The Graduate Visa currently allows university graduates to stay and work in the UK for 2 years after completing their degree, and 3 years after a PhD or other doctoral qualification.
To continue working for an organisation beyond the expiry of a Graduate visa, a visa-holder will require sponsorship under the Skilled Worker visa route. If an employer doesn't already have a Skilled Worker sponsor licence, then they will need to apply for one. This is a very common issue that employers face (see our piece for People Management magazine for more). An employee who has been trained and nurtured for 2 years will need sponsorship to continue their employment.
The Graduate visa offers flexibility: you can work for whoever you want, for any salary, for any hours, on any contractual basis. However, because the route is only for 2 years and cannot be extended, most Graduate visa holders will be looking at a route to indefinite leave to remain (ILR) through switching to the Skilled Worker visa route.
See our recent article on the route to ILR for Students and Graduates for more information, especially on why early planning is so important for those looking to remain in the UK beyond a Graduate visa.
This guide will cover
✅how and when to apply ✍️
✅ employer eligibility criteria 📝
✅ fees and processing times 💰
The Graduate visa is only valid for 2 years (3 years for PhD holders). Working backwards, it is important to understand the process for switching on to another visa. A Skilled Worker visa is a quick application, but a company needs to have an available Certificate of Sponsorship (CoS) and more importantly the company needs to have a Skilled Worker sponsor licence.
Sponsor licence applications typically take 8 weeks to be processed, and requesting additional CoS for a company that already has a sponsor licence can take up to 18 weeks. Ideally then, the Graduate is in employment and having conversations about being sponsored by the organisations by at least 18 months into their Graduate visa.
If the Graduate visa expires, then the individual will lose their right to work in the UK, will need to leave the UK to make an application to return, and could potentially lose the advantage of a lower salary threshold that is available for Graduate visa holders.
Job Offer: An applicant requires a confirmed job offer from a company that is a licensed sponsor.
Skill Level: The job offer must be for a role that qualifies as an eligible skill level under the Skilled Worker visa routes, which is now RQF6 (degree level) or above, unless the role is in shortage.
Salary: The job offer must meet the minimum salary threshold for the Standard Rate and Going Rate for the particular occupation.
Graduates are eligible for a lower salary threshold and a lower Going Rate called the 'New Entrant' rate. The New Entrant rate can be paid for a maximum of 4 years, including any time spent on the Graduate visa, so 2 years if switching from one to the other. The New Entrant rate has a Standard Rate of £33,400 or 70% of the Going Rate for the occupation (whichever is higher). This is a more realistic graduate-level salary compared to the Standard Rate of £41,700 without the New Entrant rate.
The New Entrant rate can only be used once for a Skilled Worker visa, so make sure your employer maximises this concession.
Certificate of Sponsorship: A Graduate has to be assigned a valid Certificate of Sponsorship (CoS).
The Skilled Worker visa route has become quite complex in terms of minimum salary requirements, but for those on Graduate visas now, the following will apply:
General threshold: £41,700 (from July 2025), £17.13 an hour. This the baseline salary and hourly rate for most Skilled Worker applications, but Graduates also have the advantage of having at least 2 years being paid at the New Entrant threshold (see below). To remain beyond these 2 years, the general threshold will need to be met to extend the Skilled Worker visa.
New entrant threshold: £33,400 (or 70% of going rate). This salary can be met for at least 2 years (up to 4 if the switch is made sooner or from a Student visa).
PhD discount: £37,500 (non-STEM) / £33,400 (STEM), which in combination with a 3-year Graduate visa, 1 year at the New Entrant rate, can provide a more accessible salary to remain on the Skilled Worker visa with an employer.
Immigration Salary List discount: Can be £33,400 for some occupations (and 100% of going rate). The Immigration Salary List allows for some lower-skilled jobs to be sponsored and for slightly lower salaries, but the list is being removed at the end of 2026, so future extensions will be unlikely.
Read more:
Skilled Worker Visa Salary Thresholds in 2025 Explained
How to Choose the Correct SOC Code for Skilled Worker Sponsorship
The common scenario is as follows: company employs person on a Graduate visa because they have an unrestricted right to work, no minimum salary requirement or skill level applies, there are no concerns with how a person was recruited, and it didn't cost the employer anything.
The Graduate works for the employer, succeeds in the role, and both parties want the employment to become permanent or long-term. However, 3 months prior to the date of the Graduate's visa expiry, HR software pings a reminder to the HR team of the upcoming expiry. HR inform the Graduate and their manager, who expresses a desire to retain the employee.
However, in many cases, the organisation now has a short period of time to:
Understand if the role can be sponsored under the Skilled Worker visa route.
Consider if the employee's salary is sufficient to be paid under either the New Entrant rate or 100% of the Going Rate for the SOC code.
Consider if only the New Entrant rate can be paid, if only being able to sponsor them for 2 years at first is in everyone's interests.
If the company doesn't have a sponsor licence, commence the process of applying for one, which can up to 12 weeks.
If the company does have a sponsor licence, understand if you still have access to the Sponsor Management System, have the relevant Key Personnel in place and available Certificates of Sponsorship to assign. These updates can all take up to 18 weeks to action.
Assign a Certificate of Sponsorship and submit a visa application all ahead of the expiry date.
There is a lot to consider, and so it is advisable for employers to:
✅ Set a visa-expiry reminder for a Graduate visa for at least 6 months before the date of expiry.
✅ Consider form the outset of employment if there is a path towards a sponsorable role and salary.
✅ Consider whether the company would benefit from a Skilled Worker sponsor licence, since you only need to apply for it once to be able to sponsor workers whenever you need.
✅Make sure CoS has an appropriate SOC code, salary, job description, and visa length to avoid refusals.
Read more:
There are various costs with any UK visa, and a lot of these costs will vary depending on: company size, visa length and job role. In many cases the following fees would apply:
Mandatory Employer costs:
Sponsor licence (if the company doesn't already have one): £611 or £1,682
Certificate of Sponsorship: £525
Immigration Skills Charge: £480 or £1,230 a year
A 2-year visa can cost a small company £4,498 if they already have a sponsor licence.
Read more:
Breakdown of the Costs for a Skilled Worker Visa in 2025
Can I switch from Graduate to Skilled Worker before my Graduate visa expires?
Absolutely. The advantage of staying on a Graduate visa is the flexibility the visa allows in terms of employment. By switching earlier however, you begin on a route to ILR sooner and sponsorship is more realistic since the New Entrant rate can be utilized for longer.
Do I qualify for the new entrant salary discount?
As a Graduate, yes. The common mistake is not understanding that unless you are under 26, you can only use the New Entrant under provisions for switching from the Graduate visa to the Skilled Worker. There can be a gap between the Graduate visa and Skilled Worker visa as long as no other visa applications have been made in between. The other mistake is being issued a CoS for a longer period that the period you are qualified for the New Entrant rate. A 3-year visa, for example, will require the General Threshold to be met for every year.
What happens if my employer does not have a Sponsor Licence?
Your employer will need to apply for a sponsor licence, or you will need to find another visa route to remain employed.
Can I switch to a different employer after getting the Skilled Worker visa?
Yes, but not on the New Entrant salary rate unless you are under 26 years old.
Does time on the Graduate visa count towards ILR?
Yes and No. The Graduate visa doesn't lead to ILR, and doesn't combine with Skilled Worker towards ILR in that category, but it can count with time spent as a Student and as Skilled Worker under current 10 year long residence ILR requirements.
Post-Study Options in 2025: Navigating the Graduate Visa and Beyond
Skilled Worker Visa Salary Thresholds in 2025 Explained
How to Choose the Correct SOC Code for Skilled Worker Sponsorship
Student Visa to ILR: What Are Your Long-Term Settlement Options?
✅ The transition Graduate to Skilled Worker requires early planning. There are several low hurdles to complete in a short amount of time, so avoid having too much too too soon to an expiry date.
✅ Start exploring sponsorable occupations well before the Graduate visa expires. Make sure the skill level is high enough and the salaries are realistic.
Consult with us if you are an employer who has identified an individual that you are looking to employ for longer than 2 years. It is important to understand the rules around skill level, salaries, visa length and it is essential to understand the timings involved, so get in touch.