UK employers sponsoring overseas talent under the Skilled Worker visa route face sweeping changes from 22 July 2025, as the Home Office introduces significantly higher salary thresholds. The changes impact not only new hires but also visa extensions and settlement (ILR) applications, requiring immediate action from businesses holding sponsor licences. New Salary Thresholds: What’s Changing
Under the new rules, the minimum salary for most standard Skilled Worker roles rises from £38,700 to £41,700, with similar increases across all discount bands. Employers must also meet a new minimum hourly rate of £17.13, and only the first 48 working hours per week can count toward salary calculations.
Salary Band Use Case Old Threshold New Threshold (22 July 2025)
Option A Standard Skilled Workers £38,700 £41,700
Option B STEM PhD/Salary List Roles £34,830 £37,500
Option C/D/E Most New Entrants £30,960 £33,400
Option F New Entrant Floor £29,000 £31,300
Option G 70% Discount Rate (rare) £26,100 £28,200
Failure to meet the appropriate salary—even by a small margin—will result in automatic visa refusal, regardless of whether all other criteria are met.
No Transitional Period
Crucially, there is no grace period or transitional relief. Any Certificate of Sponsorship (CoS) dated 22 July 2025 or later must fully comply with the new thresholds. This applies to:
New visa applications
Skilled Worker visa extensions
Employer or role changes
Indefinite Leave to Remain (ILR) applications
New ILR Salary Rules
For Skilled Workers applying for settlement (ILR), discounted rates no longer apply. From 22 July onward, only the full standard thresholds will be accepted, with a baseline of £41,700. The £17.13 hourly rate and 48-hour working week cap also apply at this stage.
Applicants in jobs that no longer meet skill or salary criteria—even those employed for years—may be ineligible for ILR unless they were sponsored prior to 22 July 2025.
Global Business Mobility & Scale-Up Routes Also Affected
Employers using other sponsorship routes must also adapt. For the Global Business Mobility (GBM) visa:
Senior or Specialist Worker: £52,500 (up from £48,500)
UK Expansion Worker: £52,500
Graduate Trainee: £27,300 (up from £25,410)
For the Scale-Up visa, the minimum salary rises to £39,100, up from £36,300. These apply to all new CoS issued from 22 July, including extension and ILR applications.
Compliance Risks for Employers
Failure to comply with the new salary rules can have serious consequences:
Visa refusals
Recruitment delays
Damage to sponsor licence reputation
Potential licence suspension or downgrading Sponsors must ensure that salaries are contractually adjusted and in force before a new CoS is assigned. Backdated pay rises or promises of future increases will not be accepted by the Home Office.
📋 Employer Action Checklist
✅ Review all upcoming Skilled Worker visa renewals and new hires
✅ Ensure salaries meet both annual and hourly minimums
✅ Update internal recruitment and HR systems
✅ Train managers and payroll teams on new rules
✅ Keep accurate documentation and update Sponsor Management System (SMS)
Need Expert Help?
With complex salary bands and compliance pressure rising, employers are advised to consult immigration experts. Legal teams can assist with:
Salary benchmarking
Role reclassification
Sponsor license strategy
CoS assignment reviews
Audit preparation
The 22 July 2025 salary threshold overhaul marks the most significant Skilled Worker visa change since the post-Brexit system was introduced. Proactive preparation is essential.
For personalised advice, consult a UK immigration law expert or your existing legal representative.
Written by: LIIE IMMIGRATION
