Update on UK Skilled Worker Salary Requirement: What Employers and Workers

Name: Update on UK Skilled Worker Salary Requirement: What Employers and Workers
Uploaded: 2025-03-18T16:00:00+00:00
Description: The UK government announced key updates to the Skilled Worker visa salary requirements and changes to the s

Update on UK Skilled Worker Salary Requirement: What Employers and Workers Need to Know

Charlie Skilled Worker Visas 18 March 2025 | Updated On March 21, 2025 | 0

The UK government announced key updates to the Skilled Worker visa salary requirements and changes to the sponsorship process for care workers and senior care workers on 12 March 2025. These changes will take effect on 9 April 2025 and will directly impact both employers and migrant workers.

The minimum salary threshold for Skilled Worker visa applicants will increase from £23,200 per year (£11.90 per hour) to £25,000 per year (£12.82 per hour).

This annual adjustment, based on the latest Annual Survey of Hours and Earnings (ASHE) data from the Office for National Statistics (ONS), ensures that wage requirements remain competitive and reflect current UK labor market conditions.

Impact on Employers

Higher Salary Costs
- Employers who sponsor Skilled Worker visa applicants will need to increase salaries to meet the new minimum threshold.
- This may particularly affect small businesses and sectors that rely on lower-wage skilled labor, such as hospitality, retail, and entry-level IT roles.
Increased Compliance and Sponsorship Costs
- Employers will need to review salary structures and update contracts to comply with the new rules.
- Sponsorship license holders will have to ensure that salaries meet the updated minimum to avoid compliance issues with the Home Office.
Tighter Restrictions on New Entrants
- The ‘new entrant’ salary reduction, which allows lower salaries for visa applicants in training for a professional qualification, will now be restricted to UK-recognised qualifications.
- Employers who previously used this route to hire trainees and junior professionals will have fewer options unless the qualification meets UK standards.
Potential Hiring Challenges
- Companies that rely on international recruitment—especially in social care, construction, and engineering—may find it harder to fill roles if wages do not remain competitive.
- Employers may need to reconsider recruitment strategies, offering better pay or alternative work visa routes.

Impact on Skilled Worker Visa Applicants

Higher Salary Requirement for Visa Eligibility
- Migrant workers will need to secure jobs that pay at least £25,000 per year or £12.82 per hour to qualify for a Skilled Worker visa.
- This may limit job opportunities, particularly for early-career professionals or those entering lower-paid skilled roles.
Healthcare and Education Salary Adjustments
- For workers in healthcare and education, salaries will be updated to reflect the latest national pay scales.
- This ensures that migrant workers in these sectors receive pay that aligns with industry standards.
Stricter Rules on Salary Deductions
- Employers will no longer be able to make certain deductions from an applicant’s salary, ensuring compliance with UK labor laws.
- This change prevents salary manipulation that could bring pay below the legal threshold.

Industries such as healthcare and IT, which traditionally rely on skilled migrant workers, are experiencing significant impacts due to these heightened salary thresholds.

These changes are being introduced ahead of the UK government's upcoming Immigration White Paper, which may lead to further policy reforms affecting work visas. Employers and visa applicants should plan ahead, ensuring salary structures and visa applications meet the new requirements before April 2025.

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