TL;DR: The UK Home Office has increased the minimum salary thresholds for Skilled Worker and Family visas from 4 April 2024, raising the general salary threshold to £38,700. For the Health and Care Visa, the going rate remains at the 25th percentile, with some transitional arrangements for existing visa holders and applicants.
Introduction: A Step Change in Minimum Salary Requirements
The landscape of UK skilled migration has undergone a significant recalibration with the implementation of new, higher salary thresholds for the Skilled Worker route. These changes, detailed in Statement of Changes HC 590 laid before Parliament on 14 March 2024, mark the first stage of a broader government strategy to reduce net migration. The adjustments represent a substantial jump from previous levels, moving the general threshold from £26,200 to £38,700 overnight. For sponsors and affected workers, this policy shift fundamentally alters the economic viability and strategic planning for hiring non-settled labour from abroad. The context for these changes is a political commitment to curtail immigration numbers, with the Skilled Worker route being a primary lever for adjustment.
What are the UK Salary Thresholds?
UK salary thresholds are the minimum earnings levels set by the Home Office that an individual must meet to qualify for a specific work-related visa, most notably the Skilled Worker Visa. These thresholds are a core component of the UK’s points-based immigration system, designed to ensure that migrant workers are filling skilled roles that contribute significantly to the economy and are paid at or above a designated rate. The thresholds are comprised of two main elements: a general minimum salary level and a “going rate” for the specific occupation, with applicants required to meet the higher of the two figures. The recent policy update has substantially increased these baseline financial requirements for new applicants.
How Have the Skilled Worker Visa Salary Rules Changed?
The key change effective from 4 April 2024 is the increase to the general minimum salary threshold. The Home Office states that this has risen from £26,200 to £38,700. Concurrently, the method for calculating the occupation-specific “going rate” has shifted. Previously set at the 25th percentile of earnings for a given occupation code (SOC code), the new rules elevate the standard going rate to the median (50th percentile) for most roles. However, a crucial exception exists for occupations on the Immigration Salary List (ISL, formerly the Shortage Occupation List) and for individuals applying under the Health and Care Visa route, where the going rate will remain at the 25th percentile.
This creates a dual-tier system. For a standard Skilled Worker application, sponsors must ensure the offered salary meets the higher of £38,700 or the median salary for the SOC 2020 occupation code. For roles on the ISL or for Health and Care Visa applicants, the test is the higher of £30,960 (80% of the new general threshold) or the 25th percentile salary for the occupation. This differentiation is intended to provide continued, slightly discounted access for sectors with recognised labour shortages and for vital health and social care roles.
Who is Affected by the New Salary Thresholds?
The changes have distinct implications for different groups of applicants and sponsors. New applicants for the Skilled Worker visa submitting applications on or after 4 April 2024 are subject to the new, higher thresholds immediately. There is no phasing-in period for this cohort.
Existing Skilled Worker visa holders seeking to extend their leave, change employer (within the route), or apply for settlement are offered transitional protection. According to the updated guidance, these individuals will not be subject to the new £38,700 threshold or the new median going rates. Instead, when they next make an application, they will be required to meet the higher of the general threshold that applied at the time of their last grant of leave (e.g., £26,200) or the going rate for their occupation as it stood on 4 April 2024. This provides significant relief for current migrants and their employers.
Health and Care Visa applicants are subject to a separate set of rules. The general salary threshold for this route remains at £20,960, and the going rate is frozen at the 25th percentile. This exemption recognises the critical need for staff in this sector and the government’s reliance on international recruitment to sustain health and social care services.
What Are the Implications for Sponsors and Employers?
For UK employers holding sponsor licences, these changes necessitate urgent reviews of recruitment strategy and workforce planning. Sponsors must ensure that any Certificate of Sponsorship (CoS) assigned on or after 4 April 2024 for a new overseas recruit meets the new salary requirements. Failure to do so will result in a mandatory visa refusal.
The increased cost of hiring from overseas may lead sponsors to reconsider whether roles can be filled domestically or whether the business case supports the higher salary outlay. It may also accelerate wage inflation in certain skilled sectors as employers compete for a more limited pool of eligible overseas talent. Sponsors with existing migrant employees should carefully note the transitional rules to correctly calculate the required salary for extensions and changes of employment, avoiding the unnecessary application of the new £38,700 threshold where it does not apply.
Key Takeaways for Applicants and Sponsors
- The general minimum salary threshold for the Skilled Worker visa increased from £26,200 to £38,700 on 4 April 2024.
- The standard “going rate” for occupations has shifted from the 25th to the 50th percentile (median), except for roles on the Immigration Salary List and Health and Care Visa occupations.
- Existing Skilled Worker visa holders benefit from transitional arrangements and are not required to meet the new £38,700 threshold for extensions, changes of employment, or settlement.
- The Health and Care Visa route maintains a lower general threshold of £20,960 and uses the 25th percentile going rate.
- Sponsors must ensure all Certificates of Sponsorship issued from 4 April comply with the new salary rules to avoid visa refusals.
Conclusion
The April 2024 increase to UK salary thresholds represents a pivotal moment in the government’s management of skilled migration. By substantially raising the financial bar for entry, the policy aims to prioritise higher-earning migrants and reduce overall numbers. While transitional measures offer protection for current visa holders and specific concessions remain for the health and care sector, the new landscape presents a more challenging environment for UK employers seeking to recruit skilled talent from overseas. Sponsors and prospective applicants must navigate these updated rules with careful attention to the specific requirements that apply to their situation based on the application date and visa history.