MAC Salary Review: What the Recommendations Could Mean for UK Employers

The Migration Advisory Committee (MAC) has been actively reviewing the salary threshold framework that underpins the UK’s sponsored work routes, and its recommendations carry significant implications for businesses that rely on international talent. With the MAC’s review of the Skilled Worker route salary thresholds published in December 2025, and a further publication on sponsor route salary thresholds issued on 3 June 2026, employers now have greater insight into the direction of policy travel, even if the government is yet to respond formally to all of the recommendations.

What the MAC Has Proposed

The MAC’s December 2025 review of salary requirements examined the current threshold structure across the Skilled Worker route and made a number of recommendations that, if implemented, could represent a meaningful shift for some employers. Most notably, the MAC proposed a return to setting occupation-specific Skilled Worker salary thresholds by reference to 25th percentile salary data for each occupation code, rather than the higher median data that has underpinned recent threshold increases. If adopted, this change would reduce the minimum salary required to sponsor workers in a number of occupations, potentially easing cost pressures for employers in sectors where salaries tend to sit below the median.

The MAC also made recommendations regarding the new entrant discount and the alignment of thresholds across different sponsored work routes. These recommendations, taken together, suggest a recognition by the MAC that the current threshold structure may in some cases be creating barriers to the recruitment of talent that the UK economy genuinely needs, including in shortage occupations and within the government’s industrial strategy sectors.

The Temporary Shortage List

Alongside the salary review, the MAC has published the first substantive report on the Temporary Shortage List (TSL), a new mechanism introduced in mid-2025 to address short-term workforce gaps in occupations that support the UK’s critical infrastructure and industrial strategy. The Stage 1 report sets out how the TSL is intended to work and identifies a shortlist of mid-skilled roles that will proceed to Stage 2 for further analysis. Final recommendations on which occupations should be included are expected around July 2026.

The TSL represents a potentially important development for employers in sectors such as construction, engineering, logistics, healthcare and manufacturing, where mid-skilled roles have historically been harder to fill through the Skilled Worker route. Employers in these sectors should monitor the Stage 2 process closely and consider making representations to ensure that their workforce needs are reflected in the final recommendations.

What This Means in Practice

For most employers, the immediate practical position remains governed by the current Immigration Rules, and the MAC’s recommendations do not take effect unless and until the government formally adopts them. However, the direction of travel matters. Employers that have been deterred from sponsoring workers in certain roles because of high salary thresholds, or that have structured their recruitment around the current threshold framework, should keep a close watch on the government’s response, which is expected later in 2026.

There are also broader considerations for businesses with a long-term global mobility strategy. The ongoing consultations on settlement reform, which propose more complex and longer pathways to Indefinite Leave to Remain, may affect the attractiveness of the UK as a destination for internationally mobile talent. Businesses should factor these potential changes into their workforce planning and, where appropriate, ensure that sponsored workers understand how reform proposals might affect their long-term immigration options.

Magrath Sheldrick’s immigration team advises businesses of all sizes on the Skilled Worker route, sponsor licence compliance and global mobility strategy. If you would like to discuss how the MAC’s recommendations, or the evolving immigration landscape more broadly, affects your business, please get in touch.