Increase to National Living Wage to impact SW minimum salary requirements in April 2025.
The UK government’s chancellor (Rachel Reeves) has announced in today’s Autumn Budget [30 October 2024] that National Living Wage and National Minimum Wages are set to increase in [April 2025].
National Living Wage, applicable to over 21s, will increase from £11.44 to £12.21 (6.7% increase).
National Minimum Wage, applicable to 18–20-year-olds, will increase from £8.60 to £10 per hour (16% increase).
While some skilled workers will welcome a (probably well-deserved) pay rise next spring, small and mid-size businesses will be braced for the increases. Many employers will need to plan their budget carefully, to ensure that the rises are affordable.
Impact for sponsors of skilled workers
All employers must ensure salaries are in line with the thresholds. This includes skilled worker sponsors, who must remain compliant with the employment law, as an additional sponsorship duty.
Impact for skilled workers
Workers already sponsored at a rate that falls below the future thresholds must have their salaries increased when the change becomes effective in April 2025.
This change would affect care workers and some other migrants who currently benefit from lower salary thresholds for sponsorship.
Immigration Rules
It is very likely that, in due course, the immigration rules will be amended in line with the new law.
Note that only those aged 18 years and above are eligible to apply for skilled worker visas.
Our predictions
We predict that ‘going rates’ will go up from £11.90 to (at least) £12.21 per hour.
We also predict that the minimum general threshold will increase from £23,200 to £23,809.50 (at least).
Key Takeaway
Whether or not minimum salaries for sponsorship are updated in the immigration rules, all employers must pay their workers at least UK National Living Wage / National Minimum Wage.
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