The Budget 2026 document says the government will change minimum salary requirements for sponsored workers so that visa criteria better reflect labour market conditions across the UK. From spring 2027, occupation-specific minimum salary thresholds for sponsored workers will fall from the median wage for the occupation to the 25th percentile of wages. Thresholds will then be updated annually, using the latest wage data, with the first update based on 2026 wage data.

Lower thresholds, updated every year

The government presents the change as part of making the visa system work for all regions, not only London and the South East. Specialist immigration firms note that lower thresholds should widen the range of roles that can realistically be sponsored, particularly outside the capital, where median pay is lower. That could matter for employers in sectors that have struggled to meet the current thresholds, although the general salary floor and the going rate for each role will still apply alongside the new occupation-specific figures.

Discounts simplified, PhD discount removed

The same package simplifies salary discounts for new entrants. Discounts for students, recent graduates and those in professional training will be merged into a single discount, and the separate PhD discount will be removed. Employers should therefore not assume that a PhD alone will continue to lower the salary requirement. As with the curtailment change announced in the same Budget, these salary measures are planned for spring 2027 and will need detailed Immigration Rules changes before they take effect, so sponsors should wait for the final rules before changing recruitment plans. Check the official GOV.UK page before acting, as immigration rules change.

Sources: GOV.UK Budget 2026, Burges Salmon.