MAC Salary Review 2025: Could Lower Going Rates Make Sponsorship Viable Again?

When the government raised occupation-specific salary thresholds to the median in April 2024, many UK employers found themselves priced out of sponsorship overnight. Roles that were perfectly sponsorable one day became impossible the next—not because the candidate wasn't qualified, but because the arbitrary going rate for their occupation code exceeded what the business could realistically pay.

Now, there's potential relief on the horizon. In December 2025, the Migration Advisory Committee (MAC) published its Review of Salary Requirements, recommending that occupation-specific thresholds be lowered back to the 25th percentile—the level they were at before the April 2024 changes.

These are recommendations, not law. The government hasn't confirmed whether it will accept them or when any changes might take effect. But for employers who've struggled with the current system, the MAC's findings offer both validation and hope.

TLDR: What You Need to Know

• The MAC recommends lowering occupation-specific "going rates" from the median (50th percentile) back to the 25th percentile—reversing the April 2024 increase that priced many roles out of sponsorship

• The general threshold would stay at £41,700—this remains the baseline for most Skilled Worker applications

• Regional employers and SMEs stand to benefit most—the current median thresholds disproportionately disadvantage areas outside London

• Fiscal analysis supports the change—the MAC estimates £660 million in lifetime fiscal benefit per annual cohort under their recommended thresholds

• Nothing has changed yet—these are recommendations only; the government must formally accept them

If you're weighing up whether sponsorship makes sense for your business—or revisiting roles that failed the going rate test—speak to our team about your options under current and potential future rules.

The Current System: A Quick Recap

Before diving into the MAC's recommendations, let's clarify how Skilled Worker salary requirements actually work in 2025.

To sponsor someone under the Skilled Worker route, you must pay them the higher of:

1. The general threshold: Currently £41,700 per year

2. The occupation-specific going rate: Set at the median (50th percentile) of UK earnings for that occupation code

This "higher of" rule is where many employers get caught out. You might assume that meeting £41,700 is enough—but if the going rate for your occupation code is £54,000, that's the number you need to hit.

Discounts Still Available

Certain categories qualify for reduced thresholds:

Category	General Threshold	Going Rate Requirement
Standard	£41,700	100% of going rate
New entrant (under 26, recent graduate, etc.)	£33,400	70% of going rate
Relevant PhD	£37,500	90% of going rate
STEM PhD	£33,400	80% of going rate
Immigration Salary List	£33,400	100% of going rate

The new entrant discount is capped at four years, including any time on the Graduate route. After that, full thresholds apply.

What the MAC Recommends

The MAC's December 2025 review makes several recommendations, but two stand out for employers:

1. Lower Occupation-Specific Thresholds to the 25th Percentile

This is the headline change. The MAC recommends returning going rates to the 25th percentile of occupational earnings—the level they were at before April 2024.

The committee's reasoning is straightforward: the 25th percentile is sufficient to protect domestic workers from being undercut by lower-paid migrant labour. The median, by contrast, excludes many legitimate hires who would be paid appropriately for their role and experience level.

2. Keep the General Threshold at £41,700

Rather than adjusting the general threshold, the MAC argues this figure should remain unchanged. At £41,700, it already sits at the 30th percentile of all RQF 6+ occupations—high enough to ensure sponsored workers contribute positively to public finances.

The MAC modelled alternative scenarios:

Scenario	General Threshold	Going Rate	Estimated Fiscal Impact	Net Migration Effect
MAC recommended	£41,700	25th percentile	+£660m lifetime benefit	+4,100–4,800
Higher general threshold	£48,400	25th percentile	+£70–140m	-200 to +900
Current system	£41,700	Median (50th)	Baseline	Baseline
Even higher	£52,500	Median	-£520–710m	-2,900 to -5,100

The analysis shows that raising thresholds further would actually cost the exchequer money by excluding workers who contribute more in taxes than they consume in public services.

Why the Current Median Thresholds Create Problems

The MAC doesn't mince words about the April 2024 changes. The report describes the shift to median thresholds as producing "perverse outcomes" that don't align with the government's stated objectives.

Lower-Paid Occupations Get Prioritised Over Higher-Paid Ones

This sounds counterintuitive, but it's how the maths works out. Because the going rate is occupation-specific, a librarian earning £41,700 would qualify for sponsorship while an IT director earning £85,000 might not—if their occupation code's median exceeds their actual salary.

The system inadvertently favours occupations with lower median salaries over those with higher ones, regardless of the individual worker's actual earnings or fiscal contribution.

Regional Employers Are Hit Hardest

Wages vary significantly across the UK, but going rates are set nationally based on UK-wide data that skews toward London salaries.

The MAC's analysis shows the disparity clearly:

Region	% of Domestic Workforce Above Threshold (25th Percentile)	% Above Threshold (Median)
London	80%	64%
South East	72%	52%
North East	55%	35%
Wales	57%	33%

Under the current median thresholds, only a third of the domestic workforce in Wales earns above the required level. That makes sponsorship nearly impossible for many Welsh employers—even for roles that would be perfectly viable under 25th percentile thresholds.

Junior Roles Within Senior Occupation Codes Get Excluded

Occupation codes are broad categories. A single code might cover job titles with vastly different salary expectations.

Take software developers (SOC 2134). The occupation code covers everything from junior developers to senior engineers. The median salary for the code is £54,700—but a junior developer in a regional tech company might realistically earn £35,000–£45,000. Under current rules, that junior role is unsponsorable, even though the salary is perfectly reasonable for the position.

Real-World Example

Consider a Manchester-based SME looking to sponsor a data analyst:

• Occupation code: 2433 (Actuaries, economists and statisticians)

• Going rate (median): £52,100

• Candidate's salary: £44,000

• General threshold: £41,700

The candidate exceeds the general threshold by £2,300, but falls £8,100 short of the going rate. Under current rules: not sponsorable.

Under the MAC's recommended 25th percentile going rate (approximately £38,500): sponsorable.

What Could Change for Employers

If the government accepts the MAC's recommendations, the practical impact for employers could be significant.

More Roles Become Sponsorable at Realistic Salaries

Many occupation codes would see their going rates drop substantially. While exact figures would depend on updated ASHE data, the shift from median to 25th percentile typically represents a 20–35% reduction in the threshold.

Regional Hiring Becomes More Viable

Employers outside London and the South East would find it easier to sponsor workers at salaries that reflect local market rates. This could be particularly significant for sectors like manufacturing, engineering, and tech companies based in the Midlands, North, and devolved nations.

Graduate and New Entrant Pipeline Reopens

The combination of lower going rates and the existing new entrant discount would make it more feasible to sponsor recent graduates and younger workers. This matters for businesses investing in talent development rather than hiring only senior candidates.

Workforce Planning Becomes More Predictable

The MAC also recommends annual updates to salary thresholds on a scheduled basis. This would replace the current pattern of ad-hoc changes, allowing employers to plan recruitment budgets with greater certainty.

If you've ruled out sponsorship based on the current going rates, it may be worth reassessing your options—both under existing rules and in anticipation of potential changes.

Other Key MAC Recommendations

Beyond the headline threshold changes, the MAC made several other recommendations that affect employers:

New Entrant Discount: Extend Beyond Four Years

The current four-year cap on new entrant eligibility creates a cliff edge. Workers must meet full thresholds when they extend or switch roles after four years—often requiring a significant salary jump that doesn't align with normal career progression.

The MAC recommends extending the new entrant period. Under their preferred thresholds (£41,700 general, 25th percentile going rates), a typical graduate would need approximately six years to reach undiscounted levels through normal salary growth.

PhD Discount: Abolish It

Perhaps surprisingly, the MAC recommends removing the salary discount for PhD holders entirely. Their analysis shows PhD holders actually earn a 7% premium over non-PhD workers in RQF 6+ occupations—the opposite of what the discount assumes.

Recent PhD graduates earn more than bachelor's or master's graduates at one, three, and five years post-graduation. There's no evidence of a wage penalty that would justify a discounted threshold.

Annual Updates: Scheduled and Predictable

Rather than implementing threshold changes reactively, the MAC recommends a scheduled annual update using the latest ASHE data. This would give employers advance notice and allow for proper budget planning.

What Happens Next: Timeline and Uncertainty

It's important to be clear: nothing has changed yet.

The MAC's report contains recommendations only. The government must decide whether to accept them, modify them, or reject them entirely.

What We Know

• The MAC's recommendations are historically influential—most are eventually adopted

• There's no confirmed implementation timeline

• If adopted, changes would likely take effect in April 2026 (the standard timing for immigration rule changes)

• The government may cherry-pick recommendations rather than accepting the full package

What We Don't Know

• Whether the government will accept the headline recommendation to lower going rates

• How threshold reductions might interact with other planned changes (earned settlement, English language requirements, ISC increases)

• Whether any transitional arrangements would apply

Political Considerations

Reducing salary thresholds—even occupation-specific ones—could be politically sensitive. The government has consistently messaged that it wants to reduce net migration. Accepting recommendations that the MAC estimates would add 4,100–4,800 to annual net migration may not align with that narrative, even if the fiscal case is compelling.

Practical Steps for Employers

Given the uncertainty, what should employers actually do?

If You're Already a Sponsor

Review roles that failed the going rate test since April 2024. If you had candidates who met the general threshold but fell short of the median going rate, note their details. If thresholds change, you may be able to revisit those hires.

Model both scenarios for upcoming recruitment. When budgeting for sponsored roles, calculate costs under both current thresholds and potential 25th percentile going rates. This helps you understand your exposure either way.

Ensure your compliance is watertight. Whether or not thresholds change, the Home Office continues to scrutinise sponsors. A compliant licence puts you in the best position to act quickly when opportunities arise. Our compliance platform can help you stay audit-ready.

If You're Considering Sponsorship

Don't wait for changes that may not come. The current rules apply until they don't. If you have an immediate hiring need that works under existing thresholds, proceed with it.

Assess which roles could become viable under lower thresholds. If you've assumed sponsorship isn't for you because of going rates, the MAC's recommendations might change that calculation. Understanding your potential position helps you prepare.

Get your sponsor licence application in train. Licence applications take 8–12 weeks under standard processing. If thresholds do drop in April 2026, you'll want to be ready to assign Certificates of Sponsorship immediately—not starting the licence process from scratch.

Check your eligibility for a sponsor licence or book a consultation to discuss your workforce planning.

Conclusion

The MAC's December 2025 salary review offers a data-driven case for making the Skilled Worker route more accessible—particularly for regional employers and SMEs who've been disproportionately affected by median-based going rates.

Key takeaways:

• The MAC recommends lowering occupation-specific thresholds from the median to the 25th percentile, potentially making many more roles sponsorable

• The general threshold would remain at £41,700, maintaining a baseline that ensures fiscal benefit

• Regional employers stand to gain most, as national going rates currently reflect London-weighted salary data

• These are recommendations only—the government hasn't confirmed whether or when changes might happen

The outlook is cautiously optimistic. The MAC's fiscal analysis makes a compelling case, and its recommendations are historically influential. But until the government formally responds, current rules remain in force.

If you're navigating the Skilled Worker route—whether as an existing sponsor or a business considering it for the first time—Imminova can help you understand your options and prepare for what's ahead.

Frequently Asked Questions

What is the minimum salary for a Skilled Worker visa in 2026?

As of early 2026, the minimum salary for most Skilled Worker applications is £41,700 per year or the going rate for your occupation code, whichever is higher. Reduced thresholds apply for new entrants (£33,400), PhD holders, and roles on the Immigration Salary List. The MAC has recommended changes that could lower occupation-specific going rates, but these have not yet been implemented.

Will Skilled Worker salary thresholds decrease?

The MAC has recommended reducing occupation-specific thresholds from the median (50th percentile) back to the 25th percentile. If the government accepts this recommendation, many going rates would decrease significantly. However, the general threshold of £41,700 would remain unchanged under the MAC's proposals. No implementation date has been confirmed.

What's the difference between the general threshold and the going rate?

The general threshold is a fixed minimum (currently £41,700) that applies across all Skilled Worker roles. The going rate is occupation-specific, based on UK salary data for each occupation code. You must pay whichever is higher. For many occupations, the going rate exceeds the general threshold—sometimes significantly.

When will the MAC recommendations be implemented?

There's no confirmed timeline. The government must formally decide whether to accept the MAC's recommendations. If adopted, changes would likely take effect in April 2026, which is the standard timing for immigration rule changes. However, the government could also reject or modify the recommendations.

Can SMEs outside London sponsor Skilled Workers?

Yes, but it can be challenging under current thresholds. Going rates are set nationally using UK-wide salary data that tends to reflect London wages. The MAC has highlighted this regional disadvantage and recommends lower thresholds that would make sponsorship more viable for employers outside London and the South East.

Last updated: February 2026. Immigration rules change frequently—always verify current requirements before making decisions. This article provides general information and does not constitute legal advice.