Skilled Worker Salary Rules in 2025: Navigating the New £41,700 Threshold, Tradeable Points, and Going Rates
TLDR:
From July 2025, Skilled Worker visa salaries rise to £41,700, with new tradeable points and role-specific going rates. Health and care roles remain exempt, while transitional protections allow pre-2024 workers to extend their contracts at £31,300 until 2030. Employers must carefully review their pay scales, compliance systems, and recruitment strategies.
INTRODUCTION
From July 22, 2025, the revised Immigration Rules introduced an increase in salary thresholds, along with an overhaul of occupation eligibility. These changes were introduced as part of the government’s strategy to tighten migration and align visa salaries with UK wage data.
This article breaks down the key updates, explaining the new rules in plain language and highlighting their implications for employers, applicants, and the UK workforce in 2025.
The New Salary Threshold – £41,700 from July 2025
The biggest headline is the salary jump. From 22 July 2025, the general minimum salary for Skilled Worker visas increased from £38,700 to £41,700.
- Hourly rate: Employers must now pay at least £17.13 per hour, based on a maximum 48-hour working week.
- Who it applies to: Most roles fall under this new general threshold unless applicants qualify for discounted categories.
- Transitional protection: Workers first sponsored before April 2024 can have their Certificate of Sponsorship assigned for less than the new minimum salary thresholds until April 4, 2030.
This change means that many roles that previously qualified will now be ineligible unless employers increase pay. Sectors such as hospitality and care have been hit hardest, with several roles being removed or elevated above typical industry salaries.
You can also read: Sponsor Licence Salary Thresholds for Skilled Workers 2025: The £38,700 Rule Explained
Tradeable Points Explained: Six Salary Options, Real Flexibility
Skilled Worker applications continue to operate on a points-based system, with a minimum requirement of 70 points to be eligible. The system is split into:
- Mandatory non-tradeable points (50):
- Offer from licensed sponsor (20)
- Job at requisite skill level (20)
- English language (10)
- Tradeable points (20): Earned through different “options” depending on salary, qualification, and occupation list status, each with its own salary threshold and percentage of the going rate.
Who gets the discount?
- PhD holders, especially in STEM, and “new entrants” (those under 26 or extending from student visas) qualify for reduced thresholds.
- The Immigration Salary List, a new feature, replaces the Shortage Occupation List, retaining concessions for critical roles.
How it works in practice: A young graduate software developer (new entrant) is offered £35,000: below the standard threshold but above both the new entrant rate (£33,400) and 70% of the role’s going rate (£33,600). The application passes.
Going Rates: Sector-by-Sector Salary Calculations
Beyond the general threshold, each occupation has its own “going rate”, based on official UK salary data for that role.
- Occupation codes: Going rates are tied to SOC 2020 job codes.
- Benchmarks: Salaries must meet both the national minimum wage and the prevailing rate for the occupation.
- Fair pay rule: Going rates prevent undercutting, ensuring overseas workers are paid comparably to UK workers in the same roles.
For some roles, the going rate is higher than the £41,700 threshold, meaning employers must pay more. Engineering, IT, and finance often fall into this category.
Importantly, salaries must be based on a 37.5-hour week. Employers cannot inflate pay by adding excessive overtime or longer hours.
Transitional Protections: The £31,300 Safety Net
Temporary measures protect existing skilled workers who were sponsored before April 2024. These workers benefit from a transitional threshold of £31,300, which will remain available for visa extensions and changes of employment until April 2030.
- Who qualifies? Those continuously employed in the same occupation, initially sponsored under the old rules.
- Extensions and employer changes: Transitional arrangements apply to those changing jobs, as long as sponsorship remains continuous, although new occupation codes may necessitate reassessment.
Both employers and workers should plan ahead to leverage transitional rates for renewals and career progression.
Looking Ahead: Future Policy Changes
The rise of the Skilled Worker salary threshold in 2025 is unlikely to be the last adjustment. The government has signaled its intention to keep immigration tightly aligned with the domestic labour market, meaning further policy changes are possible over the coming years.
One likely development is the continued use of the Immigration Salary List (ISL). This list, which replaced the Shortage Occupation List, is designed to be more responsive to changes in the UK economy. Employers should expect regular reviews and updates to ensure only genuinely high-need roles benefit from reduced thresholds.
There is also the possibility of incremental increases in salary levels. By linking thresholds to wage data, the Home Office has set a precedent for aligning immigration with rising UK pay scales. This means employers may face further cost pressures if wages in certain sectors climb.
Political factors will also shape the future. With immigration policy being a highly debated issue, upcoming elections could lead to new reforms, either tightening thresholds further or introducing more flexible pathways for critical industries. Employers and job seekers should therefore closely monitor government announcements and prepare for potential changes that may impact recruitment strategies.
Get to know about: Major Changes to UK Visa Sponsorship Rules 2026
Need Professional Assistance?
Navigating the new Skilled Worker salary rules can be complex, especially with the changing rules. At Sponsor Licence Lawyers, we specialise in helping UK employers stay compliant and plan effectively for overseas recruitment.
Whether you are applying for a sponsor licence, managing renewals, or assessing how the new rules affect your workforce, our expert team is here to support you.
Contact us today for clear, professional advice tailored to your business needs.
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Disclaimer
Our articles serve as general guidance and should not be considered legal advice. We do not accept liability for any consequences resulting from reliance on the information provided in our written materials. All readers should seek professional counsel before making any decisions or taking action based on our articles. If you require further assistance, please don’t hesitate to contact us directly for consultation with a qualified professional.
