Important Updates
Important Updates
December 23, 2025 | ZimbabweZimbabwe: New Indigenization Regulations in Effect
December 23, 2025 | United StatesFranceinfo: États-Unis : bientôt une inspection au peigne fin des réseaux sociaux avant d'entrer sur le territoire
December 23, 2025 | CanadaToronto Star: Canada Wants to Bring in 1,000 Researchers and Skilled Workers. Here’s What It Will Take
December 23, 2025 | United StatesUnited States: DHS Issues Final Rule to Replace Random H-1B Cap Lottery with Wage-Level-Based Weighted System for H-1B Cap Allocation in Time for Implementation in Early 2026
December 23, 2025 | United StatesUnited States: USCIS Suspends Approvals of Pending Diversity Visa Adjustment Applications While Security Reviews Are Conducted
December 23, 2025 | ZimbabweZimbabwe: New Indigenization Regulations in Effect
December 23, 2025 | United StatesFranceinfo: États-Unis : bientôt une inspection au peigne fin des réseaux sociaux avant d'entrer sur le territoire
December 23, 2025 | CanadaToronto Star: Canada Wants to Bring in 1,000 Researchers and Skilled Workers. Here’s What It Will Take
December 23, 2025 | United StatesUnited States: DHS Issues Final Rule to Replace Random H-1B Cap Lottery with Wage-Level-Based Weighted System for H-1B Cap Allocation in Time for Implementation in Early 2026
December 23, 2025 | United StatesUnited States: USCIS Suspends Approvals of Pending Diversity Visa Adjustment Applications While Security Reviews Are Conducted
December 23, 2025 | ZimbabweZimbabwe: New Indigenization Regulations in Effect
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationFragomen Consulting EuropeImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Fragomen Consulting Europe
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

How UK Employers Can Use Discounted Salary Rates to Sponsor Skilled Workers

June 17, 2025

How UK Employers Can Use Discounted Salary Rates to Sponsor Skilled Workers

Country / Territory

  • United KingdomUnited Kingdom

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Ali Ali , Charlotte Roberts

More than a year has passed since the UK Home Office raised the minimum salary rates for the Skilled Worker visa route.

While last year’s Fragomen blog focused on the discounted rates available for new entrants, this blog explores additional options provided by the Home Office that allow employers to pay a reduced minimum salary rate. These options are not applicable in all cases, but understanding the available options is crucial for employers to access a broader talent pool.

This is even more critical considering the UK Government’s Immigration White Paper, which outlines significant changes to the UK legal migration framework, including suggested further minimum salary increases for the Skilled Worker visa route. Although final details are yet to be confirmed, further clarification is anticipated in the third or fourth quarter of the year.

What is the General Skilled Worker Salary Requirement?

To recap, since April 2024, the general salary requirements for new hires under the Skilled Worker visa route is £38,700 or the occupation code median rate, whichever is higher.

This is the foundational rate and is often quoted in media headlines.

For some skilled employees, this is the minimum salary they must be paid if they do not meet the criteria for any discounted salary rates. Employers should verify salary eligibility carefully before making offers to potential employees who may require sponsorship.

What Discounted Salary Options Are Available?

The Home Office provides several discounted salary rates to address specific sector challenges and business needs. Throughout the past year, sponsors have increasingly used these discounted rates to attract talent and mitigate skills shortages. The following are the available options:

      • PhD Holders: Sponsors employing individuals who hold a PhD relevant to their job role can benefit from a discounted salary rate. This option supports the UK’s objective of attracting highly educated and skilled professionals. The discount varies depending on the field of study, with greater reductions available to those holding a Science, Technology, Engineering and Mathematics (STEM) PhD.
      • Immigration Salary List (ISL): Formerly known as the Shortage Occupation List, the number of occupation codes listed in the ISL was significantly reduced last year. Most sectors, including engineering and IT, have either negligible or zero codes listed on the ISL. The roles that are on the list can qualify for discounted salary rates, allowing employers greater flexibility to sponsor individuals in roles that are in shortage in the UK. The White Paper suggests abolishing the ISL and replacing it with a Temporary Shortage List for roles below graduate level. This new list proposed by the Home Office will be time-limited and offer conditional sponsorship for roles with workforce shortages in the UK.
      • New Entrants: An attractive option for employers, which is typically used for individuals in the early stages of their career. Those who qualify may be paid a lower salary for up to four years (any time spent on the Graduate visa will be included within this limit). After this period, the general salary rate applies, unless they qualify for another discounted option. Read Fragomen’s blog on New Entrants and the UK immigration landscape published last year for a more detailed overview of the subject.

For some of the above options, employers can pay between 70% and 90% of the standard going rate, subject to meeting certain provisions.

What Are the Transitional Provisions?

Salary thresholds vary depending on when the sponsored worker’s Skilled Worker visa was secured. Those who received their visas before 4 April 2024 and who continue to have valid leave, benefit from transitional provisions. These provisions allow for a lower salary rate when extending or switching to a new role or employer, until 4 April 2030 (including those applying for Settlement).

In such cases, the applicable threshold is generally £29,000 or the 25th percentile of the going rate for the role, whichever is higher, unless one of the three discounted options above applies, allowing for further reductions. These transitional provisions were introduced to safeguard the positions of those who were already contributing to the UK workforce before the changes took effect.

Looking Ahead

According to the White Paper, the Home Office “will ask the Migration Advisory Committee (MAC) to undertake a thorough review of salary requirements (including discounts).” While the Home Office has expressed an explicit intention to abolish the ISL, it remains to be seen whether revisions will also affect the new entrant and PhD options (if any). Further policy developments are expected as and when the MAC undertakes its review.

How Fragomen Can Help

Fragomen provides comprehensive assessments on eligibility under the Skilled Worker route, including the minimum salary required for specific scenarios. The firm also offers bespoke assistance or training on the discounted salary options, ensuring employers are well equipped to navigate the increasingly challenging UK immigration landscape and attract skilled talent to their business.   

Need to Know More?

For further information or questions related to the UK immigration rules, please contact Associates Ali Ali at [email protected] and Charlotte Roberts at [email protected].

This blog was published on 17 June 2025, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram. 

Country / Territory

  • United KingdomUnited Kingdom

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Ali Ali

Ali Ali

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9336

Photo of Charlotte Roberts

Charlotte Roberts

Associate

London, United Kingdom

Email

[email protected]

T:+44 20 7090 9190

Related insights

  • “New Entrants” and the UK Immigration Landscape

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Franceinfo: États-Unis : bientôt une inspection au peigne fin des réseaux sociaux avant d'entrer sur le territoire

Partner K. Edward Raleigh commented on proposed changes to US entry requirements.

Learn more

Video

The Schengen C Visa: What Non-EU Nationals Need to Know About 90/180-Day Travel

Business Immigration Consultant Marisa Gizzi from Fragomen explains everything about the Schengen C Visa: who needs it, how to apply and key travel tips to stay compliant in the Schengen Area. 

Learn more

Media mentions

Toronto Star: Canada Wants to Bring in 1,000 Researchers and Skilled Workers. Here’s What It Will Take

Partner Rick Lamanna discussed Canada’s $1B plan to attract global researchers.

Learn more

Blog post

Tier 1 Investor Visa Extension Deadline | February 2026 UK Update

Manager Alex Hood, Senior Associate Kimberley Ong and Immigration Paralegal Ataa Rajput explain the final extension and settlement deadlines for UK Tier 1 Investor visa holders and outline who can still qualify and why early action is essential.

Learn more

Media mentions

Business Insider: New H-1B Visa Rules Upgrade Some Lottery Applicants — and Squeeze Out Others

Partner K. Edward Raleigh on how the $100K H‑1B fee factors into hiring international talent.

Learn more

Media mentions

China Daily: HK Softens Imbalance in Wealth Migration

Managing Director Magdalene Tennant and Director Kitty Lo highlight Hong Kong as an attractive destination for global investors.

Learn more

Blog post

Countdown to the Italy Winter Games 2026: What You Need to Know Before Travelling

IPM Business Process Manager Hazel Yaman outlines key visa, work authorisation and border considerations for athletes, media, event staff and spectators travelling to Italy for the Milan–Cortina 2026 Olympic and Paralympic Winter Games, including the impact of the EU’s new Entry/Exit System.

Learn more

Media mentions

Gulf News: Moving to the UAE from the UK? Here’s Your Visa Guide for Jobs, Business and Golden Visas

Corporate Services Director Elena Caron highlights key considerations for UK nationals moving to the UAE.

Learn more

Media mentions

People Management: The UK’s Earned Settlement Proposal: What HR Leaders Need to Know

Associates Charlotte Roberts and Karina Casey highlight how the UK’s earned settlement proposal may influence global talent and HR planning.

Learn more

Media mentions

Konfederacja Lewiatan: Procedura legalizacji zatrudnienia cudzoziemców w Polsce po zmianach w 2025 r.

Poland Immigration Strategy Director Tomasz Rogala contributes to Konfederacja Lewiatan’s analysis on 2025 changes to work permits and foreign employment in Poland.

Learn more

Blog post

F and J Visa Updates: Social Media Checks Begin as DHS Proposes New Limits

Associate Alejandro Hernandez analyses new F and J visa screening practices, including social media vetting by US consulates and proposed DHS changes that could significantly alter admission periods for students and exchange visitors.

Learn more

Awards

Fragomen Ireland Awarded the KeepWell Mark by IBEC

Fragomen Ireland is accredited with IBEC’s KeepWell Mark™, recognizing the practice’s commitment to wellbeing, inclusion and responsible business.

Learn more

Media mentions

Franceinfo: États-Unis : bientôt une inspection au peigne fin des réseaux sociaux avant d'entrer sur le territoire

Partner K. Edward Raleigh commented on proposed changes to US entry requirements.

Learn more

Video

The Schengen C Visa: What Non-EU Nationals Need to Know About 90/180-Day Travel

Business Immigration Consultant Marisa Gizzi from Fragomen explains everything about the Schengen C Visa: who needs it, how to apply and key travel tips to stay compliant in the Schengen Area. 

Learn more

Media mentions

Toronto Star: Canada Wants to Bring in 1,000 Researchers and Skilled Workers. Here’s What It Will Take

Partner Rick Lamanna discussed Canada’s $1B plan to attract global researchers.

Learn more

Blog post

Tier 1 Investor Visa Extension Deadline | February 2026 UK Update

Manager Alex Hood, Senior Associate Kimberley Ong and Immigration Paralegal Ataa Rajput explain the final extension and settlement deadlines for UK Tier 1 Investor visa holders and outline who can still qualify and why early action is essential.

Learn more

Media mentions

Business Insider: New H-1B Visa Rules Upgrade Some Lottery Applicants — and Squeeze Out Others

Partner K. Edward Raleigh on how the $100K H‑1B fee factors into hiring international talent.

Learn more

Media mentions

China Daily: HK Softens Imbalance in Wealth Migration

Managing Director Magdalene Tennant and Director Kitty Lo highlight Hong Kong as an attractive destination for global investors.

Learn more

Blog post

Countdown to the Italy Winter Games 2026: What You Need to Know Before Travelling

IPM Business Process Manager Hazel Yaman outlines key visa, work authorisation and border considerations for athletes, media, event staff and spectators travelling to Italy for the Milan–Cortina 2026 Olympic and Paralympic Winter Games, including the impact of the EU’s new Entry/Exit System.

Learn more

Media mentions

Gulf News: Moving to the UAE from the UK? Here’s Your Visa Guide for Jobs, Business and Golden Visas

Corporate Services Director Elena Caron highlights key considerations for UK nationals moving to the UAE.

Learn more

Media mentions

People Management: The UK’s Earned Settlement Proposal: What HR Leaders Need to Know

Associates Charlotte Roberts and Karina Casey highlight how the UK’s earned settlement proposal may influence global talent and HR planning.

Learn more

Media mentions

Konfederacja Lewiatan: Procedura legalizacji zatrudnienia cudzoziemców w Polsce po zmianach w 2025 r.

Poland Immigration Strategy Director Tomasz Rogala contributes to Konfederacja Lewiatan’s analysis on 2025 changes to work permits and foreign employment in Poland.

Learn more

Blog post

F and J Visa Updates: Social Media Checks Begin as DHS Proposes New Limits

Associate Alejandro Hernandez analyses new F and J visa screening practices, including social media vetting by US consulates and proposed DHS changes that could significantly alter admission periods for students and exchange visitors.

Learn more

Awards

Fragomen Ireland Awarded the KeepWell Mark by IBEC

Fragomen Ireland is accredited with IBEC’s KeepWell Mark™, recognizing the practice’s commitment to wellbeing, inclusion and responsible business.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.