as a reduction in allowances does not necessarily mean that the salary package will fall below the minimum rate set by UKBA for a specific role. It has been proposed to UKBA that, where the gross salary package continues to be above the minimum set by UKBA, the reduction should be permitted as a technical change. We will keep you updated on any further developments on this.