Fresh guidance published on 11 January 2026 under Appendix Skilled Worker tightens what counts as eligible pay for sponsored employees. The Home Office now explicitly excludes any money the worker pays back to the sponsor—whether for business costs, immigration fees or investment—from the salary calculation used to meet threshold requirements. (fivestarinternational.co.uk)
Paragraph SW 14.2A bars deductions or payments that subsidise the worker’s own salary or the sponsor’s immigration expenses. Transitional provisions allow certain Tier 2 (General) migrants to continue counting guaranteed allowances until 1 December 2026, but only if strict conditions are met. (fivestarinternational.co.uk)
![Sponsor-Licence Crackdown: New Rules Ban Salary Kickbacks and Fee Recovery]()
The guidance also clarifies that companies cannot recoup sponsor-related costs—such as the Sponsor Licence fee, Certificates of Sponsorship or the Immigration Skills Charge—from employees on any route. Violations could trigger licence revocation, jeopardising an entire migrant workforce. (fivestarinternational.co.uk)
Sponsors should conduct immediate payroll audits, cease ‘claw-back’ clauses in contracts and ensure that optional salary-sacrifice schemes do not push pay below the relevant thresholds. HR systems must track any deductions over the full sponsorship period to demonstrate compliance during Home Office audits.
Paragraph SW 14.2A bars deductions or payments that subsidise the worker’s own salary or the sponsor’s immigration expenses. Transitional provisions allow certain Tier 2 (General) migrants to continue counting guaranteed allowances until 1 December 2026, but only if strict conditions are met. (fivestarinternational.co.uk)
The guidance also clarifies that companies cannot recoup sponsor-related costs—such as the Sponsor Licence fee, Certificates of Sponsorship or the Immigration Skills Charge—from employees on any route. Violations could trigger licence revocation, jeopardising an entire migrant workforce. (fivestarinternational.co.uk)
Sponsors should conduct immediate payroll audits, cease ‘claw-back’ clauses in contracts and ensure that optional salary-sacrifice schemes do not push pay below the relevant thresholds. HR systems must track any deductions over the full sponsorship period to demonstrate compliance during Home Office audits.
Source: Five Star International
