A series of significant changes to the Skilled Worker visa has taken effect since mid-2025, with further reforms following in 2026. Two changes in particular demand immediate attention from employers and sponsored workers alike: a new salary compliance framework that assesses pay across individual pay periods (not just annual figures — effective 8 April 2026), and a proposal to extend the settlement qualifying period from five years to ten (not yet in force). Together, they reshape the economics of sponsorship and the long-term planning horizon for anyone on a work visa.
The New Salary Threshold: £41,700
From 22 July 2025, the general salary threshold for Skilled Worker visas rose from £38,700 to £41,700 per year — or 100% of the going rate for the relevant Standard Occupational Classification (SOC) code, whichever is higher. A new minimum hourly rate of £17.13 (based on a 48-hour reference week) also applies for most roles. The threshold change was introduced by the Statement of Changes to the Immigration Rules published on 1 July 2025 and took effect on 22 July 2025.
This increase affects:
- All new Skilled Worker applications submitted on or after 22 July 2025
- In-country switches from other visa categories
- Renewals where the Certificate of Sponsorship (CoS) is assigned on or after the effective date
Workers on Certificates of Sponsorship assigned before 22 July 2025 are assessed under the previous rules until their next renewal.
The Pay-Period Compliance Shift (From 8 April 2026)
This is the change most likely to catch sponsors off-guard. Previously, compliance could be demonstrated by showing the correct headline annual salary. The 8 April 2026 framework — introduced by the March 2026 Statement of Changes (HC 1691) — requires sponsors to demonstrate the threshold is met within each pay period, not just on paper annually.
The specific tests:
| Pay frequency | Compliance test |
|---|---|
| Monthly or less frequent | Salary over any three-month window ≥ ¼ of the annual threshold |
| More frequent than monthly | Any 12-week salary ≥ 12/52 of the annual threshold |
| Variable hours | 17-week reference period ≥ 17/52 of the annual threshold |
What This Means for Employers
Sponsors must:
- Audit payroll records now. Identify sponsored workers whose pay varies — bonuses, commission, reduced-hours arrangements, or unpaid leave — and verify each pay period meets the new test.
- Align CoS figures with actual pay cycles. The salary declared on the Certificate of Sponsorship must reflect the pay period structure in the employment contract.
- Prepare for Home Office compliance visits. Inspectors now cross-reference HMRC payroll data against pay-period windows, not just the annual contract figure. Systems must be audit-ready at all times.
- Review variable compensation structures. Commission-heavy or seasonal roles may require restructuring — for example, introducing guaranteed base pay floors — to ensure compliance in every pay cycle.
Skill Level Requirement: RQF Level 6 (From 22 July 2025)
The eligible occupation list has been tightened: all qualifying roles must now correspond to at least RQF Level 6 (equivalent to a UK bachelor’s degree). This change, also effective from 22 July 2025, removed approximately 180 occupations from the Skilled Worker route that previously qualified at RQF Level 3–5. Workers already sponsored in sub-RQF 6 roles before that date retain the ability to extend or change employers under transitional arrangements.
Employers filling roles below graduate level should assess whether alternative routes — such as the Temporary Worker categories or the new UK Expansion Worker route — remain available, or whether restructuring the role upward is viable.
English Language: Now B2
From 8 January 2026, applicants on most work visa routes — including Skilled Worker — must demonstrate English at CEFR B2 (upper-intermediate level), up from B1 (intermediate). For settlement applications, B2 will be required from March 2027.
Accepted evidence includes:
- Approved Secure English Language Tests (SELTs) such as IELTS Life Skills or Trinity SELT
- A degree taught in English (UK or approved overseas institution)
- Nationality exemptions for countries where English is the only official language
Applicants currently preparing for switch or renewal applications should factor in the higher test band when booking language assessments.
The Proposed 10-Year Path to Settlement
Important: this change has not yet come into force. The UK Government’s May 2025 white paper, Restoring Control over the Immigration System, proposed extending the standard qualifying period for Indefinite Leave to Remain (ILR) from five years to ten years for most points-based system routes, including Skilled Worker and Graduate visa holders. A public consultation — Fairer Pathway to Settlement — ran from 20 November 2025 to 12 February 2026 and received over 200,000 responses. As of mid-2026, the Home Office is still reviewing those responses; no new Immigration Rules have been laid before Parliament and the five-year ILR route remains fully in force.
The white paper also proposed a parallel “Earned Settlement” track: applicants who demonstrate high earnings (threshold subject to MAC review) or significant economic contribution may qualify before the ten-year mark. However, the criteria are yet to be legislated, and implementation is currently targeted for autumn 2026 — though no binding date has been set.
Routes that the government has indicated would retain the five-year pathway under the proposal:
- Family visas sponsored by British citizens or settled persons
- BN(O) visa holders
- Refugees granted Humanitarian Protection
Planning Implications
The five-year ILR route remains available as of today. If you are currently on year three or four of a Skilled Worker visa, the change has not yet happened — but it is prudent to track the progress of the legislation and speak to an immigration adviser, particularly as transitional provisions for people already in the UK may be announced alongside any formal rule change.
Other Key Changes
Immigration Skills Charge: 32% Increase
From 16 December 2025, the Immigration Skills Charge paid by sponsors increased by approximately 32%:
- Small sponsors and charities: £480 per year per sponsored worker (up from £364)
- Medium and large sponsors: £1,320 per year per sponsored worker (up from £1,000)
The charge applies per sponsored worker per year of sponsorship (pro-rated for each 6-month period). Sponsoring a Skilled Worker for five years now costs a medium/large employer £6,600 in ISC alone, up from £5,000. Sponsors with large cohorts of overseas workers should re-model workforce budgets accordingly.
Graduate Visa: Shortened Duration (from January 2027)
From January 2027, the Graduate visa — which allows international students to remain in the UK after completing a UK degree — will reduce from two years to 18 months for bachelor’s and master’s graduates. PhD graduates retain three years. Applicants completing courses in the 2025–26 academic year should factor this into post-study planning.
Overseas Care Worker Recruitment: Suspended
The government has closed overseas recruitment for the Health and Care Worker visa category in social care. Existing sponsored care workers are unaffected, but new international recruitment for registered care roles has effectively ceased while the sector adjusts to the tighter rules.
Action Checklist for Sponsors
- Run a full payroll audit for all sponsored workers, identifying any pay periods that may not meet the new per-period compliance test
- Review your sponsored workforce’s SOC codes against the revised eligible occupation list
- Update internal HR and payroll systems to generate the pay-period compliance evidence Home Office inspections will require
- Brief your HR team on the B2 English language requirement for any new CoS assignments
- Model the financial impact of the 32% Skills Charge increase across your sponsored headcount
- Monitor progress of the proposed 10-year ILR rule change; brief affected employees on the current five-year status and the government’s planned reforms once legislation is confirmed
For personalised guidance on how these changes affect your specific case — whether you are a sponsor or a visa holder — ask Immigranta — our AI assistant answers immigration questions with direct references to the latest Home Office guidance.