The Migration Advisory Committee (MAC) has published a technical note outlining a proposed methodology for calculating salary thresholds under the Skilled Worker route. Whilst the note does not introduce any immediate changes to the Immigration Rules, it provides important insight into how future salary thresholds may be set and updated.
The proposals are intended to create a more transparent, consistent and predictable framework for calculating both general salary thresholds and occupation-specific going rates. If adopted by the Home Office, the methodology could have significant implications for sponsors that rely on international talent, particularly where roles sit close to current salary minimums.
In May 2026, the MAC published a technical note setting out its recommended approach to calculating Skilled Worker salary thresholds.
The note responds to a practical challenge that has become increasingly evident since the major reforms to salary thresholds introduced in 2024. Whilst the system is intended to reflect labour market conditions using earnings data from the Annual Survey of Hours and Earnings (ASHE), there can be significant year-to-year fluctuations and, in some occupations, insufficient data to produce reliable salary figures.
To address these issues, the MAC has proposed several changes.
Salary smoothing
Perhaps the most significant proposal is the introduction of a salary smoothing mechanism.
Rather than calculating salary thresholds solely using the latest available earnings data, the MAC proposes using a weighted average of earnings data from the current year and the previous two years. Under the proposed model, greater weighting would be given to the most recent data whilst still taking account of historic trends.
The intention is to reduce volatility and avoid situations where salary thresholds increase or decrease significantly as a result of short-term labour market movements or statistical anomalies.
For employers, this could result in greater predictability when budgeting for sponsored recruitment and workforce planning.
Alternative methodologies where earnings data is limited
The MAC also recognises that reliable earnings data is not always available for every occupation. This is particularly relevant for specialist, niche or emerging roles where survey sample sizes may be too small to produce statistically robust figures.
The technical note therefore proposes alternative methodologies that could be used to estimate salary levels where direct occupation-specific data is unavailable. These approaches are intended to ensure salary thresholds can continue to be calculated consistently across the immigration system whilst remaining broadly aligned to labour market conditions.
Greater consistency in future updates
More broadly, the technical note forms part of the MAC’s ongoing efforts to create a clearer and more systematic approach to salary threshold setting.
Whilst no recommendations are made regarding the actual level of future salary thresholds, the publication reinforces the principle that immigration salary requirements should remain closely linked to UK earnings data and subject to regular review.
The result is likely to be a framework that is more transparent and easier to administer, but which may also lead to more regular recalibration of salary requirements over time.
Whilst the technical note does not change current sponsorship requirements, it provides a strong indication of the direction of travel for UK work immigration policy.
For sponsors, the proposals could offer greater certainty than the current system by reducing sudden movements in occupation-specific salary rates. This may make it easier to forecast future immigration costs, budget for international recruitment and manage workforce planning exercises.
However, the proposals also reinforce that salary thresholds are likely to remain a dynamic feature of the immigration system. Organisations should not assume that current salary requirements will remain static and should continue to monitor future updates closely.
Businesses that sponsor workers in roles that sit close to the applicable salary threshold may wish to assess whether future increases could affect recruitment pipelines, extension applications or longer-term workforce strategies. Similarly, employers operating in specialist sectors should remain alert to how alternative salary calculation methodologies may impact occupation-specific going rates in future years.
More broadly, the publication reflects the government’s continued focus on using salary thresholds as a key policy mechanism within the UK’s work immigration framework. As a result, salary planning is increasingly becoming an important component of immigration compliance and talent strategy.
At present, no changes to salary thresholds have been announced and existing Skilled Worker salary requirements remain in force.
Sponsors should continue to monitor developments and consider the potential impact of future salary threshold changes as part of broader workforce planning, recruitment and immigration compliance strategies.
Vialto Partners will continue to monitor developments and provide updates should the Home Office indicate that it intends to adopt any of the MAC’s proposed methodologies.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Adam Sinfield
Director
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