Sponsor Licence Salary Thresholds for Skilled Workers 2025: The £38,700 Rule Explained
The Skilled Worker visa and other sponsored routes have always depended on salary thresholds to determine eligibility. In 2025, the Home Office implemented a significant update to the general threshold for new workers, raising it to £38,700. This new rule has major implications for UK employers, HR departments, and anyone managing a sponsor licence.
This article explains what the £38,700 rule means, who it applies to, which roles are exempt, and how organisations can stay compliant when assigning a Certificate of Sponsorship (CoS).
Key Takeaways
- The general Skilled Worker visa threshold has risen to £38,700 in 2025.
- Exceptions exist for healthcare, shortage occupations, PhD-level, and new entrant roles.
- Employers must ensure accurate salary reporting and compliance with Home Office rules.
- Incorrect salary data can lead to visa refusals or sponsor licence revocation.
- Regular HR audits and professional legal support are essential for maintaining compliance.
What is the £38,700 Rule?
Under the updated immigration salary thresholds, most new Skilled Worker visa applicants must now be paid at least £38,700 per year or the “going rate” for their job, whichever is higher.
This figure represents the general salary threshold introduced by the UK Visas and Immigration (UKVI) as part of wider reforms aimed at reducing reliance on migrant labour and ensuring that employers pay fair market rates.
To sponsor a worker, your job offer must meet:
- The minimum salary of £38,700 per year, and
- The occupation-specific going rate, listed under the Standard Occupational Classification (SOC) codes.
This ensures sponsored roles are genuinely skilled and fairly paid.
How the Salary Threshold Works
The salary threshold applies to gross annual earnings, meaning the total amount before tax and deductions. It includes a guaranteed base salary and does not include:
- Bonuses
- Overtime
- Commission-based pay
Employers must confirm salary details when assigning a Certificate of Sponsorship, ensuring figures are consistent with employment contracts and HR records.
Failure to pay the correct salary could lead to a visa refusal or even licence revocation if non-compliance is discovered during a Home Office audit.
When the £38,700 Rule Applies
The general threshold applies to most skilled worker roles under Appendix Skilled Worker. It covers occupations that do not fall under any exemption or discounted category.
Employers sponsoring migrants for roles in technology, engineering, architecture, business management, and finance will typically need to meet or exceed this new minimum.
For new sponsor licence applicants, it is essential to review salary scales across your workforce before applying, as any job advertised below the new threshold will not qualify for sponsorship.
Exceptions and Lower Salary Options
Not all roles must meet the full £38,700 threshold. The Home Office recognises certain exceptions to support essential industries and early-career professionals.
1. Health and Care Worker Visa
Roles in the NHS, adult social care, and wider healthcare sector are exempt from the general threshold. Instead, they follow national pay scales, often significantly lower than £38,700, as long as the salary meets the relevant occupation code requirement.
2. New Entrants
Applicants classified as new entrants (such as those under 26 or switching from a Student visa) benefit from a reduced rate of 70% of the general threshold. This means eligible candidates can qualify with lower salaries, depending on the role.
3. Shortage Occupation Roles
Certain job titles listed under the Shortage Occupation List or Immigration Salary List have lower salary thresholds, reflecting industry shortages.
4. PhD-Level and Research Roles
Positions requiring a relevant PhD can also qualify for a salary discount of up to 20%, subject to verification under the relevant SOC code.
Impact on Employers and Sponsor Licence Holders
The new salary thresholds place greater responsibility on employers holding a sponsor licence.
Budget and Recruitment Implications
For businesses heavily reliant on overseas recruitment, especially in medium-skilled sectors, the increased threshold may affect hiring budgets. Employers may need to restructure pay scales to stay compliant or target roles that still qualify under exceptions.
HR and Payroll Compliance
Your HR department must ensure salaries listed on Certificates of Sponsorship exactly match employment contracts and payroll systems. Discrepancies can trigger compliance action from the Home Office.
Risk of Licence Revocation
Failure to maintain salary standards or submitting incorrect CoS information can result in licence downgrading, suspension, or revocation, preventing further sponsorship activity.
Get to know about: Sponsor Licence FAQs for Employers: Clear Answers from Specialist Lawyers
How to Ensure Compliance with the 2025 Salary Rules
Conduct Internal Salary Reviews
Audit all roles you intend to sponsor to ensure they meet the new salary threshold or applicable exemptions.
Verify Occupation Codes
Each job must align with the correct Standard Occupational Classification (SOC) code, which determines both skill level and salary requirement.
Keep Payroll Records Updated
Ensure your HR and payroll systems accurately reflect salary data provided to UKVI. Inconsistencies can trigger compliance investigations.
Use Legal Advice for Complex Roles
If unsure whether a role qualifies for a discount or exemption, seek guidance from a business immigration solicitor. They can verify SOC codes, eligibility, and documentation before submission.
What to Do If a Salary Falls Short
If your proposed salary does not meet the required threshold:
- Check if the role qualifies for an exemption (healthcare, new entrant, PhD-level).
- Adjust the salary offer to meet the new benchmark.
- Seek professional legal advice before assigning a CoS to avoid future compliance issues.
Employers should never submit a CoS unless the role fully meets the salary and skill requirements.
Need Professional Guidance?
Salary thresholds under UK immigration law are complex, and one mistake can affect your ability to sponsor workers. At Sponsor Licence Lawyers, our expert immigration lawyers assist employers in reviewing job offers, calculating qualifying salaries, and ensuring compliance with Home Office and UKVI regulations.
Whether you’re renewing a sponsor licence, hiring under the Skilled Worker route, or navigating the Health and Care Worker visa, our team ensures your business meets every requirement confidently. Contact us today for tailored advice on sponsor licence compliance and the 2025 salary threshold updates.
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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.
