UK’s new £41,700 benchmark for Skilled Workers

As of 22 July 2025, the standard Skilled Worker salary option requires a pay of at least £41,700 and the relevant going rate for the occupation code.

This change, which is part of the Statement of Changes to the Immigration Rules HC 997, is part of a broader immigration reset designed to prioritise high-skilled workers and ensure fair wage standards for migrant workers in the UK.

For skilled workers and the companies that sponsor them, understanding how this new threshold interacts with occupation going rates, the Immigration Salary List (ISL) and the newly introduced Temporary Shortage List (TSL) is crucial to staying compliant and competitive.

What has changed?

At the heart of the HC 997 changes is a significant rise in the general salary requirement for Skilled Worker visas:

📈 General Skilled Worker Threshold: From 22 July 2025, new Skilled Worker visa applications must meet a minimum salary of £41,700 or the higher going rate for any specific job.

This is a notable increase from the previous rate of £38,700. These thresholds apply to applications made under the post-22 July 2025 rules (typically where the CoS is assigned under the updated framework), subject to transitional provisions.

Salary discounts still exist (with conditions)

While £41,700 is the general rate, there are still salary discounts available for some candidates:

• 🎓 Relevant PhD holders: A reduced rate applies if the PhD is directly relevant to the role.
• 👶 New entrants: Workers aged under 26 or switching from a UK study route must be paid at least £33,400 and at least 70% of the going rate for the occupation code.

Understanding Occupation Going Rates

Salary thresholds for Skilled Worker visas aren’t dictated solely by a flat number. Each occupation is assigned a going rate based on real labour market data (Standard Occupational Classification or SOC codes).

Here’s how this works in practice:

• Going Rate vs. General Threshold: If the going rate for a specific job is higher than £41,700, the migrant must be paid at least that going rate.
• 📊 These going rates are updated periodically to reflect market data from the Office for National Statistics (ONS) and the Annual Survey of Hours and Earnings (ASHE).

For employers sponsoring Skilled Workers, this means routinely checking the latest SOC going rates for your industry to ensure payroll compliance. You can’t just pay £41,700 and tick the box. If the market rate is higher, that’s the figure the Home Office expects.

Immigration Salary List (discounted routes for certain roles)

Before the HC 997 changes, the Immigration Salary List (ISL) served as the UK’s “shortage occupation list”. It identified certain roles with labour shortages and allowed discounted salary thresholds, so employers could sponsor workers at lower pay levels than the general threshold.

Under the new system:

• 🗒️ The Immigration Salary List continues in the short term but is being phased out in favour of the Temporary Shortage List.
• For Roles on the ISL, the minimum salary can be lower (for example, £33,400 under the Skilled Worker salary option for ISL roles), provided the applicant also meets the applicable going-rate requirement.

However, these discounted pathways are temporary and are scheduled to be removed towards the end of 2026.

Temporary Shortage (new pathway for hard-to-fill roles)

To replace and improve on the outdated ISL, the government has introduced the Temporary Shortage List (TSL), designed to help employers fill critical vacancies where the UK labour supply is insufficient.

Here’s how it works in practice:

🔹 Who Can Use the TSL?

The TSL is designed for mid-skilled roles (RQF Level 3–5) that would otherwise not meet the Skilled Worker eligibility criteria.

Examples may include technicians, certain engineering support roles, logistics posts, or specialist trades which have been identified as critical shortages by the Government and the Migration Advisory Committee (MAC).

🔹 Salary Rules on the TSL

• ⚠️ TSL roles have their own published minimum salaries (annual and hourly) set out on GOV.UK, and they are time-limited: sponsorship must be used for applications made with a CoS issued before 31 December 2026. Workers sponsored via the TSL generally still need to meet the appropriate going rate or the general threshold.
• 📅 Occupations on the TSL are time-limited, with current removal provisions set for the end of 2026.
• 👨‍👩‍👧 Workers in TSL roles are generally not permitted to bring dependants if their job sits below RQF Level 6, something employers must factor into their recruitment.

What this means for skilled workers & sponsors

For Skilled Workers

If you are planning to apply from overseas:

• You must secure a job paying at least £41,700 or the relevant going rate under a new CoS issued after 22 July 2025.
• Roles on the TSL keep certain lower-skill jobs eligible, but don’t necessarily reduce salary expectations.

For Sponsoring Employers

Employers need to:

• Review current and future job offers to ensure compliance with the updated salary landscape, including going rates.
• Track changes to the ISL and TSL lists to determine if lower-skill openings are still eligible.
• Factor in evolving rules on dependants and visa conditions, especially for RQF3–5 roles.

Conclusion

The new £41,700 benchmark marks a clear policy shift. The UK is tightening its doors on low-paid work visas while still retaining flexibility for specific shortage roles through lists like the ISL and TSL. Employers and prospective skilled workers must proactively monitor changing salaries, job offers, and sponsorship plans to ensure compliance with evolving rules.

So, whether you are looking to sponsor or become a Skilled Worker in the UK, reach out to A2Z Immigration for any support or clarity regarding the continuously evolving immigration landscape in the UK.