Updated Skilled Worker Sponsorship Salary Requirements | July 2025
This article was updated in July 2025 to reflect the latest salary threshold changes effective from 22 July 2025.
The Skilled Worker visa route allows UK employers to recruit talented individuals from overseas in order to fill key roles within their organisations. This sponsorship pathway is crucial in helping businesses address skills shortages and support growth in a competitive labour market.
From 2025, the Home Office has introduced new salary requirements for sponsoring skilled workers. These updates include increases to both the general salary threshold and the specific “going rates” for many occupations.
Understanding these changes is essential for employers who rely on skilled sponsorship. Staying compliant with the updated rules is not only necessary to secure and retain international talent, but also vital for workforce planning and avoiding expensive Home Office penalties.
What Are the 2025 Changes to Salary Requirements?
From 2025, the Home Office significantly raised the minimum salary requirements for Skilled Worker sponsorship. Initially, the general salary threshold increased from £26,200 to £38,700 per year.
However, from 22 July 2025, this general threshold is rising further to £41,700 per year.
Additionally, the Home Office has updated the “going rates,” which set the minimum salary for specific occupations, and these have also increased across most skilled roles. Employers must pay whichever is higher: the general threshold or the occupation’s going rate.
Beyond the salary, a key change from July 2025 is the increased required skill level. Jobs must now meet RQF Level 6 or above (equivalent to bachelor’s degree level), unless the role is listed on the Temporary Shortage List.
By introducing these changes, the government aims to protect the resident labour market, reduce exploitation, and ensure that employers only sponsor overseas workers for roles that genuinely cannot be filled locally. The intention is to encourage employers to offer competitive salaries that reflect the true value of skilled roles in the UK.
Salary Requirement Comparison
- Previous general salary threshold: £26,200
- April 2024 general salary threshold: £38,700
- New general salary threshold from 22 July 2025: £41,700
- Previous going rates: Varied by occupation, but generally lower
- New 2025 going rates: Increased across most skilled roles
There are also updated, higher discounted thresholds for PhD roles and new entrants:
- PhD in non-STEM subjects: £37,500
- PhD in STEM subjects or new entrant roles: £33,400
- Legacy workers (in roles since before April 2024): £31,300
Employers should carefully review these updated figures to ensure compliance when planning new hires or renewing sponsorships under the Skilled Worker route.
How Do Immigration Cost Deductions Affect Salary Calculations?
Employers often cover visa-related costs such as the application fee and Immigration Health Surcharge when sponsoring a Skilled Worker. In some cases, employers may ask the employee to repay these costs, either through salary deductions or a formal loan agreement.
However, current Home Office rules require employers to average the total repayable amount over the entire sponsorship period, rather than making deductions over a short period.
Salary Deduction Example
In this example, an employer pays £6,926 in visa costs (application fee plus Immigration Health Surcharge) and asks the employee to repay this through salary deductions. The worker has a sponsorship for five years. Even if the actual repayments are made within the first year, the Home Office requires that the £6,926 be spread over the five-year sponsorship period. This results in a yearly deduction of £1,385.20 (£6,926 ÷ 5 years).
If the “going rate” for the role is £49,400 per year, the employer must pay the worker at least £49,400 plus £1,385.20, which totals £50,785.20 per year. This ensures that, after averaging the deductions, the worker’s salary still meets the required threshold.
As a result, employers cannot simply pay the going rate for a role and then deduct immigration costs, as this would reduce the worker’s qualifying salary below the Home Office minimum. To remain compliant, employers must increase the minimum salary to account for any deductions and ensure that repayments do not undermine the worker’s eligibility for sponsorship.
Compliance Checklist for Employers
Employers are advised to:
- Check the latest salary thresholds for each role, including occupation-specific going rates and any applicable discounted thresholds.
- Include and account for any salary deductions when calculating offers.
- Ensure contracts and loan agreements are clear, transparent, and compliant.
- Update sponsorship and HR processes before hiring or renewing any visas.
- Be aware of the new RQF Level 6 skill requirement and the impact of the Temporary Shortage List, which may allow some roles at lower skill levels under strict conditions.
Implications for Skilled Workers
Prospective and current skilled workers should be aware that the new rules may affect their eligibility for sponsorship and their actual take-home pay. It’s important to understand how any deductions, such as repayments for visa costs, will impact the “qualifying” salary assessed by the Home Office. Always review your employment terms carefully to ensure you meet the required thresholds and fully understand your net pay.
Further Guidance and Resources
For detailed information, visit the official Home Office Skilled Worker visa guidance and salary requirements.
If you need tailored advice or support with Skilled Worker sponsorship, our experienced team at Cartwright King can help. Immigration rules can be complex, and getting expert guidance ensures you remain compliant and secure the talent your business needs.
Need help with Skilled Worker sponsorship? Contact our team today.
Legal Disclaimer
All advice is correct at time of publication.