UK Immigration Blog & Legal Guidance

Skilled Worker New Entrant Salary Discount: Could the Four-Year Limit Increase?

Written by Oliver O'Sullivan | Nov 10, 2026, 11:23:01 AM

The Migration Advisory Committee has recommended significant changes to the Skilled Worker new entrant salary rules, including replacing the current percentage-based discount with a single £33,400 salary rate and extending the period for which a worker can qualify as a new entrant. The Government has confirmed that it intends to implement these changes from spring 2027.

For employers sponsoring international graduates and other early-career workers, the proposed changes could provide greater flexibility in managing salary progression.

However, the precise length of the new entrant period has not yet been confirmed.

What is the Skilled Worker new entrant salary discount?

The Skilled Worker route currently allows certain applicants to qualify as "new entrants" and benefit from reduced salary requirements.

A person may qualify as a new entrant in circumstances including where they are:

  • under 26 when they apply;
  • switching from a Student or Graduate route in qualifying circumstances; or
  • undertaking certain recognised professional training.

The current rules allow the new entrant discount to be used for a maximum of four years.

The discount currently operates through a combination of a reduced general salary threshold and a 70% reduction to the relevant occupation-specific going rate, subject to the applicable minimum salary requirements.

This can create difficulties for employers because a sponsored worker may need to receive a substantial salary increase once their new entrant eligibility expires.

What has the MAC recommended?

In December 2025, the Migration Advisory Committee (MAC) published its review of Skilled Worker salary requirements.

The MAC recommended replacing the existing percentage-based approach with a single new entrant salary rate of £33,400.

The purpose would be to make the system more closely reflect the salaries typically earned by graduate entrants to the labour market.

The MAC noted that the current £33,400 new entrant general threshold is already broadly consistent with graduate starting salaries and recommended retaining a rate at approximately this level.

This would mean that new entrants would no longer have their salary calculated simply by applying a 70% discount to the occupation-specific going rate.

The proposed £33,400 rate is not the same as the current rules

This distinction is important. The MAC did not simply recommend keeping the current new entrant system at £33,400. Instead, it proposed:

A single £33,400 new entrant rate, together with a change to the length of time for which the discount can be used.

This could make the new entrant rules considerably more attractive for some occupations where the standard going rate is substantially higher than £33,400.

Could the four-year new entrant period become six years?

Potentially, yes. The MAC specifically recommended that the current four-year period should change. However, the MAC did not make a definitive recommendation that the new entrant discount should last exactly six years.

Instead, it modelled how long a new entrant might need to reach the relevant undiscounted salary threshold under different combinations of salary thresholds.

Its modelling produced the following scenarios:

Occupation-specific threshold General threshold Potential new entrant period
25th percentile £41,700 6 years
25th percentile £48,400 9 years
Median £41,700 13 years
Median £48,400 16 years

The MAC's preferred approach was to reduce occupation-specific thresholds to the 25th percentile while retaining a general threshold of around £41,700. Under that scenario, its modelling suggested a six-year new entrant period.

These figures should not, however, be interpreted as confirmed immigration rules.

The MAC expressly said that the figures represented the theoretical period needed for salary progression and were not recommendations for settlement eligibility.

Why does the MAC want to extend the discount?

The MAC identified a practical problem with the existing four-year system. A graduate entering the UK on a Skilled Worker visa may start on a relatively modest salary, with the expectation that their earnings will increase as they gain experience.

The current rules can require employers to accelerate salary progression simply because the worker is approaching the end of their four-year new entrant period.

The MAC found that some employers were therefore paying migrant workers considerably more than British workers in equivalent roles to satisfy the immigration requirements, while others were deciding not to sponsor them.

A longer new entrant period could allow salary progression to happen more naturally.

When could the changes take effect?

The Government has now confirmed that it intends to implement the MAC's recommendations on Skilled Worker salary requirements from spring 2027.

The Government's 2026 Budget confirms that the package will include:

  • reducing occupation-specific salary thresholds from the median to the 25th percentile;
  • uprating the general salary threshold using 2026 wage data;
  • annually updating salary thresholds using ONS wage data;
  • levelling new entrant discounts into a single figure for people studying, recently graduated or undertaking professional training; and
  • removing the existing PhD salary discount.

The Government has not yet published the final Immigration Rules setting out the precise new entrant period or the final salary thresholds.

A parliamentary answer on 4 November 2026 confirmed that the changes are intended to be implemented from spring 2027 but stated that further details and impacts would be provided in due course.

What does this mean in practice?

Employers should therefore not yet assume that the new entrant period will definitely be six years.

Six years is the outcome of the MAC's preferred salary-threshold scenario. The final period will depend on the Government's chosen salary thresholds and how it incorporates the reforms into the Immigration Rules.

There is another important reason for this uncertainty: settlement reform.

How could the new entrant changes interact with settlement?

The MAC specifically highlighted the potential interaction between the new entrant discount and future settlement rules.

Under the current system, a Skilled Worker can generally qualify for settlement after five years, but the new entrant salary discount currently lasts for only four years.

This means that, in the existing system, a worker has a period after their new entrant discount expires in which to meet the full salary requirements before applying for settlement.

If the new entrant discount were extended to six years or longer, that relationship would change.

The MAC therefore highlighted the Government's proposed changes to settlement policy as an important factor in determining the appropriate duration of the new entrant discount.

This is particularly significant following the Government's earned settlement proposals published in November 2026.

The eventual interaction between salary requirements and settlement eligibility therefore remains an area employers and sponsored workers should watch closely.

Who could be affected?

The proposed changes could be particularly relevant to employers recruiting:

International graduates

Employers recruiting graduates who move from the Student or Graduate route into Skilled Worker sponsorship could potentially benefit from a longer period during which the new entrant salary rate applies.

This may be particularly relevant where graduates enter professional occupations with salary progression built into their career path.

Young professionals

Workers who qualify as new entrants because they are under 26 could potentially remain eligible for the lower salary requirement for longer.

This could give employers greater flexibility when recruiting early-career international talent.

Employers with structured salary progression

The change could be particularly useful for businesses where employees typically start at a relatively low graduate salary and progress through salary bands over several years.

Rather than having to make an immigration-driven salary adjustment after four years, employers could potentially follow their normal remuneration structure for longer.

Higher-paying occupations

The move to a single £33,400 rate could have a particularly noticeable effect in occupations with relatively high going rates.

The MAC found that some occupations would experience a significant reduction in the effective salary threshold under its proposed single-rate approach. It also noted that these occupations tend to have relatively few new entrants, meaning the potential impact on the wider labour market should be limited.

What should employers do now?

The proposed changes are not yet the law.

Employers should therefore continue applying the current Skilled Worker rules when assessing sponsorship applications.

However, employers with significant graduate recruitment or international hiring programmes should consider reviewing:

  • current sponsored workers approaching the end of their four-year new entrant period;
  • planned Graduate-to-Skilled Worker switches in 2027;
  • salary progression arrangements for international graduates;
  • occupations where the current 70% going-rate discount creates difficulties; and
  • potential recruitment plans where sponsorship becomes more viable if the proposed changes are implemented.

It may also be worth considering whether an application made before or after the implementation of the new rules would produce a materially different salary position.

What happens next?

The Government has committed to implementing the MAC's salary recommendations from spring 2027, but the detailed Immigration Rules have not yet been published.

The key issues to watch are therefore:

1. The final general Skilled Worker salary threshold

This is expected to be recalculated using 2026 wage data.

2. The final occupation-specific going rates

The Government intends to move these from the current median to the 25th percentile.

3. The final new entrant rate

The MAC recommended a single rate of £33,400, but the Government will need to confirm the precise figure and how it will be uprated.

4. The duration of new entrant eligibility

This is perhaps the most significant unanswered question for employers.

The MAC's modelling points towards six years under its preferred salary-threshold scenario, but longer periods were modelled if higher general salary thresholds are ultimately selected.

5. The interaction with earned settlement

The final new entrant period may need to be considered alongside the Government's reforms to the route to settlement.

Migrate UK's view

The proposed reform could make the Skilled Worker route more workable for employers recruiting international graduates and early-career professionals.

The potential move from a four-year to a longer new entrant period is particularly significant because it recognises a basic feature of graduate employment: salary progression takes time.

However, employers should be cautious about treating the MAC's six-year modelling as a confirmed policy change.

Until the Government publishes the detailed Immigration Rules, the safest position is that the current four-year rules remain in force, while a longer new entrant period is expected to be introduced from spring 2027.

Migrate UK will continue to monitor the publication of the new Immigration Rules and the Government's implementation of the MAC recommendations.

Need advice on sponsoring a new entrant or planning salary progression for an international graduate? Migrate UK can advise employers on the current Skilled Worker requirements and the potential impact of the forthcoming changes.

Frequently asked questions

Will the Skilled Worker new entrant discount increase from four years to six years?

The Government has confirmed that it will change the new entrant discount from spring 2027, but it has not yet confirmed a six-year period. The MAC's preferred salary-threshold scenario produced a six-year period in its modelling.

Will the new entrant salary be £33,400 from 2027?

The MAC recommended a single new entrant rate of £33,400. The Government has confirmed that it will implement a single new entrant figure, but the final Immigration Rules have not yet confirmed the exact rate or how it will be uprated.

Who qualifies as a Skilled Worker new entrant?

The current rules include people under 26 and certain recent graduates and individuals undertaking recognised professional training. The precise eligibility rules should be checked when making an application.

When will the Skilled Worker salary changes happen?

The Government has stated that it will implement the MAC salary recommendations from spring 2027.

Will the new entrant changes affect settlement?

Potentially. The MAC specifically identified an interaction between the length of new entrant eligibility and settlement policy. This will need to be considered alongside the Government's earned settlement reforms.