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🇬🇧 Skilled-Worker Salary Hike: How the New £25,000 Threshold Changes UK Hiring in 2025

The UK government has raised the absolute minimum salary floor for Skilled Worker visas from £23,200 to £25,000 ( £12.82 per hour) effective 9 April 2025. While the headline general threshold remains £38,700, this lower £25k figure now governs extensions, in-country switches, and some shortage-code roles. Here’s what every employer and visa applicant needs to know.

   
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Why Did the Floor Rise to £25k?

  • Curb underpaid sponsorships and protect resident wages.
  • Align entry-level salaries with the National Living Wage trajectory.
  • Simplify the gap between the old £23.2k floor and the new £38.7k general benchmark.

Policy source: https://www.getborderless.co.uk/blog/skilled-worker-visa-salary-increase-april-2025

Who Is Affected?

ScenarioMust Meet £25k?
New Skilled Worker applicants applying outside the UK after 9 Apr 2025✔
In-country switches (e.g., Graduate → Skilled Worker)✔
Visa extensions or employer changes filed on or after 9 Apr 2025✔
Skilled Worker holders extending before 9 Apr 2025❌ (old rules)

Additional NHS and Immigration Salary List discounts still apply, but the absolute floor is now £25,000. NHS Employers

Key Numbers for 2025

Salary RuleFigureApplies To
General Skilled Worker threshold£38,700Most roles (Code-specific higher if “going rate” is greater) Davidson Morris
Minimum floor£25,000All Skilled Worker applications & renewals after 9 Apr 2025 People Management
Immigration Salary List discount80 % of going-rate or £30,960 (whichever is higher)Shortage occupations

How This Impacts Employers

  1. Budget adjustments – entry-level hires who previously qualified at £24k now need at least £25k or a different visa (e.g., Graduate).
  2. Speed-up hiring – issue Certificates of Sponsorship (CoS) before 9 Apr 2025 if current salaries fall below £25k.
  3. Review NHS pay scales & regional rates – Band 3–4 roles outside London may miss the new floor; trusts must uplift offers.
  4. Audit extension timelines – renewals after April will trigger the higher minimum; adjust contracts early.

Tips for Applicants

  • Negotiate: ensure your contract specifies £25,000+ or the relevant going-rate.
  • Check your SOC code matches the job duties; miscoding can sink an application.
  • Use the IELTS/NARIC fast lane to prove English and avoid delays.
  • Monitor processing times: www.gov.uk/visa-processing-times-applications-outside-the-uk

Recruitment Strategies for 2025

  1. Leverage the Immigration Salary List to access a 20 % discount (but still above £25k).
  2. Consider Graduate-to-Skilled Worker pipelines for roles paying £25–£30k.
  3. Offer remote-hybrid contracts with London-weighting to hit salary rules.
  4. Provide clear progression to £38.7k+ within two years to aid retention and future extensions.

Closure

The jump to a £25,000 floor won’t shut the door on global talent, but it does raise the bar for entry-level sponsorships. Employers must budget realistically, and candidates must secure offers that meet or exceed the new benchmark.

Stay on top of the latest Home Office updates and adjust recruitment plans now—April 2025 will arrive faster than you think.

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