News Briefing

MAC Publishes Technical Note on Calculating Skilled Worker Salary Thresholds for Sponsors and Employers

May 25, 2026News Briefingimmigrationbarrister.co.uk

The Migration Advisory Committee (MAC) released a technical note on 19 May 2026 outlining how salary thresholds for the UK Skilled Worker route could be calculated. While the note does not amend the Immigration Rules, it clarifies the methodology the Home Office may adopt for both the general salary floor and occupation‑specific “going rates”.

General salary threshold

  • The MAC proposes using the latest Annual Survey of Hours and Earnings (ASHE) data from the Office for National Statistics.
  • Applying its methodology to occupations at RQF Level 6 and above, based on ASHE 2025, yields an illustrative general threshold of ≈ £44,000.
  • The Home Office will decide whether to adopt this figure or set a different level.

Occupation‑specific thresholds

Skilled Worker applicants must also meet the “going rate” linked to the relevant Standard Occupational Classification (SOC) code. The MAC notes that ASHE does not always publish the 25th‑percentile earnings needed for these thresholds, especially for occupations with small sample sizes. Two estimation methods are proposed.

Method A – Historical median‑to‑25th‑percentile ratio

  1. Review the previous three years of ASHE data.
  2. Identify years where both median and 25th‑percentile earnings are published.
  3. Calculate the ratio = median ÷ 25th‑percentile for each year.
  4. Average the ratios and apply the result to the latest median earnings figure.

Example: Aerospace Engineers lack a 25th‑percentile figure in the 2025 ASHE tables. Using historic ratios, the MAC estimates a threshold of ≈ £45,600.

Method B – Relationship to a broader occupational group

When Method A is not feasible, the MAC suggests comparing the target occupation with its wider occupational group to determine a salary premium or discount, then applying that factor to the group’s published 25th‑percentile earnings.

Example: Probation Officers (SOC 2462) have no published median or 25th‑percentile data for 2025. By analysing the broader “Welfare Professionals” group, the MAC derives an estimated premium and calculates a threshold of £33,600 (rounded to the nearest £100).

Smoothing occupation‑specific thresholds

Annual updates based on raw ASHE figures can cause volatility, particularly for occupations with limited data. The MAC recommends a weighted smoothing approach:

Weight Year
50 % Current year
30 % Previous year
20 % Two years prior

Earlier years are first uprated to current wage levels before applying the weights.

Example: For IT Business Analysts, Architects and Systems Designers (SOC 2133), using 25th‑percentile data from 2023‑2025 and uprating earlier figures to 2025 levels produces a smoothed threshold of £45,400 (rounded to the nearest £100).

Practical steps for employers and sponsors

  • Identify the correct SOC code for each role to ensure the appropriate occupation‑specific threshold is applied.
  • Determine whether the role is subject to the general threshold, an occupation‑specific threshold, or a national pay scale.
  • Budget for possible annual adjustments to salary requirements, especially where smoothing may moderate but not eliminate changes.
  • Review salaries before issuing Certificates of Sponsorship to confirm compliance with the applicable threshold.
  • Seek specialist advice when a role’s proposed salary is close to the threshold or when data gaps require estimation.

Accurate SOC code selection is critical; an incorrect code can lead to the wrong salary floor being applied, jeopardising both the sponsor’s compliance and the applicant’s visa eligibility.

Key take‑aways

  • The MAC’s technical note provides a transparent framework for calculating both general and occupation‑specific salary thresholds, using ASHE data and, where necessary, estimation methods.
  • Smoothing aims to reduce abrupt year‑on‑year shifts, applying a 50/30/20 weighting across the current and two preceding years.
  • Employers and sponsor licence holders should monitor SOC codes, salary thresholds, and potential annual updates as part of their recruitment and sponsorship planning.

The information reflects the immigration rules and policies in force at the date of publication and may change; professional legal advice should be obtained for individual cases.

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