Rising salary thresholds for Skilled Worker visas: what employers need to budget for in 2026

UK Skilled Worker salary thresholds are expected to rise in 2026. Find out what this means for recruitment, budgeting and visa planning.

Increasing salary thresholds

The Statement of Changes to the Immigration Rules published on 1 July 2025 introduced substantial changes to the Skilled Worker visa route, including increases to the minimum skill threshold to RQF 6, and the minimum salary threshold to £41,700.

These changes took effect from 22 July 2025, meaning that (unless a discount applies in limited circumstances) new Skilled Worker visa applicants must now be paid a minimum salary of £41,700, or the standard going rate for their occupation code – whichever is higher. This represents an 8% percent increase from the previous minimum threshold of £38,700 – a significant additional cost for employers to cover. The aim of these changes is to encourage employers to seek talent from the existing labour pool within the UK.

There are limited circumstances in which a Skilled Worker can be sponsored at a salary below £41,700. These apply where the applicant:

• Is under 26, studying or a recent graduate, or in professional training;
• Has a STEM PhD level qualification that is relevant to their job;
• Has a postdoctoral position in science or higher education.

In such cases, applicants may be paid a lower minimum salary at a discounted rate (between 70% – 90%), subject to meeting certain criteria.

Determining which option and salary table applies under the rules has become a minefield for employers looking to sponsor workers. The complexity is primarily the result of significant sets of changes implemented over a relatively short period of time, leading to different combinations of transitional arrangements needed to protect the position of those already in the UK and seeking to extend their visas.

Costs to consider for employers

Employers are required to cover certain associated costs of the Skilled Worker application, and passing these onto the applicant is a breach of the employer’s sponsorship duties.

Besides the additional minimum salary, employers should budget for the following costs when sponsoring a Skilled Worker:

• Sponsor licence application fee;
• Certificate of Sponsorship (CoS) assignment fee;
• Immigration Skills Charge.

The sponsor licence is required for an employer to sponsor workers from overseas. The fee for this licence varies depending on whether the organisation is considered small or charitable, for which the fee is £574, or medium/large, for which it is £1,579. This is an increase from £536 and £1,476 pounds respectively, introduced since 2025.

The CoS is an electronic document, which contains key details of the applicant’s employment and must be assigned to the employee in order for them to apply for a visa. The CoS fee more than doubled on 9 April 2025, with employers now being required to pay £525 to assign a certificate to the applicant (the cost previously had been £239).

The Immigration Skills Charge is a fee that must be covered by employers who want to sponsor foreign workers. The aim of this levy is to encourage employers to seek UK-based talent, with the proceeds used to fund training programmes in the UK. The total fee to be paid by the employer will vary, depending on the size of the organisation and the duration of the visa. Currently, small and charitable organisations must pay £364 per year of the visa’s duration, and medium/large organisations must pay £1,000. This fee must be paid in full when the CoS is assigned to the worker, however, partial/full refunds will be issued in cases where the worker is refused a visa or leaves their job before the end date stated on their CoS.

Employers budgeting for 2026 should be aware that, effective from 16 December 2025, the Immigration Skills Charge will increase by 32% for medium/large organisations to £1,320 per year, and to £480 per year for small/charitable organisations.

The Skilled Worker visa application fee for both in-country and out-of-country applications also increased on 9 April 2025. The application fee is dependent on whether the duration of the visa being sought is up to or over three years:

• Up to 3 years (out of country) increased from £719 to £769;
• Over 3 years (out of country) increased from £1,420 to £1,519;
• Up to 3 years (in country) increased from £827 to £885;
• Over 3 years (in country) increased from £1,636 to £1,751.

Whilst there is no set date for a further increase to the salary thresholds, the Migration Advisory Committee (MAC) is due to publish their final recommendations on the Temporary Shortage List in 2026 (a list of sub-RQF 6 jobs that are available for sponsorship), which may include updated salary thresholds for those jobs. The Home Office also updates going rates regularly according to the ASHE data (the Office for National Statistics’ Annual Survey of Hours and Earnings), to ensure that they are in line with average wages.

Employers looking to sponsor overseas workers are advised to seek legal advice to ensure that they are aware of all the fees and obligations associated with sponsoring a Skilled Worker.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on all UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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