What the end of the Immigration Salary List means for UK employers?

Jun 04 2025

UK Immigration

With an aim towards regaining control over the immigration system, the UK government published the Immigration White Paper in May 2025, outlining significant changes to how British employers can bring in workers from overseas.

What is the Immigration Salary List (ISL) and why has it been scrapped?

The ISL previously allowed persons employed under the Skilled Worker route to be paid below the standard “going rate” for their occupation, provided the role was listed as a shortage occupation. Now the Migration Advisory Committee (MAC) will be thoroughly reviewing the salary requirements (including discounts) to ensure that overseas recruitment is not used as a cheaper alternative to fair pay.

What does it mean for UK employers?

The ISL is being replaced by the Temporary Shortage List (TSL). Under the proposed TSL system, only roles that meet a higher evidential threshold of labour shortage will qualify for temporary concessions. In addition to endorsement by the MAC, employers must demonstrate a strategic workforce plan, investment in training, and credible attempts to recruit domestically.

Importantly, certain roles on the TSL may be subject to additional restrictions, including limitations on the right to bring in dependants.

Generally, it is proposed that the salary requirements (“going rates”) for Skilled Worker occupations will be increased, although precise figures have yet to be published . The new rules are being implemented to encourage employers who would previously recruit from overseas to reconsider their part in increasing recruitment from the domestic workforce and to stop the potential exploitation of their overseas workers.

Coupled with this is the plan to raise the skill thresholds for the Skilled Worker route. The minimum skill level will increase from RQF Level 3 (A-level standard) to RQF Level 6 (degree level), effectively excluding many roles in such sectors as hospitality, logistics, and construction, which have historically relied on access to international labour. Salary thresholds are also expected to rise further. Employers should anticipate the need to offer more competitive remuneration packages in order to meet these prospective heightened requirements.

In addition to removing the ISL, and therefore an employer’s ability to discount a Skilled Worker employee’s salary, further cost pressures will be encountered as a  proposal was made to increase the Immigration Skills Charge (ISC) by 32 per cent. This means that large sponsors will see the charge increase from £1,000 to £1,320 per year per sponsored worker, while small and charitable sponsors will be paying £480 instead of £364. These additional costs must be considered in future workforce and financial planning, particularly for small and medium-sized enterprises operating on tighter margins.

The proposed abolition of the ISL marks a significant shift in the UK’s immigration strategy. It reflects the Government’s desire to reduce net migration and prioritise investment in the domestic workforce. However, it also places a greater burden on employers who will now have to navigate a more complex and restrictive sponsorship landscape.

As immigration solicitors, we recommend that all employers with a current sponsor licence or plans to sponsor overseas workers undertake a full review of their recruitment models and ensure they are prepared for these impending changes.

Our team is available to provide tailored advice on how your organisation can remain compliant and competitive within the evolving immigration system.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on 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 XFacebookInstagram, or LinkedIn to stay-up-to-date.

Updated: 4 June 2025

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.

©Gherson 2025

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