The £8,300 question: Can you afford to keep your sponsored worker?

Many UK employers plan carefully for the cost of hiring overseas talent, but far fewer plan for what it takes to keep them.

We are increasingly seeing businesses sponsor skilled workers under the “new entrant” salary rules, where the hire works out well, and the employee quickly becomes a valued part of the team. When the visa comes up for extension, however, the issue becomes clear.

The salary no longer meets Home Office requirements, the increase is significant, and the business has not planned for it. Suddenly, a valued employee is at risk of being lost.

This is not an isolated case. It is an avoidable problem that many employers only recognise when it is too late.

What is a “new entrant” under the Skilled Worker visa?

Under the UK Skilled Worker visa route, certain candidates qualify for reduced salary thresholds if they are considered “new entrants”. This typically includes:

• Graduates entering the workforce
• Individuals under a certain age threshold
• Workers progressing through structured professional training

For many employers, this has made sponsorship more accessible by reducing the initial salary threshold to £33,400 per year. However, this lower threshold is not intended to be a permanent arrangement.

The Skilled Worker visa extension problem employers miss

The challenge typically emerges around two years in, at the point of visa extension.

Once a worker reaches the end of their “new entrant” period, they must meet the full Skilled Worker salary thresholds to remain eligible. In many cases, this means:

• Moving from approximately £33,400 to at least £41,700
• Or meeting a higher “going rate” linked to the relevant occupation code

That is a minimum increase of £8,300 per year.

The true cost is higher once you factor in:

• Employer National Insurance contributions
• Pension obligations
• Internal salary benchmarking pressures

See also: The UK Skilled Worker visa salary threshold increase explained

Why employers should review their population now

Many employers carefully budget for sponsorship costs, including visa fees and the Immigration Skills Charge, but overlook future salary obligations.

Key questions to consider:

• Which sponsored workers were sponsored as new entrants?
• When will they require an extension application?
• What salary will they need to meet at that stage?
• Can the business realistically afford that increase?
• Does the role justify that salary commercially and internally?

Waiting until a visa is due for extension can leave businesses with limited options.

A retention risk, not just an immigration risk

This is not simply an immigration compliance issue.

Employers invest significant time and resources into recruiting, onboarding and training sponsored workers. Losing a highly skilled employee because the business did not plan for a future salary increase can create operational disruption and trigger another costly recruitment exercise.

Forward planning helps avoid a situation where both employer and employee have built a successful working relationship, only to discover that continuing sponsorship is no longer financially viable.

What should employers do?

We recommend that UK sponsor licence holders conduct a review of all Skilled Workers who were sponsored using new entrant provisions and identify:

• Their expected extension dates
• Their current salaries
• The salary likely to be required at extension
• Any budgetary adjustments needed over the next 12 to 24 months

Plan ahead to protect your sponsored workforce and avoid costly surprises at extension stage. Speak to our business immigration team today to find out how we can support your HR consultancy. Email us at [email protected] or give us a call on +44(0)2077595420.