MAC recommends keeping Skilled Worker salary threshold at £41,700
In this update by Leena Chouhan, Head of Immigration, we examine the MAC committee approach to skilled worker salary levels. The Migration Advisory Committee has published its long awaited review of salary requirements for UK work visas. Indeed, the report completes a commission from former Home Secretary Yvette Cooper and covers the Skilled Worker, Health and Care Worker, Global Business Mobility and Scale up routes.
First, the Committee confirms that salary thresholds serve several policy aims. These include protecting domestic workers, supporting fiscal outcomes and managing net migration. Therefore, the appropriate level depends on government priorities.
MAC skilled worker salary recommendations
Importantly, the MAC recommends keeping the general Skilled Worker salary threshold at £41,700. At the same time, it advises lowering occupation specific thresholds from the median back to the 25th percentile of earnings. In its view, the general threshold is the main lever for controlling migration levels. Lower occupation thresholds are sufficient to prevent undercutting without distorting the system in favour of lower paid roles or regions.
Next, the Committee considers alternative threshold levels. It finds that raising the general threshold to £48,400 would broadly replicate the current system but with weaker fiscal outcomes. A further increase to £52,500 would exclude many economically beneficial migrants and reduce net fiscal returns. By contrast, retaining the £41,700 threshold would maximise fiscal benefits and support recruitment in key Industrial Strategy sectors.
Regional Impact of Salary Thresholds
The report also highlights the regional impact of salary thresholds. Lower occupation specific thresholds would be more affordable for employers outside London. However, the MAC rejects regional salary thresholds due to complexity and enforcement risks. Instead, it recommends UK wide thresholds with annual updates to reflect labour market conditions. Any rule changes should use the most recent ASHE data available.
Turning to salary discounts, the Committee proposes significant reform. It recommends a single new entrant salary of £33,400 to reflect typical graduate starting pay. It also advises abolishing the PhD salary discount due to a lack of evidence that PhD holders require lower pay. If the general Skilled Worker threshold remains at £41,700, the MAC concludes that a postdoctoral discount would no longer be necessary.
For the Temporary Shortage List, the Committee recommends keeping occupation specific thresholds at the median. The general threshold should not fall below £30,900 which it considers consistent with a reasonable standard of living. If the route remains temporary and does not lead to settlement, this level is appropriate. Otherwise, it may need to rise.
The report also sets out recommendations for other routes. For Global Business Mobility, senior and specialist roles should be paid at median levels to reflect genuine seniority. Graduate trainees should have a single threshold of £33,400. For Health and Care Worker roles, pay scale occupations should align with national pay bands to ensure consistent recruitment across the UK.
Other routes – the scale up visa
Finally, the MAC questions the value of low uptake routes such as the Scale up visa. It suggests aligning salary thresholds with the Skilled Worker route and notes that abolition would make little practical difference. The Committee also calls for better Home Office data on salary discounts and clearer guidance for employers on their right to prioritise candidates who do not require sponsorship.
Conclusion Skilled Worker Salary information
It is important to consult a professional immigration expert in order to get your visa application right. For more information on the skilled worker salary thresholds and route to UK immigration please contact our office. Our head of immigration is Leena Chouhan who can be contacted on [email protected] or 0044 207 427 5972