Impact of 2025 Salary Threshold Changes on Sponsorship

"Wooden letter blocks spelling the word salary on a red background – representing 2025 salary threshold changes for sponsored workers in the UK."

Switching on new sponsorship strategies has never felt more pressing for UK employers. With the sweeping immigration reforms enacted in mid-2025, the rules governing salary thresholds for sponsored workers have been fundamentally reshaped. These changes demand swift understanding and proactive adaptation from sponsors, especially those navigating the Skilled Worker route.

For many employers, it’s not just a question of compliance; it’s about planning for the future of their workforce. The talent that organisations depend upon, whether in healthcare, technology, finance, or hospitality, can only thrive when employers align their hiring practices with immigration requirements. The salary rules for sponsored workers, now more than ever, sit at the heart of this balance between attracting the right candidates and securing the necessary approvals.

Yet, the shift is not all a challenge. For some, it’s also a chance to rethink hiring priorities, strengthen workforce planning, and reassess how best to attract global talent in a changing economic and policy climate. Employers who approach this moment with clarity and flexibility are better positioned to not just adapt, but also to flourish under the new sponsorship framework.

What’s Changed in 2025?

From 22 July 2025, only jobs at graduate-level (RQF 6 or above) are eligible for sponsorship via the Skilled Worker route, unless they appear on the Immigration Salary List or the new Temporary Shortage List, or fall under a transitional provision.

What this means: Many roles that were permissible under prior rules, even that just below graduate level, now require elevated skill or inclusion on a specified list to continue attracting international talent.

Introduction of a Temporary Shortage List

The Immigration Salary List is being phased out, making way for a new approach: a time-limited, conditional Temporary Shortage List, set to remain in place until the end of 2026. This shift signals a more transitional, carefully managed model, one that gives policymakers room to respond to labour market pressures while also ensuring the sponsorship system remains adaptable.

There is, however, an important distinction when it comes to adult social care, where exemptions continue to apply, recognising the sector’s unique and ongoing staffing needs. For most other roles placed on the Temporary Shortage List, the conditions are deliberately more restrictive. Workers entering through this route are not permitted to bring dependants with them, and crucially, they do not benefit from salary or fee discounts that might otherwise soften the cost of sponsorship.

For employers, this means that while the list provides short-term access to overseas talent, it also comes with tighter boundaries. Recruitment strategies in sectors relying on the Temporary Shortage List will need to account for these restrictions, balancing immediate staffing relief with the longer-term challenge of retention and workforce stability.

Occupation, Sector & Applicant-Specific Impacts

1. Graduate-Level (RQF 6+) Roles

For roles at or above RQF 6, employers must now meet the elevated salary thresholds—either the updated general level or the occupation-specific rate, whichever is higher.

Example: A marketing director now requires a minimum salary of approximately £87,300 (standard), or the lower rate of £60,000, depending on the applicant’s status.

2. New Entrants or Selected Categories

Discounts are still available—for example, new entrants may qualify for lower thresholds (e.g., 70% of the going rate), depending on occupation code.

Example: A recent graduate under 26 in a senior public service role might qualify with a minimum of £61,600, compared to the full £88,100.

Occupations on Interim Lists

Roles at RQF levels 3-5 (below graduate level) may still be sponsored only if they appear on the Temporary Shortage List or the Extended Immigration Salary List, or meet transitional criteria as outlined by the UK government website.

However, such roles now cannot offer dependent access and must meet full salary thresholds, without discounts.

Examples: Offers That May Now Fail

  1. Software Developer (RQF 3–5) previously eligible: No longer qualifies unless on the Temporary Shortage List.
  2. Laboratory Technician requiring 3 years’ experience: Still eligible if listed—but now must meet updated full salary thresholds.
  3. Care Worker: Overseas entry is closed. In-country switching is only permitted until 22 July 2028; thereafter, the route is closed.

Strategies for Competitive Sponsorship

1. Audit and Reassess Job Designs

  • Review job descriptions, ensuring roles meet RQF 6+ criteria.
  • Reclassify or elevate roles that fall just below graduate level to align with the revised skill threshold.

2. Re-evaluate Salary Bands

  • For eligible new entrants, consider offering the applicable discounted rates, where permitted.

3. Leverage Shortage Lists with Caution

  • If hiring in roles on the Temporary Shortage List, act swiftly; these are temporary and conditional and set to expire by the end of 2026.
  • Build domestic training pipelines to reduce long-term reliance on sponsorship, aligning with the government’s industrial strategy goals.

4. Utilise Transitional Provisions

  • Employees already on the Skilled Worker route in now-ineligible roles may continue under transitional rules, but this window is limited.
  • Employers must monitor these provisions closely to avoid compliance issues when they expire.

5. Ensure Sponsor Licence Compliance

  • Maintain updated internal HR systems, assignment records, and CoS procedures under the “Sponsor a Skilled Worker” guidance.
  • Be mindful that incorrect or underpaid CoS may lead to refusals or audits. Salaries cannot be undercut to gain competitiveness.

Broader Strategic Considerations

  • Impact on profitability: Higher salary commitments will influence job rate planning.
  • Budgeting for dependants: Roles at RQF 6+ still permit dependants; roles via shortage lists do not—affecting the attractiveness to candidates.
  • Employer branding: Publicly affirming commitment to legal, fair sponsorship signals credibility to both domestic and international talent.

Take away!

The 2025 salary threshold reforms mark far more than just an update in numbers—they represent a turning point in the UK’s sponsorship journey. They raise the bar for skills and pay, narrowing the gateway for lower-level roles while spotlighting the importance of long-term workforce planning. For employers, the message is clear: sponsorship is no longer just about filling immediate gaps; it’s about strategically shaping the future of your teams.

To thrive in this environment, sponsors will need to be proactive. That may mean reviewing job roles in detail, reassessing pay frameworks, or mapping out how to make use of interim measures and transitional routes. At the same time, the smartest organisations will also be looking inwards—investing in domestic training, nurturing homegrown talent, and ensuring that compliance becomes second nature rather than a last-minute scramble.

The real mark of success will lie in how employers balance compliance with competitiveness. Those who adapt with agility, clarity, and foresight will not only continue to attract global talent but also create workplaces that feel secure, sustainable, and ready for growth.

And if you’re navigating these changes and looking for reliable guidance, remember to stay connected with Sponsor Licence Hub—your trusted companion in making sense of sponsorship, strategy, and success.

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