Introduction
Since the UK Home Office implemented higher salary thresholds for the Skilled Worker visa route in April 2024, employers have faced growing challenges in sourcing and sponsoring international talent. However, several discounted salary options remain available under UK immigration rules—offering strategic avenues for employers to navigate rising costs and skill shortages.
This article outlines these alternative routes, highlights who qualifies, and explains how businesses can benefit from available salary concessions—especially in the lead-up to further immigration changes anticipated in late 2025.
1. Overview: UK Skilled Worker Salary Requirements
As of April 2024, the standard minimum salary threshold for Skilled Worker visa applicants is £38,700 or the occupation code median rate, whichever is higher. This base rate applies to most applicants, unless a discounted salary provision can be used.
Understanding the structure of these discounts is critical for employers wishing to extend competitive offers while remaining compliant with UK visa sponsorship rules.
2. Discounted Salary Options Available to Employers
The Home Office currently allows reduced salary thresholds under specific conditions to attract particular categories of workers. These options are not automatic and must be clearly justified during the visa application process.
A. PhD Holders
3. Transitional Provisions for Pre-2024 Visa Holders
Employees who secured a Skilled Worker visa before 4 April 2024 can benefit from transitional salary provisions until 4 April 2030. These allow lower salary thresholds for job changes or extensions during this period.
4. Anticipated Policy Changes and MAC Review
The UK Government’s White Paper confirms its intention to overhaul parts of the Skilled Worker framework. Specifically:
Conclusion: Strategic Use of Discounted Rates
UK employers navigating today’s tighter immigration environment should assess the full range of sponsorship options before ruling out international talent due to salary constraints. The discounted routes provide essential flexibility and may be critical in filling skill gaps efficiently.
Pros and Cons Summary
Employers that stay informed and apply the available discounts wisely will be better positioned to remain competitive in a challenging recruitment landscape.
Since the UK Home Office implemented higher salary thresholds for the Skilled Worker visa route in April 2024, employers have faced growing challenges in sourcing and sponsoring international talent. However, several discounted salary options remain available under UK immigration rules—offering strategic avenues for employers to navigate rising costs and skill shortages.
This article outlines these alternative routes, highlights who qualifies, and explains how businesses can benefit from available salary concessions—especially in the lead-up to further immigration changes anticipated in late 2025.
1. Overview: UK Skilled Worker Salary Requirements
As of April 2024, the standard minimum salary threshold for Skilled Worker visa applicants is £38,700 or the occupation code median rate, whichever is higher. This base rate applies to most applicants, unless a discounted salary provision can be used.
Understanding the structure of these discounts is critical for employers wishing to extend competitive offers while remaining compliant with UK visa sponsorship rules.
2. Discounted Salary Options Available to Employers
The Home Office currently allows reduced salary thresholds under specific conditions to attract particular categories of workers. These options are not automatic and must be clearly justified during the visa application process.
A. PhD Holders
- Applicants with a PhD related to their job can benefit from a salary reduction.
- STEM PhD holders are eligible for a larger discount compared to non-STEM fields.
- This route supports the UK’s agenda to boost innovation and research-led industries.
- Previously known as the Shortage Occupation List, the ISL includes specific roles eligible for salary discounts.
- The number of included roles has significantly declined, with sectors like engineering and IT now largely excluded.
- The White Paper proposes replacing the ISL with a Temporary Shortage List, offering time-limited and conditional sponsorships for roles below graduate level.
- A cost-effective path for hiring early-career professionals.
- Employers may pay between 70% and 90% of the usual salary for up to four years.
- This period includes any time spent under a Graduate visa.
- After four years, the individual must meet the general threshold or qualify under another discount scheme.
3. Transitional Provisions for Pre-2024 Visa Holders
Employees who secured a Skilled Worker visa before 4 April 2024 can benefit from transitional salary provisions until 4 April 2030. These allow lower salary thresholds for job changes or extensions during this period.
- The applicable transitional minimum is £29,000 or the 25th percentile of the going rate, whichever is higher.
- This applies unless a separate discounted category (PhD, ISL, or new entrant) offers a lower rate.
- These rules protect the interests of existing migrant workers affected by new salary policies.
4. Anticipated Policy Changes and MAC Review
The UK Government’s White Paper confirms its intention to overhaul parts of the Skilled Worker framework. Specifically:
- The ISL is likely to be abolished and replaced by a Temporary Shortage List.
- The Migration Advisory Committee (MAC) will review salary thresholds and discount models across the Skilled Worker scheme.
- It remains uncertain whether the PhD and new entrant categories will be revised or retained after the MAC completes its review later in 2025.
Conclusion: Strategic Use of Discounted Rates
UK employers navigating today’s tighter immigration environment should assess the full range of sponsorship options before ruling out international talent due to salary constraints. The discounted routes provide essential flexibility and may be critical in filling skill gaps efficiently.
Pros and Cons Summary
| Pros | Cons |
|---|---|
| Reduced costs: Sponsors can offer salaries 70–90% of the standard rate. | Not universal: Discounts apply only under specific conditions. |
| Attract niche talent: Especially valuable for hiring PhD-level or early-career professionals. | Complex eligibility rules: Misapplication can result in non-compliance. |
| Transitional rules offer breathing space for long-term staff | Frequent policy changes: Employers must monitor upcoming MAC review. |
| Supports skill-shortage sectors (e.g. via ISL/temporary list) | ISL reduction limits usage in tech, engineering, etc. |
