The UK government released an important update on March 28, 2025, which is going to have a big impact on millions of employees working in the country—especially foreign nationals. This update has been brought with clarification and expansion in the guidelines previously issued on March 12, 2025. The changes mainly focus on the national minimum wage, the minimum wages required under different types of visa categories, and the rules related to flexible working hours. These new standards aim to ensure that every employee not only gets a fair wage but also transparency and fairness in employment rules.
National Minimum Wage Increase: Now the value of every hour has increased.
From April 1, 2025, the national minimum wage has been fixed at £12.21 per hour for all employees aged 21 years or above in the UK. This change has been made keeping in mind the country’s economic situation, rising inflation, and protection of labor rights. Whether the employee is a local citizen or a foreigner, this rate will be applicable to all equally. This salary rate is going to provide relief to all those who fall in the low-income group and whose expenses were not met by their current income. It is expected that this new rate will give millions of workers an opportunity to rise above the poverty line and they will be able to better meet the basic needs of life.
Important change in salary threshold for foreign workers
From 9 April 2025, the minimum salary limit for Skilled Worker Visas and other categories has been increased significantly. Now if a foreign national wants to work in the UK under a Skilled Worker Visa, he will have to get a minimum annual salary of £38,700. Earlier this limit was only £26,200. If the applicant has a PhD in a subject related to that job, then this limit is reduced to £34,380. And if the PhD is in a STEM subject, or the job comes in the Shortage Occupation List, or the candidate falls in the “New Entrant” category, then the minimum salary will be only £30,960.
These changes not only make the pay structure transparent but also ensure that only those with the required qualifications and experience are approved for jobs. This higher pay threshold is part of the government’s policy to attract highly skilled professionals to the UK and discourage the hiring of foreigners at lower salaries.
Minimum pay thresholds for special visa categories
Apart from the Skilled Worker Visa, minimum pay rates have also been changed in other visa categories. For example:
- The minimum salary under the Senior or Specialist Worker Visa is now £48,500, up from £45,800 previously. This rate can be higher if the market rate for the specific position or occupation is higher.
- The minimum salary for the Graduate Trainee Visa is now £25,410, up from £24,200 previously. These rates are calculated based on Standard Occupation Classification (SOC) codes and market rates.
All these amendments ensure that employers who employ foreign workers cannot exploit the rules and employees are provided with fair remuneration.
Restructuring of salaries in healthcare and education sectors
The salary rates for people working in the healthcare and education sectors have been adjusted in line with the National Pay Scales. This simply means that professionals associated with these essential services will now get a fair remuneration according to their work and role. The government took this step because the salary structure in these two sectors was not in line with the market for a long time. Now it has been ensured that doctors, nurses, teachers and other essential service providers benefit equally and those interested in the profession get an incentive.
New financial requirements for student visas
From September 10, 2024, the process of proving economic self-sufficiency for student visas has been changed. Students will now have to show that they can afford the necessary living expenses for the duration of their studies (up to a maximum of nine months). This amount will now be equal to the maintenance loan prescribed for British students. This means that foreign students will have to adopt the same standards that apply to British students so that equality is maintained and the tendency to obtain visas on false documents can be stopped.
New criteria for working hours and salary
According to the new rules, the minimum salary limit for employees working under the SOC code will now be fixed on the basis of 37.5 hours per week; earlier it used to be 39 hours. This change is especially important for those whose working hours vary from week to week. New guidelines will now apply to such employees:
- If more than 48 hours are worked in a week, then that work can be included in the calculation of the salary limit, provided that the average working hours do not exceed 48 in every 17 weeks.
- If a week is spent on leave without pay, it will be added to the calculation of average working time.
- Weeks in which employees do not attend work but continue to be employed will not be counted as absences, which will prevent their visa from being cancelled.
Threshold compliance is now more stringent.
Earlier visa officers were given some leeway in threshold compliance, but now it has been made completely stringent. Now if officers suspect that the pay threshold is not in line with the National Minimum Wage or Working Time Regulations, they can immediately issue a notice to the employee. Visa applications will be inevitably rejected. The new rule aims to ensure that fake or below-minimum-wage jobs are not accepted in the UK due to any negligence or confusion.
Curb on pay cuts and irregularities
The new rules, effective from 9 April 2025, ensure that all salary allowances paid are accounted for equitably and transparently. No employer will now be allowed to pass on the cost of sponsorship to foreign employees or hire a foreign national on the condition that the foreign national will invest in their business. This loophole was previously used by many foreign nationals to artificially inflate salary levels and obtain visa approval.
New entrant exemption now required to be linked to education
Foreign nationals who were eligible for the “new entrant” salary exemption are now required to be professionally trained for a UK-recognized qualification. Earlier this was not necessary, due to which many people misused this category just to take advantage of the exemption. This rule will now help curb such fraud and only genuine candidates will get the benefit.
Conclusion: Tough but necessary steps in the interest of workers
All these changes, which will come into effect from April 2025, are a big step towards making the employment sector in the UK more transparent, fair and worker-friendly. The government has ensured that there is no inequality between local and foreign citizens, and workers get full remuneration according to their qualifications, hard work and role. These reforms not only strengthen labor rights but will also help make the UK economy stable and competitive in the long term.
If you are interested in working or studying in the UK, then plan on keeping these new rules in mind. These policies may seem difficult, but their aim is to create equal opportunities and a fair system for all in the long run.
FAQs
Q. What is the new UK national minimum wage from April 1, 2025?
A. The new national minimum wage is £12.21 per hour for workers aged 21 and over.
Q. What is the new salary threshold for Skilled Worker Visas?
A. From April 9, 2025, the minimum salary is £38,700, with lower thresholds for PhD holders and shortage occupations.
Q. Has the minimum salary changed for Graduate Trainee Visas?
A. Yes, it has increased to £25,410 from £24,200.
Q. What are the new financial requirements for student visas?
A. Students must now show proof of funds matching the UK student maintenance loan for up to 9 months.
Q. Are stricter checks being introduced for salary compliance?
A. Yes, authorities must now reject applications that do not meet wage or working hour regulations.
