Insight
How Do Employers Switch a Worker from a UK Graduate Visa to a Skilled Worker Visa in 2026?
Author:
Jenny Han
Senior Associate / Solicitor
Key Points
A Graduate visa holder may switch to the Skilled Worker route from inside the UK.
Employers usually need to assign an Undefined Certificate of Sponsorship.
Many Graduate visa holders may qualify as New Entrants.
The New Entrant salary threshold is £33,400 or 70% of the going rate, whichever is higher.
Graduate visa time counts toward the four-year New Entrant limit.
Employers usually pay the Immigration Skills Charge when switching from Graduate to Skilled Worker.
What is the Graduate visa to Skilled Worker visa switch?
The Graduate visa to Skilled Worker visa switch allows an international graduate already in the UK to move from temporary post-study work permission into a sponsored employment route.
The Graduate visa is useful because it gives graduates the freedom to work in the UK without sponsorship for a limited period. However, it cannot be extended, and applicants who want a longer-term UK work route usually need to switch into another eligible visa category, such as Skilled Worker. GOV.UK confirms that Graduate visa holders cannot extend the Graduate visa but may be able to switch to another visa, including Skilled Worker.
For employers, this switch can be commercially attractive. A Graduate visa often gives the business time to assess the employee’s performance before committing to sponsorship. But once the employer moves the worker into the Skilled Worker route, the arrangement becomes a formal sponsorship relationship with salary, compliance, record-keeping and reporting duties.
Can an employer sponsor someone switching from a Graduate visa to a Skilled Worker visa?
Yes. An employer can sponsor a Graduate visa holder under the Skilled Worker route if the employer has a valid sponsor licence, the role is eligible, the salary meets the relevant threshold, and the worker meets the immigration requirements.
Because the applicant is already in the UK, this is normally treated as an in-country switch. The employer usually assigns an Undefined Certificate of Sponsorship, rather than applying for a Defined CoS. GOV.UK sponsor guidance states that Defined CoS are for workers applying from outside the UK, while Undefined CoS are used where the worker is applying for permission to stay from within the UK.
This distinction is important. Assigning the wrong type of CoS can result in serious compliance consequences. If a sponsor assigns an incorrect CoS, the Home Office may take compliance action, which could include refusing the worker's application and, depending on the circumstances and the seriousness of the breach, downgrading, suspending or revoking the sponsor licence.
What salary must an employer pay when switching a Graduate visa holder to Skilled Worker?
The salary depends on whether the worker qualifies for a discounted tradeable points option, most commonly the New Entrant option.
For a standard Skilled Worker application, the salary must normally be at least £41,700 per year or the full going rate for the relevant SOC 2020 occupation code, whichever is higher.
For a New Entrant, the salary must be at least £33,400 per year or 70% of the going rate for the relevant SOC 2020 occupation code, whichever is higher.
This means the £33,400 figure is not always enough. If 70% of the going rate is higher than £33,400, the higher figure applies.
Salary route | 2026 salary rule | Employer takeaway |
Standard Skilled Worker | £41,700 per year or 100% of the applicable going rate, whichever is higher | Default route where no salary discount applies. |
New Entrant | £33,400 per year or 70% of the applicable going rate, whichever is higher | Commonly used for Graduate visa switchers and other eligible new entrants. |
The applicant has a PhD in a subject relevant to the job | £28,200 per year or 90% of the applicable going rate, whichever is higher | Only available where the applicant holds a PhD in a subject relevant to the role. |
The applicant has a PhD in a STEM subject relevant to the job | £25,000 per year or 80% of the applicable going rate, whichever is higher | Only available where the applicant holds a relevant STEM PhD. |
Immigration Salary List | £25,000 per year or the applicable Immigration Salary List going rate, whichever is higher | Check that the SOC code and job are included on the Immigration Salary List before relying on this discount. |
Does a Graduate visa holder qualify as a New Entrant?
A Graduate visa holder may qualify as a New Entrant if their most recent grant of permission (disregarding any permission as a Visitor) was as a Graduate. They may also qualify if their Graduate permission expired less than two years before the date of the Skilled Worker application, provided they have not held any other type of immigration permission since the Graduate permission expired.
Appendix Skilled Worker also confirms that, where an applicant relies on this New Entrant provision, the combined period of permission granted as a Skilled Worker, Graduate and/or Tier 2 (General) migrant must not exceed four years.
This is one of the most important planning considerations for employers. The four-year New Entrant limit is cumulative and does not reset when a Skilled Worker visa is granted. Time already spent on a Graduate visa counts towards the four-year maximum.
For example, if a worker has already spent two years on a Graduate visa, the employer can normally rely on the New Entrant salary discount for only a further two years. If the worker needs to extend their Skilled Worker permission beyond that point, they will generally need to meet the standard Skilled Worker salary threshold and the full applicable going rate, unless another salary discount applies.
What Certificate of Sponsorship should the employer use?
For a Graduate visa holder switching from inside the UK, the employer should normally assign an Undefined Certificate of Sponsorship.
A Defined CoS is for workers applying for entry clearance from outside the UK. An Undefined CoS is for workers applying for permission to stay from within the UK. GOV.UK guidance makes this distinction clear and warns that sponsors must understand the difference before assigning a CoS.
Before assigning the CoS, the employer should confirm:
The worker is still lawfully in the UK.
The role is eligible under the Skilled Worker route.
The correct SOC 2020 occupation code has been selected.
The salary meets both the general threshold for a new entrant and going rate test.
The business has enough Undefined CoS allocation available.
The job description genuinely reflects the role being sponsored.
Does the employer have to pay the Immigration Skills Charge?
Usually, yes. Employers normally have to pay the Immigration Skills Charge when sponsoring someone from inside the UK under the Skilled Worker route, unless a specific exemption applies.
This is a common area of confusion. Switching directly from certain study-related permission can be exempt, but Home Office sponsor guidance distinguishes Graduate permission from the Student route for this purpose. The sponsor guidance states that the “Student course complete switching to Skilled Worker” category does not include permission on the Graduate route.
As of the latest GOV.UK fee information, the Immigration Skills Charge is:
Sponsor size | First 12 months | Each additional 6 months |
Small or charitable sponsor | £480 | £240 |
Medium or large sponsor | £1,320 | £660 |
The employer must pay the Immigration Skills Charge itself and must not pass the cost on to, or recover it from, the sponsored worker. GOV.UK states that a sponsor licence may be revoked if the employer asks the sponsored worker to pay the Immigration Skills Charge or linked costs.
What other Home Office fees should employers budget for?
Employers should budget for the CoS fee, Immigration Skills Charge, internal compliance work and any professional advice required.
The Skilled Worker Certificate of Sponsorship fee is now £525. This is a significant update from older figures that many employers may still have in their internal templates.
Sponsors must also be careful not to pass CoS costs back to the worker. GOV.UK sponsor guidance states that sponsors must not recoup, or attempt to recoup, the CoS fee or associated administrative costs from sponsored workers.
What skill level must the job meet in 2026?
From 22 July 2025, Skilled Worker roles must normally be skilled to RQF Level 6, or graduate level, unless the role is included on the Immigration Salary List, Temporary Shortage List, or falls within a transitional provision.
This is an important update because older Skilled Worker content often refers to RQF Level 3. That is no longer the usual position for new sponsorship after the 2025 rule changes.
The worker does not personally need to hold a graduate-level qualification. What matters is whether the job itself is skilled to the required level and appears in the correct Appendix Skilled Occupations table.
What salary can be counted toward the Skilled Worker threshold?
Only certain elements of pay can be counted towards the Skilled Worker salary requirement.
Appendix Skilled Worker and the Sponsor Guidance provide that the salary must consist of guaranteed gross basic pay. Payments such as overtime, bonuses, employer pension contributions, benefits in kind, company cars, equity, immigration cost payments and business expenses cannot be counted towards meeting the salary requirement. Only guaranteed payments that are payable for the sponsored employment and are treated as taxable earnings may be included.
For employers, this means that the salary stated on the Certificate of Sponsorship must be made up of eligible guaranteed pay. A remuneration package that relies heavily on bonuses, overtime or other variable payments may be commercially attractive, but it will not meet the Skilled Worker salary requirement if the guaranteed salary is below the applicable threshold or going rate.
How the Home Office assesses salary
The Home Office has detailed rules on how a sponsored worker's salary is calculated. Employers should understand these rules before assigning a Certificate of Sponsorship.
Working more than 48 hours a week: In most cases, if a worker is contracted to work more than 48 hours per week, the salary earned for hours above 48 cannot be used to meet the Skilled Worker salary requirement.
Workers with rotating or uneven hours: Different rules apply where a worker follows a regular shift pattern with different hours each week. In these cases, the Home Office looks at the average weekly hours over a work cycle of up to 17 weeks. This means some weeks can exceed 48 hours, provided the average does not. Any unpaid rest weeks are included when calculating the average.
Paying the required salary: Sponsors must pay workers at the intervals agreed in the employment contract, which is usually monthly. The worker must continue to receive at least the required salary over the relevant assessment period. Depending on how they are paid, this is normally assessed over three months, 12 weeks or 17 weeks.
Calculating the going rate: The published going rates are based on standard working hours. If a worker is contracted to work more or fewer hours, the going rate is adjusted accordingly. Where a salary discount applies, such as for a New Entrant or an applicant with a relevant PhD, the discounted percentage is applied to the adjusted going rate.
These rules are particularly important where employees work shifts, annualised hours or other flexible patterns, or where their salary is close to the minimum required level. Employers should review payroll arrangements regularly to ensure they continue to meet the Skilled Worker requirements throughout the sponsorship period.
What are the steps to switch a Graduate visa holder to Skilled Worker?
The employer should follow a structured process before assigning the CoS.
First, confirm that the business holds an active sponsor licence for the Skilled Worker route.
Second, identify the correct SOC 2020 occupation code and confirm that the role is eligible under the 2026 rules.
Third, calculate the salary using both the general salary threshold and the relevant going rate.
Fourth, check whether the worker qualifies as a New Entrant and how much of the four-year limit has already been used.
Fifth, assign an Undefined CoS from the Sponsor Management System.
Sixth, pay the CoS fee and any applicable Immigration Skills Charge.
Seventh, ensure the worker submits the Skilled Worker application before their Graduate visa expires.
Finally, keep records showing how the role, salary, SOC code and New Entrant eligibility were assessed.
Example: When the £33,400 New Entrant floor controls
A Graduate visa holder is offered a business research role under SOC 2434. The standard going rate for business and related research professionals is listed as £38,800.
Seventy percent of £38,800 is £27,160. Because this is below the New Entrant salary floor, the employer must pay at least £33,400.
In this scenario, the £33,400 floor controls the salary calculation.
Example: When 70% of the going rate controls
A Graduate visa holder is offered a software developer role under SOC 2134. The standard going rate for programmers and software development professionals is listed as £54,700.
Seventy percent of £54,700 is £38,300. Because this is higher than £33,400, the employer must pay at least £38,300.
In this scenario, the 70% going-rate calculation controls the salary.
Annual salary is not the only requirement. The hourly rate must also comply with the Immigration Rules. The applicable going rate is based on the worker's contracted weekly hours, so employers must ensure that both the annual salary and the hourly rate meet the required threshold. A salary that meets the annual minimum may still be insufficient if the hourly rate falls below the pro-rated going rate for the occupation.
What documents should employers keep for audit purposes?
Employers should keep clear records before and after assigning the CoS.
Recommended documents include:
A copy of the worker’s right to work check or share code confirmation.
Evidence of the worker’s current or previous Graduate visa status.
The signed employment contract.
The job description used to select the SOC code.
The salary calculation, including the going rate comparison.
Evidence supporting New Entrant eligibility.
Records of CoS assignment and fee payment.
Proof that the Immigration Skills Charge was paid by the employer.
Payroll records showing ongoing salary compliance.
Any internal approval notes explaining why sponsorship was required.
These records are important because sponsor compliance is not assessed only at the application stage. The Home Office may review whether the role is genuine, whether the salary is being paid as stated, and whether the sponsor has met its reporting and record-keeping obligations.
FAQ: Graduate visa to Skilled Worker visa switch
Can a Graduate visa holder switch to Skilled Worker from inside the UK?
Yes. A Graduate visa holder can usually switch to Skilled Worker from inside the UK if they meet the requirements and have a qualifying sponsored job.
Does the employer need a sponsor licence?
Yes. The employer must hold a valid Skilled Worker sponsor licence before assigning a Certificate of Sponsorship.
Is a Graduate visa holder always a New Entrant?
No. A Graduate visa holder may qualify as a New Entrant, but employers must check the route history, expiry timing and four-year limit.
Does Graduate visa time count toward the New Entrant limit?
Yes. Time spent on the Graduate visa counts toward the four-year combined limit for the New Entrant salary option.
What is the New Entrant salary threshold in 2026?
The New Entrant salary threshold is £33,400 per year or 70% of the going rate for the occupation code, whichever is higher.
Does the employer need a Defined or Undefined CoS?
For an in-country Graduate visa switch, the employer normally uses an Undefined CoS.
Does the employer pay the Immigration Skills Charge?
Usually, yes. Graduate route switches are not the same as direct Student route switches for ISC purposes, unless another exemption applies.
Can the employer recover immigration costs from the worker?
The employer must not recover the Immigration Skills Charge from the worker. Sponsors also must not recoup the CoS fee or associated administrative costs.
Does the Graduate visa count toward settlement?
Time on the Graduate route does not count toward five-year settlement under Skilled Worker, although it may count toward long residence in some cases. GOV.UK’s settlement consultation materials state that Graduate route time does not count toward five-year settlement.
Final thoughts
Switching a worker from a Graduate visa to a Skilled Worker visa can be an effective way to retain international graduates already contributing to the business. It can help employers preserve trained talent, reduce recruitment disruption and build longer-term workforce stability.
However, the process should not be treated as a simple visa extension. The employer must check the role, salary, SOC code, New Entrant eligibility, CoS type, Immigration Skills Charge and payroll compliance before proceeding.
A careful review at the start can prevent avoidable delays, refusals and sponsor licence risk.
Need help switching a Graduate visa holder to Skilled Worker?
WestBridge Business Immigration can review the role, salary, SOC code and sponsorship process before you assign the Certificate of Sponsorship.
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Disclaimer
The information provided in these articles is for general guidance only and does not constitute legal advice. Immigration rules change frequently and individual circumstances vary, so you should always seek tailored advice from a qualified immigration lawyer before making any decisions. If you require professional support, our team would be pleased to assist you.
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