The Skilled Worker visa is one of the primary routes for overseas workers to be employed in the UK. In this article we cover the recent changes that have been introduced to combat exploitation and prevent a situation where sponsorship costs are passed onto the workers.
What are the new requirements for ‘New Entrant’ salary reductions?
Salary reductions refer to exceptions where the minimum salary threshold can be reduced. However, certain requirements must be met. Previously, applicants could receive a salary reduction when they were training towards a recognised professional qualification; however, there was no restriction on where the qualification could be obtained. The UK government has now introduced stricter requirements, and the salary reduction only applies to UK-based professional development qualifications.
Why was it introduced?
The change was introduced to prevent a situation where salary reductions are used to lower employment costs in cases where international workers do not meet the salary requirements.
What does it mean?
It is important for employers to review whether the training in question meets the new requirement to avoid visa refusals and prevent compliance issues.
What are the changes to salary deductions and sponsorship costs?
New rules on salary deductions and sponsorship costs have been introduced. Under the updated rules, certain payments will be deducted from a Skilled worker salary when assessing whether it meets the minimum salary threshold. These include payments related to immigration costs, business costs or investments, specifically:
- Investments
- Repayments of loans
- Deductions from salary.
It means that if a sponsor loans a Skilled Worker employee the cost of sponsorship or requires visa fees to be repaid through salary deductions, these amounts will be subtracted from the employee’s salary when determining whether they meet the salary threshold.
Why was it introduced?
The goal is to ensure that the costs are not passed onto the workers. Moreover, the change was introduced to close the loophole that allowed workers to contribute to their own salary through investing into the business of their sponsor.
What does it mean?
To ensure compliance and prevent potential breaches, sponsors need to make sure that the salary meets the required threshold, with deductions. The new rules will apply to Certificates of Sponsorship assigned on or after 9 April 2025.
Conclusion
It is important to understand the changes to ensure compliance and prevent refusals. The UK government introduced other salary-related changes to the Skilled Worker route and updated sponsorship and recruitment rules for care workers. You can find information on salary changes here. If you are an employer, and you would like to know more about the changes affecting care workers, please refer to our blog on this topic.
As the immigration rules are often changing, staying informed and seeking professional advice when needed is crucial. We are happy to assist you if you have doubts about the changes.
Updated: 25 March 2025
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The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
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