Synopsis: Starting 22 July 2025, the UK raises the ILR salary threshold for Skilled Worker visa holders to £41,700 per year or the occupational going rate, whichever is higher. This post examines exceptions for health and education workers, transitional disparities, and strategic steps to secure settlement under the new immigration rules.
New ILR Salary Threshold from July 2025: What It Means for Skilled Workers
As the UK tightens immigration policy, skilled worker visa holders now face a higher hurdle to secure settlement. From 22 July 2025, applicants for Indefinite Leave to Remain (ILR) must meet a revised minimum salary threshold of £41,700 per year, or the standard occupational going rate, whichever is higher. These changes, detailed in the latest Statement of Changes to the Immigration Rules, have far-reaching implications for future visa renewals and settlement pathways.
Topics Covered:
- New ILR Salary Threshold from July 2025
- Whichever Is Higher: Going Rate vs. General Threshold
- Key Exceptions for Health and Education Workers
- Transitional Disparities Before and After April 4, 2024
- Strategic Steps for Current and Future Applicants
New ILR Salary Threshold from July 2025
From July 22, 2025, the general salary requirement for skilled workers applying for ILR rises from £38,700 to £41,700 per year. This shift reflects a broader government initiative to align immigration with economic contribution benchmarks and reduce net migration figures.
Previously, a minimum salary of £38,700 would suffice, but now, applicants must earn at least £41,700, unless their specific occupation’s going rate is higher. If you’re on a Skilled Worker or Health and Care Worker visa, failing to meet this threshold could block your settlement route.
According to the UK Home Office, this threshold is subject to annual review and may rise further, so applicants should double-check applicable rates at the time of filing.
Whichever Is Higher: Going Rate vs. General Threshold
Understanding “Whichever Is Higher”
When applying for ILR, the salary you earn must meet the greater of:
- £41,700 per year, or
- The going rate for your specific occupation code.
This means if the going rate for your role is £42,000, that is your benchmark—even though it’s above the general threshold. Conversely, if the going rate is £39,000, you still must meet the £41,700 minimum.
Examples
|
Occupation |
Going Rate (£) |
Required ILR Salary |
|
Software Developer |
£42,000 |
£42,000 |
|
Civil Engineer |
£39,000 |
£41,700 |
To find your role’s going rate, refer to the official going rates table.
Key Exceptions for Health and Education Workers
Not all visa holders are subject to the same salary rules. Healthcare and education workers often follow national pay scales, such as the NHS Band system, and different salary benchmarks apply.
Health and Care Worker Visa
Depending on your role and job code, you must meet whichever is higher among:
- £29,000 per year
- £23,200 per year (if on the Immigration Salary List)
- The lower going rate for your occupation
These lower salary thresholds aim to reflect the structured pay bands within the NHS and the difficulty in attracting talent to shortage roles.
The Migration Advisory Committee (MAC) continues to advise on which roles remain on the Immigration Salary List.
Education Roles
For education professionals, especially teachers, the required salary is usually derived from:
- National pay scales
- Regional pay variations (inner London vs outside London)
Applicants must consult the most recent Department for Education pay guidance for accurate benchmarking.
Transitional Disparities Before and After April 4, 2024
Why the April 4, 2024, Cut-off Matters
The government has introduced a dual treatment model depending on when your Certificate of Sponsorship (CoS) was issued:
- If your first CoS was issued before April 4, 2024, and you have held continuous Skilled Worker status, you may be subject to the older, lower thresholds.
- If you received your CoS on or after April 4, 2024, you are required to meet the new ILR salary threshold of £41,700.
This creates a unique grey area for many applicants and highlights the need for individuals to review their visa history and occupation code status.
The Home Office has confirmed there will be no transitional period for those applying after July 22, 2025, making timely planning critical.
Strategic Steps for Current and Future Applicants
1. Know Your Occupation Code
Each job role corresponds to a specific SOC (Standard Occupational Classification) Code. Understanding your assigned code is essential to identify the applicable salary rate.
- Refer to the Skilled Worker Eligible Occupations list for the right code.
2. Calculate Based on “Whichever Is Higher”
Cross-compare your annual salary against both the general threshold and your job’s going rate. Use the higher of the two for ILR eligibility.
3. Gather Strong Evidence
ILR applications must now be backed by:
- At least 12 months of consistent pay slips
- Corresponding bank statements
- Employer letters or contracts confirming salary
Any last-minute hike in salary to meet the requirement may be flagged as suspicious by UKVI.
4. Anticipate Future Increases
Given the trajectory—from £26,200, to £38,700, and now £41,700—future hikes are likely. Applicants several years away from applying must plan with potential future increases in mind.
5. Beware of Delayed ILR Pathways
There is growing speculation that these changes could be part of a broader push to stretch ILR eligibility from 5 years to 10 years. This would significantly delay settlement and reduce the number of new permanent residents.
Even the BBC has reported growing concerns about these policy shifts and their impact on millions of foreign workers in the UK.
Is This a Way to Control Net Migration?
Critics argue that this salary increase is a tactic to reduce settlement numbers, especially for roles that fall just below the threshold. With rising political pressure to cap migration, these rule changes appear to be strategic filters to curb ILR approvals.
Key concerns include:
- Exclusion of low-to-middle income workers from permanent settlement
- Lack of transitional support for those near the threshold
- Limited clarity on who qualifies for the 5-year vs 10-year ILR routes
Final Thoughts: Plan Proactively
The rise in ILR salary thresholds isn’t just a policy update—it’s a potential turning point in the UK immigration landscape. While some may meet the £41,700 benchmark comfortably, thousands of skilled workers are now at risk of delay or even disqualification from settlement.
Take Action Now:
- Check your salary against your job’s going rate
- Secure documentation well in advance
- Consider negotiating salary adjustments early
- Stay updated via UK Visas and Immigration and reliable legal resources
Remember, policies can and often do change without much notice. Strategic preparation is no longer optional—it’s essential.
Frequently Asked Questions (FAQs)
What is the new salary requirement for ILR in the UK from July 2025?
From 22 July 2025, the salary requirement for Indefinite Leave to Remain (ILR) under the Skilled Worker route increases to £41,700 per year or the standard occupational going rate, whichever is higher.
Does the £41,700 ILR salary requirement apply to all Skilled Worker visa holders?
Yes, the new threshold applies to most Skilled Worker visa holders applying for ILR after July 22, 2025. However, exceptions exist for healthcare, education, and those on the Immigration Salary List.
How do I check the going rate for my job when applying for ILR?
You can find the going rate for your occupation on the official UK government’s Skilled Worker occupation list. Your required salary is whichever is higher—going rate or £41,700.
What documents are needed to prove my salary for ILR application?
You must provide payslips, bank statements, and an employer letter showing that you’ve consistently earned the required salary for a sustained period before applying for ILR.
Are healthcare and education workers also subject to the £41,700 ILR threshold?
Not necessarily. Workers in NHS and teaching roles may follow national pay scales, which have different salary thresholds. Always verify with the latest Home Office guidance for your sector.
Does the new salary threshold apply to visa extensions or only ILR?
Yes, the updated salary threshold impacts ILR applications, visa extensions, and new visa applications starting July 22, 2025. There is no transitional period, so it applies immediately after the change.
Will the ILR salary threshold keep increasing in the future?
It’s highly likely. Over recent years, the minimum salary has risen from £26,200 to £38,700, and now to £41,700. Applicants should monitor annual updates from UKVI.
What happens if I don’t meet the salary threshold when applying for ILR?
If your salary doesn’t meet the required level, your ILR application may be refused. You may need to wait, negotiate a raise, or explore alternative visa routes to remain legally in the UK.
Are there different ILR requirements for Skilled Worker visa holders who applied before April 2024?
Yes. If your first Certificate of Sponsorship (CoS) was issued before April 4, 2024, you may qualify under older salary rules. Those applying after that date must meet the new £41,700 threshold.
Can I switch to another visa category if I can’t meet the ILR salary requirement?
Possibly. Options include partner visas, Global Talent, or Innovator Founder visas, depending on your eligibility. Always consult a licensed immigration adviser before switching.
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