1. Introduction

The UK government has announced an increase in the National Minimum Wage (NMW) and National Living Wage (NLW), effective from 1 April 2025. Employers sponsoring migrant workers must ensure salaries meet these updated rates—failure to comply risks sponsor licence suspension or revocation.

2. UK Minimum Wage Rates: April 2024 vs. April 2025

Age Group	April 2024 (Current Rate)	April 2025 (New Rate)
21 and over (NLW)	£11.44	£12.21
18 to 20	£8.60	£10.00
Under 18	£6.40	£7.55
Apprentices	£6.40	£7.55

Key Takeaways:

● Largest Increase: Under 18s & apprentices (+18%).

● National Living Wage (21+): Now £12.21/hour (up from £11.44).

● Employer Action Required: Adjust salaries before 1 April 2025 to avoid compliance risks.

Example 1:

● Weekly Hours: 37.5

● Suppose Current Salary: £23,200/year

● New Minimum Required (2025):

○ 37.5 hrs × 52 weeks × £12.21 = £23,809.50/year

○ Result: £23,200 is below the new threshold. Salary must increase.

Example 2:

● Weekly Hours: 39

● New Minimum Required (2025):

○ 39 hrs × 52 weeks × £12.21 = £24,749.88/year

⚠️ Risk of Non-Compliance:

● Sponsor licence suspension/revocation

● Home Office compliance audits

● Reputational damage & legal penalties

3. Why This is Important for Employers

For employers holding a sponsor licence, this update is not just a compliance formality — it's a critical legal obligation. The salary stated on the Certificate of Sponsorship (CoS) must meet or exceed the minimum wage requirements based on actual working hours.

If your employees' working hours and salary do not align with the new minimum wage thresholds, your sponsor licence could face suspension or even revocation.

Even if the CoS was issued before these changes, employers are responsible for adjusting salaries in accordance with the updated rates.

4. How Can Work Permit Cloud Help?

Ensure seamless compliance with our UKVI-compliant HR software. Our platform helps manage employee records including performance review, contract management tools, and absence tracking.

Don’t risk your sponsor licence—book a free consultation or explore our compliant HR software today!

5. Conclusion

With the new wage rates kicking in from April 2025, staying compliant isn’t optional — it’s essential. Whether you're hiring new talent or reviewing existing employees, ensure your salary structures align with the updated minimum thresholds.

Don’t wait for a compliance issue to surface — act now and stay ahead with WorkPermitCloud.