TL;DR: The UK government has confirmed significant increases to the minimum salary thresholds for the Skilled Worker and Health & Care visas, effective from 4 April 2024. Sponsors must adjust salaries to at least £38,700 (general) or the ‘going rate’ for the occupation, whichever is higher, to sponsor new hires or extensions.
Introduction
The UK’s immigration landscape is undergoing a significant recalibration, with salary requirements at the forefront of the changes announced on 4 March 2024. This shift from the previous rules, which had a general threshold of £26,200 and occupation-specific ‘going rates’, represents a substantial policy tightening aimed at prioritising higher-skilled migration. The official policy statement, HC 590, outlines a phased approach to these increases, directly impacting how employers recruit overseas talent and how existing migrants must plan for visa extensions. The primary focus for affected stakeholders is understanding the specific numbers and timelines attached to the new immigration salary threshold.
What is the Immigration Salary Threshold?
The immigration salary threshold is the minimum annual salary an employer must pay to a migrant worker they are sponsoring under specific visa routes, primarily the Skilled Worker visa. This figure is set by the Home Office and serves as a core financial requirement of the sponsorship system. The threshold is designed to ensure migrants are filling genuine skilled roles that command competitive wages, thereby protecting the domestic labour market. The new policy introduces two critical benchmarks: a significantly higher general threshold and updated occupation-specific ‘going rates’, with employers required to pay the higher of the two figures.
A Detailed Look at the New Thresholds
The centrepiece of the 4 April 2024 changes is the sharp increase in the general salary threshold for Skilled Worker visas. Previously set at £26,200, the new baseline is £38,700, representing an increase of over 47%. Simultaneously, the government has updated the occupation-specific ‘going rates’, transitioning them from the 25th percentile of earnings for a job to the median (50th percentile). For most occupations, this means a substantial rise in the required pay. Sponsors must calculate the required salary for a role by taking the higher figure of either the general threshold (£38,700) or the new median going rate for the relevant Standard Occupational Classification (SOC) code. This dual-test mechanism ensures salaries are competitive both against a national baseline and within the specific profession.
How Do Transitional Arrangements Work?
Recognising the immediate disruption such hikes could cause, the Home Office has implemented transitional arrangements for individuals already in the Skilled Worker route before 4 April 2024. When these workers apply to extend their visa, change employer, or apply for settlement, they will be subject to the old, lower thresholds. Specifically, the general threshold for this group will remain at £26,200, and the occupation-specific going rate will be based on the 25th percentile from the 2023 pay data, not the new median. This provides crucial stability for existing migrants and their sponsors, allowing salary progression to be managed over a longer period. However, it creates a two-tier system where new hires after 4 April face the full £38,700+ requirement immediately.
What About the Health and Care Visa?
The Health and Care visa, while included in the threshold increase, is subject to distinct and more moderate rules. For this route, the general salary threshold will rise to £29,000 from 4 April 2024, not the £38,700 applied to the main Skilled Worker route. Furthermore, individuals in Health and Care visa roles are exempt from the new median going rate requirement. They will continue to be assessed against the old going rates, based on the 25th percentile. This carve-out acknowledges the specific pressures and pay structures within the health and social care sectors, where many roles are on national pay scales like Agenda for Change. It aims to prevent the policy from exacerbating staffing shortages in these critical services.
Implications for Sponsors & Employers
The new thresholds present a direct financial and strategic challenge for UK sponsors. Companies planning to hire skilled workers from overseas after 4 April 2024 must budget for significantly higher salary offers to meet the £38,700+ requirement. This may alter hiring strategies, potentially shifting focus towards more senior roles or different geographic talent pools. For roles currently filled by migrants on Skilled Worker visas, sponsors must plan for future salary progression, especially for employees who may eventually need to qualify under the new rules if they fall outside the transitional protection. The changes necessitate a review of all Certificate of Sponsorship (CoS) assignments and future recruitment pipelines to ensure compliance and commercial viability.
Key Takeaways
- The general salary threshold for the Skilled Worker visa increases from £26,200 to £38,700 on 4 April 2024.
- The occupation-specific ‘going rate’ will be based on the median (50th percentile) salary instead of the 25th percentile; sponsors must pay the higher of this new going rate or £38,700.
- Transitional arrangements protect existing Skilled Worker migrants, who will face the old lower thresholds (£26,200 and 25th percentile going rates) when extending visas or settling.
- The Health and Care visa sees a smaller increase to a £29,000 general threshold and is exempt from the new median going rates.
- Sponsors hiring new Skilled Workers after 4 April must immediately comply with the full new salary requirements, impacting recruitment costs and strategies.
Conclusion
The 2024 increase to the UK’s immigration salary thresholds marks a definitive policy shift towards higher-value economic migration. By substantially raising the financial bar, the government aims to focus the Skilled Worker route on more senior and higher-paid roles. The detailed mechanisms, including the shift to median going rates and the sector-specific relief for health and care, demonstrate a calibrated approach. For sponsors, migrants, and the broader labour market, these changes will reshape the economics of hiring overseas talent, placing a greater emphasis on salary competitiveness and long-term workforce planning within the UK’s points-based system.