Skilled Worker Visa Salary Thresholds 2025

Skilled Worker Visa Salary Changes from 22 July 2025

From 22 July 2025, the UK government is increasing the salary thresholds for the Skilled Worker visa route. These changes apply to all Certificates of Sponsorship (CoS) issued on or after this date and were outlined in the Statement of Changes to the Immigration Rules HC 997, published by the Home Office on 1 July 2025.

The increases are designed to ensure that only those working at a competitive wage level are eligible for sponsorship, aligning with broader economic goals and immigration reforms aimed at prioritising higher skilled workers.

Here’s a breakdown of the updated salary thresholds:

In addition to these annual figures, a new hourly minimum wage floor of £17.13 per hour now applies across all bands. Employers must pay whichever is higher the annual threshold or the hourly rate based on standard working hours. However, only the first 48 working hours per week count toward meeting these requirements.

This means employers can’t rely on long working hours to artificially meet salary thresholds. It’s about ensuring fair wages and realistic workloads.

All occupation specific going rates have been recalculated using the 2024 Annual Survey of Hours and Earnings (ASHE) data. Employers should double check the current going rate for their specific Standard Occupational Classification (SOC) code to avoid mismatches or refusals.

Impact on New Skilled Worker Visa Applications

Starting from 22 July 2025, any Skilled Worker visa application submitted with a Certificate of Sponsorship (CoS) dated on or after that day must meet the new, higher salary thresholds.

Applications submitted before this date or relying on a CoS issued before 22 July will still be assessed under the previous rules.

What does this mean for employers?

For employers, this change requires immediate action:

• Review all job offers currently in progress that may result in a CoS being issued after 22 July.
• Ensure that advertised salaries, employment contracts and payroll records reflect the new thresholds.
• Update internal HR documentation such as offer letters, payslips and role descriptions to match the new compliance standards.

Failure to do so could lead to visa refusals, delays in hiring and potential issues during sponsor licence audits.

Employers who use discounted salary bands (such as the 80% new entrant rate) must also ensure that employees meet the hourly floor of £17.13, especially if they’re working part-time or compressed hours. Keep accurate records of payslips and contractual agreements to support any future compliance checks.

Additionally, staff managing the Sponsor Management System (SMS) should be trained to reference the updated tables in Appendix Skilled Occupations. Using outdated figures could lead to incorrect CoS issuance, which may result in rejected applications and reputational risk.

If you’re unsure whether your current roles meet the new salary requirements, consider conducting a quick audit of your sponsored positions and compare them against the updated ASHE data.

Impact on Skilled Worker Visa Extensions

Workers looking to extend their stay or switch employers after 22 July 2025 will also need to meet the new salary thresholds if their CoS is issued on or after that date.

There are no transitional arrangements in place, meaning extensions cannot rely on the old figures unless the CoS was issued before 22 July.

This is a key point: any extension application made after 22 July must satisfy the updated salary requirements at the time of submission.

Employer actions:

• Audit all existing sponsored employees whose leave expires after 21 July 2025.
• Confirm whether current salaries meet the new thresholds.
• If not, plan ahead for necessary pay increases well before the extension application is due.

Retrospective salary increases those made after a refusal has occurred cannot be used to overturn a decision. Any increase must be reflected in the employee’s contract and payslips before the application is submitted.

Also bear in mind the £17.13 hourly floor and the 48 hour weekly cap. Part-time workers and those on compressed schedules must still meet this requirement based on their contracted hours.

Good record keeping is essential:

• Board minutes approving salary increases
• Payroll instructions
• Contract amendments These documents are vital during compliance visits or audits.

Employers should also begin identifying employees approaching five years of continuous residence, as the same salary thresholds apply to Indefinite Leave to Remain (ILR) applications made after 22 July.

Impact on Skilled Worker Visa to ILR

From 22 July 2025, the salary test for Indefinite Leave to Remain (ILR) under the Skilled Worker route will also be aligned with the new thresholds.

Applicants must now meet one of the following salary levels:

• £41,700 (Option A)
• £33,400 (Option B)
• £31,300 (Option C)

Unlike at the entry stage, discounted rates (70%, 80%, 90%) do not apply for settlement. Only the full going rate for the relevant occupation counts towards ILR eligibility.

In addition, applicants must also meet the £17.13 hourly minimum and cannot rely on more than 48 working hours per week to meet the requirement.

There is no transitional relief for ILR applications submitted on or after 22 July 2025. The Home Office expects wages to reflect current market conditions, so applicants must already be earning the new amounts at the time of application.

What should employers do?

• Identify employees who are nearing the five year qualifying period for ILR.
• Model their projected earnings against the new thresholds and updated going rates.
• Schedule any necessary salary increases well in advance of the ILR application date.

It’s important to note that individuals in roles below RQF level 6 (degree level) can still qualify for ILR but only if they have held continuous permission under the pre 22 July 2025 rules. No new sub degree sponsorship will lead to settlement eligibility.

This change reinforces the government’s move toward a higher skilled, higher wage immigration system and may affect long-term retention strategies for certain roles.

Global Business Mobility & Scale-up Visa Updates

Salary thresholds for other work routes including Global Business Mobility (GBM) and Scale-up visas are also increasing from 22 July 2025.

These updates apply to all Certificates of Sponsorship issued on or after this date, with no transitional relief.

Updated salary thresholds:

• GBM Senior or Specialist Worker: From £48,500 to £52,500
• UK Expansion Worker: From £48,500 to £52,500
• GBM Graduate Trainee: From £25,410 to £27,300
• Scale-up Route: From £36,300 to £39,100

These increases apply equally to both initial applications and subsequent extensions or ILR applications made after 22 July.

As with the Skilled Worker visa, the £17.13 hourly minimum and the 48 hour weekly cap also apply to these routes. Employers cannot rely on excessive working hours to meet salary requirements.

Although some route specific worked examples have changed, the overall message remains clear: sponsors must budget for higher wage costs.

Employers should review current GBM and Scale-up assignments to determine whether existing salary structures meet the new thresholds. Adjustments should be made early to avoid disruptions in recruitment and compliance failures.

Need Expert Guidance?

With the new Skilled Worker visa salary rules coming into force on 22 July 2025, employers must act now to stay compliant.

Every new Certificate of Sponsorship, extension, and Indefinite Leave to Remain (ILR) application submitted from this date will be assessed under the updated thresholds. Failing to prepare could put your sponsor licence and your employees’ right to work at risk.

If you’re unsure how these changes affect your business or need support updating your processes, our immigration specialists at solicitors in Manchester are here to help. Call us today on: Manchester Office 0161 464 4140 or Book a free online consultation. 

Let us guide you through every step of the way so you can focus on running your business with confidence.