Why Salary Thresholds Are Central to Work Sponsorship
For UK employers who rely on overseas talent, Skilled Worker visa salary thresholds are one of the most practically significant parts of the sponsorship system. Get them right, and your sponsored workers can come to the UK lawfully and compliantly. Get them wrong — even accidentally — and you risk a failed application, a compliance breach, or a damaged sponsor licence.
Since April 2024, the salary rules have changed significantly. Further changes from July 2025 also affected which roles can qualify for Skilled Worker sponsorship. If you have not reviewed your sponsorship arrangements recently, it is worth doing so before assigning a Certificate of Sponsorship or making a job offer to an overseas candidate.
This article covers the current rules, the exceptions that may work in your favour, and how to assess whether sponsorship is still commercially viable for your business.
If you would like expert support reviewing your situation, the work sponsorship team at Hedgley Immigration is well placed to help.
What Are the Current Salary Thresholds?
For many new Skilled Worker applications, the usual minimum salary requirement is now based on 2 figures:
- The standard salary threshold — currently £41,700 per year
- The going rate for the occupation — set for each Standard Occupational Classification (SOC) code
The worker must usually be paid whichever figure is higher. So, if the standard salary threshold is £41,700 but the going rate for the role is £45,000, the worker will usually need to be paid at least £45,000.
This is a major increase from the old £26,200 threshold that applied before April 2024, and it is also higher than the £38,700 threshold introduced in April 2024. For many businesses — particularly those in lower-margin sectors — this has changed what is realistic under the sponsorship system.
There are also important exceptions and transitional rules. Not every sponsored worker is subject to the same threshold. The correct figure depends on the worker’s immigration history, the SOC code, the date their first Certificate of Sponsorship was assigned, and whether a reduced salary rule applies.
Why the SOC Code Matters More Than Ever
The SOC code is not just an administrative detail. It determines whether the role is eligible for sponsorship and what salary level applies.
Under the current system, many new Skilled Worker roles need to be at graduate level or above. Some medium-skilled roles can still qualify, but usually only where the role is on the Immigration Salary List, on the Temporary Shortage List, or covered by a transitional provision.
This means employers need to be careful when selecting an occupation code. The code must genuinely reflect the job duties, seniority and responsibilities. Choosing a higher-paid code simply to meet the salary threshold is risky if the role does not genuinely match that code.
The Immigration Salary List: Reduced Thresholds for Certain Roles
Some roles attract a lower salary threshold because they appear on the Immigration Salary List (ISL), which replaced the old Shortage Occupation List.
For many Skilled Worker roles on the Immigration Salary List, the worker may qualify if they are paid at least £33,400 per year and the full going rate for the relevant occupation code. This means the ISL usually reduces the general salary threshold, but it does not remove the need to meet the going rate for the role.
The list is specific and can change. Some jobs are listed UK-wide, while others may only qualify in England, Scotland, Wales or Northern Ireland. You should always check the current list before relying on it.
Examples of sectors that have historically appeared on shortage lists include healthcare, engineering, construction, education and technical roles. But do not assume a role is covered just because the sector has faced shortages in the past. Eligibility depends on the exact occupation code and the current rules.
The Temporary Shortage List
The Temporary Shortage List was introduced for certain medium-skilled roles. It allows some roles below graduate level to remain eligible for Skilled Worker sponsorship for a limited period.
This can be relevant for businesses in sectors such as technical services, construction, engineering, logistics, design, administration and skilled trades. However, inclusion on the Temporary Shortage List does not automatically make a role easy to sponsor.
You still need to check:
- Whether the exact SOC code is listed
- Whether the role is eligible in the part of the UK where the worker will be based
- Whether the salary meets the listed standard rate or any applicable lower rate
- Whether the worker can bring dependants, as rules are more restricted for some below-graduate-level roles
The Temporary Shortage List is not a long-term guarantee. It is designed as an interim measure, so employers should avoid building recruitment plans around it without checking the latest position.
New Entrant Rates: Who Qualifies for a Lower Threshold?
Even outside the Immigration Salary List, there is a separate concession available for some workers classified as “new entrants”.
If a worker qualifies as a new entrant, they may be paid 70% of the standard going rate for the role, provided their salary is at least £33,400 per year.
A worker may qualify as a new entrant if they:
- Are under 26 on the date of application
- Are currently in the UK on a Student visa, or have recently held one in the last 2 years
- Are currently in the UK on a Graduate visa, or have recently held one in the last 2 years
- Are working towards a recognised professional qualification in a UK-regulated profession
- Are working towards full registration or chartered status in the job they are being sponsored for
- Are taking up certain eligible postdoctoral roles in science or higher education
The new entrant concession is time-limited. A worker’s total stay under this lower salary basis cannot usually exceed 4 years, including time already spent on a Graduate visa.
This is particularly relevant for employers recruiting recent graduates from UK universities. If a candidate completed their degree in the UK and is on the Graduate route, the new entrant rules may make sponsorship more affordable while they establish themselves in their career.
If you are recruiting someone who is currently on a student visa, it is worth planning early so you know whether the Graduate route, Skilled Worker route, or another option is more suitable.
PhD Salary Discounts
Some workers may qualify for a salary discount if they have a relevant PhD-level qualification and the role is eligible for the discount.
Where the worker has a relevant STEM PhD, they may be able to rely on 80% of the going rate, provided they are paid at least £33,400 per year.
Where the worker has a relevant non-STEM PhD, they may be able to rely on 90% of the going rate, provided they are paid at least £37,500 per year.
The qualification must be relevant to the job. If the PhD was awarded overseas, the worker may need an Ecctis check to confirm that it is equivalent to a UK doctorate. This route can be useful for specialist, research-led, technical or academic roles, but it will not apply to every job.
Sector-Specific Rules: Healthcare and Education
Two sectors deserve a specific mention because some roles operate under different salary frameworks.
For certain health and education occupations, the salary requirement may be based on national pay scales rather than the usual Skilled Worker salary threshold. This can include roles such as doctors, nurses, allied health professionals, teachers and other eligible occupations listed under the relevant rules.
In healthcare, some roles are assessed against NHS pay scales or relevant national frameworks. In education, teachers may need to meet the applicable teacher pay scale depending on the role, location and school type.
If you are an employer in either sector, make sure you are applying the correct framework to your sponsored workers. Paying below the correct banded rate can create a compliance issue, even if the salary looks reasonable in general commercial terms.
Can Smaller Businesses Still Afford to Sponsor?
This is the question many small and medium-sized employers are asking. The honest answer is: it depends on the role, the worker and the business case.
For some businesses, the salary increases have made certain roles unviable for overseas sponsorship, at least at the salary levels the business could previously sustain. For others, particularly those recruiting into higher-skilled technical, professional or managerial positions, the thresholds may already be close to market rate.
A few things are worth considering:
- Total employment cost matters — If you are weighing up the cost of sponsorship, include visa fees, the Certificate of Sponsorship fee, the Immigration Skills Charge, legal support and salary. Compare this honestly against the cost of prolonged vacancies, lost productivity or agency staff.
- The Immigration Skills Charge adds up — For new assignments, small or charitable sponsors currently pay £480 for the first 12 months and £240 for each additional 6 months. Medium and large sponsors currently pay £1,320 for the first 12 months and £660 for each additional 6 months. For a 5-year visa, that can mean £2,400 for a small or charitable sponsor, or £6,600 for a medium or large sponsor.
- The role must be genuine — In some cases, a role may be restructured, but only where the change is genuine and the worker’s duties, seniority and responsibilities genuinely align with the occupation code. Artificial restructuring can create serious sponsor compliance risk.
- Retention may justify the cost — If the worker has skills that are difficult to replace, sponsorship may still make commercial sense even where the upfront costs feel high.
If you have not yet applied for a sponsor licence and are not sure whether it makes commercial sense for your business, speaking with a regulated adviser before committing is sensible. Hedgley Immigration can help you assess the numbers clearly.
What If You Are Paying Below the Threshold?
This situation needs careful handling. Some employers discover that a sponsored worker’s pay may no longer meet the relevant threshold, especially where rules have changed since the visa was first granted or where the worker’s hours, duties or role have changed.
The correct response depends on the worker’s circumstances. Transitional provisions may apply in some cases, so you should not assume the newest threshold automatically applies to every existing worker.
However, if a sponsored worker is genuinely being paid below the salary requirement that applies to them, this can be a sponsor compliance breach. Options may include:
- Increasing the salary to meet the correct threshold
- Assigning a new Certificate of Sponsorship if the role, salary, hours or circumstances have changed
- Checking whether a transitional salary rule applies
- Seeking specialist advice on how to regularise the position
Ignoring the issue is not an option. The Home Office can conduct audits and compliance visits, and salary compliance is one of the areas sponsors are expected to monitor carefully.
Alternative Routes for Workers Who Do Not Meet the Threshold
Not every employer or worker needs to rely on the Skilled Worker route. Depending on the individual’s circumstances, there may be other options worth exploring:
- Self sponsorship — If your worker has the means and genuine business plan to set up or run a UK company, self sponsorship may be worth considering. It still involves sponsorship and compliance, but it may be suitable in some entrepreneurial situations.
- Student to Graduate to Skilled Worker — For candidates already in the UK on a student visa, the Graduate visa can give them time to gain experience and move into a role that meets the Skilled Worker threshold.
- Long residence — If a worker has been continuously and lawfully resident in the UK for 10 years across eligible visa categories, long residence may lead to settlement without needing a current employer-sponsored route.
- Ancestry visa — Some Commonwealth citizens with a UK-born grandparent may be able to live and work in the UK without employer sponsorship.
- Right of abode — Some individuals have the right of abode in the UK, meaning they can live and work here without a visa or sponsor.
Understanding which route applies can make a significant difference to what is commercially possible for your business.
The Longer-Term Picture for Sponsored Workers
One reason many employers invest in sponsorship is the retention benefit. A sponsored worker who builds their career and life in the UK may become a committed long-term employee.
Many Skilled Worker visa holders can apply for Indefinite Leave to Remain after 5 years of continuous lawful residence on the route, provided they meet the relevant eligibility requirements. Once they have settlement, they no longer need employer sponsorship to remain in the UK.
Some workers may later apply for British citizenship, depending on their circumstances.
If a sponsored worker is eligible to bring a spouse or partner to the UK, that partner may usually work, subject to the conditions of their visa. However, dependant rules have become more restricted for some roles, especially where the sponsored role is below graduate level. If employees ask about their partner’s position, they may need tailored spouse visa advice.
Frequently Asked Questions
Do all sponsored workers need to meet the £41,700 threshold?
No. The standard threshold for many new Skilled Worker applications is £41,700, but some workers may qualify under lower salary rules. This can include certain Immigration Salary List roles, new entrants, relevant PhD holders, healthcare and education roles, and some workers covered by transitional rules.
The key is to identify the correct threshold for the specific worker and role.
What is the Immigration Skills Charge and do I always have to pay it?
The Immigration Skills Charge is usually paid by the sponsor when assigning a Certificate of Sponsorship in many Skilled Worker cases. It cannot normally be passed on to the worker.
There are exemptions, including some cases where a worker is switching from a Student visa, where sponsorship is for 6 months or less, or where another specific exemption applies. You should check the current rules before assuming the charge applies.
Can I pay a sponsored worker in a currency other than pounds sterling?
The salary used to meet the Skilled Worker threshold should be stated and assessed in pounds sterling. Employers should make sure the salary, working hours and payment arrangements are clear, lawful, properly documented and consistent with the Certificate of Sponsorship.
Can I sponsor a worker for a part-time role?
Yes, but the salary rules can make part-time sponsorship difficult. The worker must still meet the applicable annual salary threshold, and the going rate must be assessed against the weekly hours stated on the Certificate of Sponsorship.
In many cases, part-time roles do not generate enough annual salary to meet the minimum requirement, which makes full-time sponsorship more common.
What happens if I want to reduce a sponsored worker’s hours or salary?
Any reduction in a sponsored worker’s salary or hours should be reviewed before the change is made. If the change affects the worker’s salary threshold, role, SOC code or visa conditions, it may need to be reported to the Home Office through the Sponsorship Management System.
If the reduction takes the worker below the applicable threshold, you should seek advice immediately.
How often are the thresholds reviewed?
Salary thresholds, going rates and eligible occupation lists can change. The April 2024 and July 2025 changes show how quickly the sponsorship landscape can shift.
Employers should build regular salary and SOC code reviews into their HR and compliance processes, especially before visa extensions, role changes or new recruitment campaigns.
Ready to Review Your Sponsorship Arrangements?
Whether you are considering sponsorship for the first time or you need to review your existing arrangements in light of recent rule changes, getting clear advice is the right first move.
At Hedgley Immigration, Sean Hedgley’s background as a former UKVI caseworker means the team understands how compliance obligations are assessed and how to structure arrangements that work for both the business and the sponsored worker.
Contact Hedgley Immigration today to discuss your sponsorship needs and make sure your business is on solid ground.