On the 22nd July 2025, the Home Office implemented sweeping updates to the Skilled Worker route, raising salary requirements across the board—and reshaping how employers with international hires must navigate sponsorship. This article examines the salary threshold escalation, the expanded Immigration Salary List (ISL), the new Temporary Shortage List (TSL), and the growing cost burden on employers. These changes present both challenge and opportunity for businesses committed to recruiting migrant workers.
What changes have been made to general salary thresholds?
The general salary threshold for Skilled Worker applicants has been increased from £38,700 to £41,700 – this applies to those who entered the route after 4th April 2024. Whereas the threshold for those who entered the Skilled Worker route before this date has been increased from £29,000 to £31,300. Meanwhile the threshold for applicants with PhDs has increased from £34,830 to £37,500, and for new-entrants it has increased from £30,960 to £33,400.
It is important to note, that there is no transitional protection offered for the salary thresholds. Any new application submitted on or after 22nd July must meet the updated rates, regardless of past sponsorship status. Whilst no formal transitional arrangements have been introduced, the reduced salary thresholds for Skilled Workers who entered the route prior to 4th April 2024 operates as a de facto transition period. As this threshold, which is significantly lower, will allow employers to continue to sponsor migrant workers employed before this date without the abrupt jump to £41,700.
The ISL and TSL: a reprieve, but not without conditions
In order to cushion the loss of lower skilled routes (RQF levels 3-5), the government expanded the Immigration Salary List (ISL) and introduced the Temporary Shortage List (TSL).
Both lists contain job roles which are currently in shortage. The ISL will allow sponsorship of selected RQF 3 5 roles at a discounted salary threshold. The new TSL will includes roles considered pivotal under the government’s industrial strategy – e.g. certain technicians.
It should be noted however that both lists are temporary and are due to expire in December 2026, or sooner. Furthermore, workers sponsored in ISL or TSL jobs at RQF 3 5 after 22nd July cannot bring dependants. Although, this will not apply to workers who were already in the skilled worker route and able to bring dependants before this change.
Whilst employers gain short term flexibility with roles on the ISL and TSL, the caveat is that these lists are temporary and contingent. Looking beyond 2026, sponsors must plan for phasing out reliance on lower skill overseas hires—even if the Migration Advisory Committee reviews maintain certain roles beyond the cut off.
The Impact on Employers: costs, constraints and complexity
Many UK businesses must now meet salary floors higher than before. The Home Office have also recently placed restrictions on sponsors recouping or attempting to recoup costs from sponsored workers. Employers typically cannot pass on sponsor licence fees, administrative fees, Certificate of Sponsorship fees and Immigration Skills Charge fees to applicants. These restrictions paired with higher salary requirements places significant strain on employers. Particularly small businesses, which often operate with tighter margins and more limited financial reserves, leaving them less able to absorb these costs.
Employers who act now—with careful planning, budgeting and expert immigration law advice -will be best placed to manage the new landscape and continue to sponsor migrant workers.
