The UK’s Skilled Worker visa route has undergone significant changes since 2024. Understanding the salary thresholds — and the exceptions to them — is essential for employers sponsoring overseas workers and for individuals applying. This analysis examines the current framework, who it affects, and what the policy evidence says about its effects.
The General Threshold
From April 2024, the general salary threshold for the Skilled Worker visa was raised from £26,200 to £38,700 per annum. This represented a 48% increase — the largest single increase in the route’s history. The threshold was set by the Migration Advisory Committee’s recommendation, which itself reflected a political direction from the Home Office to reduce net migration.
The £38,700 threshold applies to most skilled worker roles. It must be met by the salary offered for the specific role — not by the applicant’s total income — and it must be the higher of the general threshold or the “going rate” for the occupation as defined by the Standard Occupational Classification system. For some occupations, the going rate is higher than the general threshold.
Exceptions and Shortage Occupations
The Shortage Occupation List (SOL) — historically a mechanism for reduced salary thresholds for hard-to-fill roles — was abolished in its previous form in April 2024. In its place, the Immigration Salary List (ISL) allows some roles to be sponsored at 80% of the standard going rate for that occupation, though not below the general threshold of £38,700. The ISL is smaller than the previous SOL and is reviewed annually by the MAC.
Healthcare roles within the NHS are subject to separate provisions. Most clinical roles are sponsored at NHS Agenda for Change pay band rates, which are set nationally by the NHS Pay Review Body. Where a role’s Agenda for Change rate falls below the general threshold — which occurs at Bands 2, 3, and 4 — the NHS has a separate salary threshold of £23,200, reflecting a policy decision to protect NHS recruitment while increasing thresholds for other sectors.
New entrant rates apply to applicants who are recent graduates or who are switching from student to worker status in the UK. New entrants can be sponsored at 70% of the going rate for their occupation, or £30,960 — whichever is higher. This represents a transition period concession rather than a permanent reduced rate.
What the Changes Mean in Practice
For employers in sectors that pay below the general threshold, the increase has effectively closed the Skilled Worker route for many of their typical roles. Hospitality, retail, and social care — sectors that previously relied on overseas skilled workers in roles paying £26,000-£38,000 — are most affected. Employers in these sectors have faced a choice between raising wages (which may not be commercially viable), automating tasks, reducing activity, or operating with unfilled vacancies.
The impact on care workers has been particularly significant. Adult social care employers lost access to the main Skilled Worker route at below-£38,700 rates when the dedicated care worker route was changed in early 2024 to restrict dependants and tighten conditions. The sector, which employs a significant proportion of overseas workers, has reported significant recruitment challenges.
The Policy Evidence
The Migration Advisory Committee’s assessment of the 2024 threshold increase acknowledged that the rise would “significantly reduce” skilled worker applications and that this was the government’s intention. It noted uncertainty about the degree to which reduced overseas recruitment would be offset by domestic recruitment versus unmet vacancies.
Early data published by the Home Office in its Immigration Statistics quarterly shows that Skilled Worker visa applications fell by approximately 40% in the 12 months following the threshold increase, compared to the same period the previous year. Applications from the care sector fell more sharply. The Home Office attributes the fall to a combination of the threshold increase, dependant restrictions, and global economic factors; the MAC has noted that disaggregating these effects is methodologically difficult.