April 4, 2024, marked a fundamental shift in the UK’s skilled migration landscape. In a move designed to reduce net migration, the government implemented a significant increase in the general salary threshold for Skilled Worker visas—from £26,200 to £38,700. The threshold was subsequently raised again to £41,700 in 2025 through a later Statement of Changes. Moving into 2026, the market has now had nearly two years to absorb these changes, and the effects continue to reshape recruitment strategies nationwide.
This article details the mechanics of the threshold changes and the introduction of the Immigration Salary List (ISL).
The Salary Threshold Increases
The general threshold was previously set at £26,200—a figure roughly aligned with the 25th percentile of UK earnings. The April 2024 change raised this to £38,700, aligning it more closely with median full-time gross annual earnings. A further increase in 2025 brought the threshold to the current level of £41,700.
The April 2024 jump alone rendered thousands of roles ineligible for sponsorship, particularly in the hospitality, retail, and junior administrative sectors outside of London. For a role to be sponsorable, it must pay the higher of:
- The general threshold (currently £41,700).
- The “going rate” for the specific occupation code (SOC 2020).
The “Going Rate” Trap
It is not just the general threshold that rose. The “going rates” for individual jobs were also recalibrated from the 25th percentile to the 50th percentile (median). These going rates were further updated in April 2025 under HC 733, which also changed the standard working week from 40 hours to 37.5 hours for the purpose of salary calculations.
- Example: A senior software engineer might easily meet the £41,700 general threshold. However, if the median wage for their specific SOC code is £55,000, the sponsor must pay £55,000. This dual-lock mechanism ensures that foreign workers cannot be used to undercut domestic wages.
The Immigration Salary List (ISL)
The old “Shortage Occupation List” (SOL), which allowed employers to pay 20% less than the going rate, has been abolished. In its place is the Immigration Salary List (ISL).
- No 20% Discount: Being on the ISL no longer offers a 20% discount on the going rate. It only offers a lower general threshold (usually £33,400 instead of the full £41,700), but the employer must still pay the occupation’s standard median wage.
- Fewer Roles: The list is far shorter, focused largely on construction, care, and specialised engineering roles where the government concedes overseas labour is unavoidable.
Who is Exempt?
To prevent the total collapse of graduate recruitment, strictly defined “New Entrants” are eligible for a salary discount.
- Criteria: Applicants under 26, those switching from Student visas, or those working towards professional qualifications (e.g., architects, accountants).
- The Discount: They can be paid 70% of the going rate, provided it is at least £33,400 per year.
- Time Limit: This status is valid for a maximum of 4 years (including time spent on a Graduate visa), after which they must move onto the full rate or leave the UK.
Health and Care Visa Exception
Crucially, the Health and Care Worker visa remains exempt from the £41,700 general threshold. The minimum salary for this route is currently £25,000 (updated from £23,200 by HC 733 in April 2025). Health and care workers are also subject to separate restrictions regarding dependants (for care workers) and sponsor legitimacy.
Regional Impact
The policy has had a disproportionate impact on the UK’s regions. A £41,700 salary is a high-end wage in parts of the North East, Wales, and Northern Ireland, whereas it is a standard junior-mid level salary in London. Critics argue this effectively creates a “London-only” visa system for the private sector, making it prohibitively expensive for regional businesses to access global talent.
Conclusion
The phased increases from £26,200 to £38,700 (April 2024) and then to £41,700 (2025) have fundamentally altered the economics of visa sponsorship. Employers now treat sponsorship as a premium route reserved for high-value talent, and the strategy of using it to fill lower-to-mid level vacancies is no longer viable for most businesses.