Official UKVI Guidance4 min read19 August 2026

Graduate Visa (PSW) to Skilled Worker Transition: 30% Salary Discount & Switching Rules Explained

Rajesh Patel / Graduate Careers Leadโ€ขFact Checked on 21 August 2026
ImmigrantAdvisor Education & Career Desk
Executive Summary

A complete operational guide for international graduates transitioning from the 2-year Graduate Route (PSW) to employer-sponsored Skilled Worker status, including the 30% New Entrant salary reduction and timeline planning.

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What Happened: The Key Facts

The Home Office has clarified switching rules for Graduate Visa holders. International graduates can switch into the Skilled Worker route from inside the UK without returning to their home country. Most importantly, recent graduates qualify as "New Entrants," lowering the minimum required salary to ยฃ30,960 (or 70% of the occupational going rate) for up to 3 years of sponsorship.

Official Government & Authority Statements
โ€œUKVI casework policy confirms: "Applicants switching from the Student or Graduate route qualify for tradeable points under the New Entrant provisions, provided their total period of permission as a new entrant does not exceed four years in aggregate."โ€

Who Is Affected?

International university graduates currently holding 2-year Graduate visas (or 3-year PhD Graduate visas), employers hiring international alumni, and final-year undergraduate/masterโ€™s students in the UK.
Signature Analysis

What This Means For You

We translate complicated UK Home Office policy and tribunal rulings into clear, personalized impacts across different visa circumstances.

Skilled Workers

Work Sponsorship
Explore Skilled Worker Guide

Transitioning to Skilled Worker starts your 5-year clock toward Indefinite Leave to Remain (Graduate visa time does not count for 5-yr ILR).

Practical Actionable Takeaways
  • New Entrant minimum salary threshold is ยฃ30,960 per annum or 70% of standard SOC going rate.
  • Total time permitted under New Entrant status across all visas is capped at 4 years.
  • You can work for your sponsoring employer from the moment your Certificate of Sponsorship (CoS) application is submitted.
  • No resident labour market test is required, but your employer must have an active A-rated Worker Sponsor Licence.
What Happens Next & Implementation Timelines

Graduates should begin sponsor conversations at least 4 months before their Graduate Visa expiry date. Extensions beyond the initial 3-year new entrant grant must meet the full Experienced Worker going rate.

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Community Discussion

How Will This Update Affect You?

Share your questions or practical experience. Comments are moderated to prevent misinformation.

Zainab F.(Pakistan)QUESTION

Can I start working in the new role under the new CoS as soon as my application is submitted or do I have to wait for the BRP / eVisa decision email?

Important Legal Notice: UK immigration rules, thresholds, and policy guidance are subject to frequent change by the Home Office. This article provides journalistic reporting and general educational analysis and does not constitute formal legal advice. Always verify your individual situation with official GOV.UK guidance or consult a regulated immigration advisor.