Migration Advisory Committee report on salary thresholds: what employers need to know

The Migration Advisory Committee (MAC) has published its long-awaited review of salary thresholds across the UK’s sponsored work routes, including Skilled Worker, Health and Care Worker, Global Business Mobility and Scale-up.

While no immediate rule changes have been announced, this report is important. It sets out the MAC’s recommended direction of travel for salary thresholds and discounts, and it will heavily influence future Home Office policy decisions. 

Employers relying on sponsored workers should understand what is being proposed and how it could affect workforce planning over the next 12–24 months.

What follows is a summary of the key conclusions.

Skilled Worker route: general salary threshold

The MAC recommends keeping the general Skilled Worker salary threshold at £41,700, rather than increasing it further.

In the MAC’s view, this level:

• maximises fiscal benefit to the UK,
• supports recruitment in priority and Industrial Strategy sectors, and
• reflects variation in pay across the UK more realistically than higher thresholds.

An increase to around £48,400 was considered, but the MAC concluded this would be less economically beneficial overall and would significantly raise effective thresholds for most roles.

This is notable. It signals resistance to further headline increases after the substantial rises in 2024 and 2025.

Occupation-specific “going rates”

The MAC again recommends that occupation-specific salary thresholds should be set at the 25th percentile, not the median.

Their reasoning is consistent with previous reviews:

• median rates risk excluding legitimate roles within occupations,
• lower-paid but still skilled roles would be disproportionately impacted, and
• using the 25th percentile still protects against undercutting the resident labour market.

Importantly, the MAC also confirms that salary thresholds should remain UK-wide, rejecting regional thresholds due to complexity and limited benefit.

Annual updates to salary thresholds

Alongside its salary proposals, the report recommends that salary thresholds are reviewed and updated on a scheduled annual basis.

The aim is predictability. Employers would know when changes are coming, rather than facing irregular and disruptive step-changes. The MAC also notes that any future rule changes should be based on the most recent ASHE earnings data available at the time. 

New entrant salary discount

The MAC recommends a single new entrant salary threshold of £33,400. It also recognises that higher Skilled Worker salary thresholds have lengthened the period over which new entrants need discounted rates in order to reach full salary requirements.

On that basis, the MAC indicates that the current four-year new entrant period may be insufficient and recommends that discounted rates should be available for their full permitted duration, regardless of the length of the initial visa grant.

PhD and postdoctoral discounts

The MAC takes a firmer stance here:

• The PhD salary discount should be abolished, as there is no evidence PhD holders earn less overall.
• A postdoctoral discount is not actively recommended, but if retained for policy reasons, the MAC suggests a flat threshold of £41,700 for up to four years.

If Skilled Worker thresholds remain as recommended, the MAC notes that a postdoctoral discount may become unnecessary in practice.

Temporary Shortage List (TSL)

For the Temporary Shortage List, the MAC recommends:

• a minimum general salary threshold of around £30,900 (roughly the 30th percentile of UK earnings),
• with occupation-specific thresholds set at the median.

This recommendation assumes the route does not lead to settlement (Indefinite Leave to Remain). If settlement were introduced, the MAC says salary levels would need to increase to ensure long-term fiscal contribution.

Global Business Mobility routes

The MAC recommends a clearer distinction between routes intended for senior staff and those for early-career mobility:

• Senior or Specialist Worker: Both general and occupation-specific thresholds should be set at the median, reflecting the genuinely senior nature of the route.
• Graduate Trainee: A single salary threshold of £33,400, aligned with the Skilled Worker new entrant rate, with occupation-specific rates removed.
• UK Expansion Worker: Thresholds should remain aligned to the median, both generally and by occupation

Health and Care Worker route

For roles paid on national pay scales, the MAC recommends:

• a general threshold aligned to Band 5 at the lowest-paying UK nation, and
• continued use of pay-scale-based occupation thresholds.

For non-pay-scale roles, thresholds should broadly follow Skilled Worker methodology, with transitional protections for existing workers, particularly those in RQF 3–5 roles.

Scale-up route: future in doubt

The report also considers the future of the Scale-up route.

The MAC recommends aligning Scale-up salary thresholds with the Skilled Worker route and notes that this would remove the main incentive for employers to use it. In light of low uptake and administrative cost, the MAC questions whether the route delivers value for money.

What all this means for employers

No immediate changes have been implemented, and the Home Office has not yet responded. These are recommendations from the Migration Advisory Committee, intended to inform future policy decisions.

Taken together, the report signals that:

• the MAC is advising against further headline increases to salary thresholds,
• occupation-specific flexibility should remain central to the system,
• discounts are likely to be more tightly defined, and
• the Home Office is being encouraged to move towards scheduled, annual updates to salary requirements.

If you would like to discuss how these recommendations may affect your sponsor licence, recruitment plans, or sponsored workforce, this is likely to be a sensible piece of planning for early 2026 rather than something requiring immediate action. Immtell can support that forward review under the current immigration rules and help you prepare for any policy changes that may follow.