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MAC Publishes Technical Note on Calculating Skilled Worker Salary

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

By Georgina Griggs - Immigration Barrister
Georgina Griggs

1. Introduction: MAC Technical Note on Skilled Worker Salary Thresholds

On 19 May 2026, the Migration Advisory Committee MAC published a technical note setting out its recommended methodology for calculating salary thresholds within the UK immigration system. The note is particularly relevant to the Skilled Worker route, where employers sponsoring migrant workers must ensure that the salary for the role meets both a general salary threshold and an occupation-specific salary threshold.

The technical note does not itself change the Immigration Rules. The MAC is clear that responsibility for setting salary thresholds rests with the Home Office. However, the note is important because it explains how the MAC considers salary thresholds should be calculated, updated and stabilised over time.

For UK employers, sponsors and Skilled Worker visa applicants, the note provides a useful indication of how future salary requirements may be approached and why some occupation-specific thresholds may change from year to year.

2. General Salary Threshold for Skilled Workers

Under the Skilled Worker route, salary requirements are generally calculated by reference to the higher of:

  • a general salary threshold; and
  • an occupation-specific threshold, often referred to as the “going rate” for the relevant occupation code. 

The MAC recommends calculating the general salary threshold using the latest Annual Survey of Hours and Earnings (ASHE) data published by the Office for National Statistics.

Using ASHE 2025 data, the MAC states that applying its proposed methodology to RQF Level 6 occupations and above would produce a general salary threshold of around £44,000.

However, this is only an illustrative figure. The Home Office will ultimately decide whether to adopt the MAC’s recommendations and what thresholds should apply in practice.

3. Occupation-Specific Salary Thresholds

In addition to the general threshold, the Skilled Worker route also requires workers to be paid occupation-specific salary thresholds linked to individual SOC codes.

In many cases, the relevant “going rate” is linked to the 25th percentile of earnings for that occupation. However, the MAC notes that some ASHE datasets do not publish 25th percentile figures because the sample size is considered too small to produce reliable data.

This creates a practical problem for occupations where earnings data is incomplete.

The technical note therefore sets out two proposed methods for estimating salary thresholds where official figures are unavailable.

4. Method A: Historic Relationship Between Median and 25th Percentile Earnings

The MAC’s preferred approach, where possible, is to use published ASHE data from previous years to calculate the historic relationship between median earnings and 25th percentile earnings for the occupation.

In simple terms, this involves:

  • looking at the previous three years of ASHE data;
  • identifying years in which both median and 25th percentile earnings were published;
  • calculating the ratio between the median and 25th percentile in those years;
  • averaging that ratio; and
  • applying the average ratio to the latest published median earnings figure.

The MAC uses Aerospace Engineers as an example. Although 2025 ASHE data did not include a published 25th percentile figure, historical data allowed the MAC to estimate a salary threshold of approximately £45,600.

5. Method B: Relationship Between Occupational Groups

Where Method A cannot be used, the MAC recommends a second approach based on the relationship between earnings in a specific SOC and the wider occupational group to which it belongs. 

This method involves assessing whether the occupation typically attracts a salary premium or discount compared with related professions, before applying that relationship to published earnings data for the broader group. 

The MAC gives the example of Probation Officers – SOC 2462. For Probation Officers, neither the 25th percentile nor the median was published in the 2025 ASHE tables. The MAC therefore used underlying ASHE data to compare Probation Officers with the broader minor occupation group of Welfare Professionals. This resulted in an estimated earnings premium, which was applied to the published 25th percentile figure for Welfare Professionals. The resulting estimated threshold was £33,600, rounded to the nearest £100.

The MAC acknowledges that these estimates are not exact and may involve a degree of statistical uncertainty, particularly for smaller occupations.

6. Smoothing Occupation-Specific Thresholds

One of the more significant aspects of the technical note is the MAC’s proposal to “smooth” occupation-specific salary thresholds over time.

The MAC notes that salary thresholds should be updated annually in line with the latest wage data. However, annual updates can lead to volatility, particularly where occupation-level data is based on smaller sample sizes. To reduce the risk of sharp movements in salary requirements from one year to the next, the MAC recommends a smoothing method for occupation-specific thresholds.

The proposed smoothing method gives weight to the current year and the two previous years:

  • 50% weight to the current year;
  • 30% weight to the previous year; and
  • 20% weight to the year before that.

Earlier salary figures would first be adjusted to current wage levels before the calculation is applied. According to the MAC, this approach would help create more stable and predictable salary thresholds for sponsors and visa applicants.

The MAC gives the example of IT Business Analysts, Architects and Systems Designers – SOC 2133. Using 25th percentile earnings data for 2023, 2024 and 2025, and uprating the earlier years to 2025 wage levels, the MAC calculates a smoothed 2025 occupation-specific threshold of £45,400, rounded to the nearest £100.

7. Why the MAC’s Technical Note Matters for Sponsors

Although the technical note does not itself amend the Skilled Worker rules, it is relevant to sponsors and employers because it shows how salary thresholds may be calculated in future.

In particular, the note highlights that:

  • salary thresholds may continue to be updated annually;
  • occupation-specific thresholds may depend on ASHE data at SOC code level;
  • some thresholds may be estimated where published data is incomplete;
  • smoothing may reduce sudden year-on-year changes; and
  • employers may need to monitor both general and occupation-specific thresholds when planning recruitment.

For sponsor licence holders, salary compliance remains a central part of Skilled Worker sponsorship. Sponsors must ensure that sponsored workers are paid at or above the applicable salary threshold and must also comply with wider sponsor duties, including record-keeping and reporting obligations.

8. What Should Employers Do Now?

Employers who sponsor Skilled Workers, or who intend to apply for a sponsor licence, should keep salary planning under review. In particular, employers may wish to:

  • identify the correct SOC code for each sponsored role;
  • check whether the role is subject to a general threshold, an occupation-specific threshold or a national pay scale;
  • budget for possible annual changes to salary requirements;
  • review salaries before assigning Certificates of Sponsorship; and
  • seek advice where a role sits close to the relevant salary threshold.

The MAC’s technical note also underlines the importance of accurate SOC code selection. An incorrect SOC code may lead to the wrong salary threshold being applied, which can create difficulties for both the employer and the visa applicant.

9. Conclusion

The MAC’s 19 May 2026 technical note provides a detailed explanation of how Skilled Worker salary thresholds could be calculated using ASHE earnings data. It recommends an annual update mechanism, introduces a smoothing method for occupation-specific thresholds and explains how thresholds may be estimated where published earnings data is incomplete.

The note does not, by itself, change the Immigration Rules. However, it provides an important indication of the methodology that may inform future salary threshold setting. Employers and sponsor licence holders should therefore continue to monitor developments carefully and ensure that salary compliance is built into their recruitment and sponsorship processes.

10. Contact Our Immigration Barristers

For expert advice on Skilled Worker salary thresholds, sponsor licence compliance, Certificates of Sponsorship or business immigration planning, contact our immigration barristers on 0203 617 9173 or complete our enquiry form.

Our barristers advise employers and individuals on the Skilled Worker route, including salary requirements, SOC code selection, sponsor licence applications and compliance with sponsor duties.

11. Frequently Asked Questions: Skilled Worker Salary Thresholds and the MAC Technical Note

Does the MAC’s technical note change Skilled Worker salary requirements?

No. The MAC’s technical note does not itself change the Immigration Rules. The Home Office is responsible for deciding which salary thresholds are adopted.

What is the Skilled Worker general salary threshold?

The general salary threshold is one of the salary requirements that may apply under the Skilled Worker route. This level is dependent on which option a Skilled Worker is relying on to meet the salary requirements. 

What is an occupation-specific salary threshold?

An occupation-specific salary threshold is the salary level linked to a particular SOC code. It is often referred to as the “going rate” for the occupation.

Why might some occupation-specific salary thresholds be estimated?

Some occupation-level ASHE data may not be published where sample sizes are too small. The MAC’s technical note explains methods for estimating thresholds where published data is incomplete.

What is smoothing in the MAC’s salary threshold methodology?

Smoothing is a method designed to reduce sharp year-on-year changes in occupation-specific salary thresholds by using weighted data from the current year and the two previous years.

Why is SOC code selection important for Skilled Worker sponsorship?

The SOC code helps determine the relevant occupation-specific salary threshold. Selecting the wrong SOC code may result in the wrong salary requirement being applied.

What should sponsors do before assigning a Certificate of Sponsorship?

Sponsors should check the correct SOC code, identify the relevant salary threshold, review the proposed salary and consider whether advice is needed where the role is close to the applicable threshold.

Please note that the information provided in this article is for general guidance only and is based on the immigration rules and policies in force at the date of publication. Immigration law and Home Office policy can change frequently, and requirements may vary depending on individual circumstances. Legal advice should always be sought in relation to your specific situation.

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