Warning to International Students: UK Skilled Worker Visa Thresholds Rise

The UK has raised work visa pay rules again, reshaping the path for international students who hope to stay after graduation. From July 22, 2025, the general salary floor for the Skilled Worker visa moved to £41,700 a year, and the job itself must now sit at RQF Level 6 (graduate level). The well-known 20% pay discount for shortage jobs has gone, and sponsors must pay at least the higher of the standard threshold or the occupation’s “going rate.” These changes are already affecting summer and autumn hiring for 2025 graduates across technology, finance, banking, and actuarial roles.

Government guidance sets three main salary gates. First, the new headline threshold is £41,700 (or £17.13 per hour based on a 48-hour week). Second, applicants with a relevant PhD can qualify at £37,500 if the subject is non-STEM, and £33,400 for STEM PhDs or “new entrants.” Third, if the occupation’s going rate is higher, the offer must match that higher figure. In practice, several computing and data roles now carry going rates above the headline threshold. That is why many advisers cite offers “around £55k” for certain Computer Science job codes, especially in London.

The skill bar has risen too. Before 2025, RQF Level 3 roles (A‑level equivalent) could qualify in some cases; now only RQF Level 6 roles are eligible. This shift removes many roles that students sometimes used as a first step while building experience, and it narrows the list of sponsorable occupations. The government also ended the 20% salary discount for Shortage Occupation List roles, and it signaled a move away from the broad Immigration Salary List (ISL). The ISL is expected to lapse by December 31, 2026, with a tighter, time-limited Temporary Shortage List (TSL) to follow for specific needs.

Transitional protections exist but are limited. Some people extending visas in roles held before July 22, 2025 can renew on lower figures (around £31,300) if they meet the specific extension rules. The Health and Care route keeps separate, slightly lower pay points, though those have risen over time as well. New entrant and STEM PhD discounts remain modest and do not bridge the gap for most entry-level offers in private-sector graduate roles. The bottom line across sectors: the offer must hit the relevant threshold at the time of application, not after a year of experience.

The practical effect: a post-study job must pay well on day one. Many common graduate roles now fail to meet sponsorship thresholds even if the candidate shows strong performance or rapid progression.

According to analysis by VisaVerge.com, the removal of salary discounts and the higher skill bar means fewer employers can or will sponsor graduates in their first roles. In tech, some large firms pay enough for a small number of graduate hires, but many midsize companies do not. In finance and actuarial work, starting pay often falls short of the new bands unless the role is in a top‑paying team or niche. Advisors say the change hits smaller cities hardest, where graduate pay trails London rates by a wide margin.

Real‑world examples illustrate the gap:

• A Computer Science graduate may receive strong internship feedback yet still fall short of the going rate for sponsorship.
• A banking analyst outside London might clear £40,000 but miss £41,700 and the higher occupation rate.
• A junior actuary can pass exams fast yet remain below the sponsorable level for a year or more.

These stories are common among 2025 graduates who planned to switch into sponsored status right after their course.

Policy changes overview

• The general salary threshold rose to £41,700 from July 22, 2025; the job must also meet or beat the occupation “going rate.”
• PhD routes: £37,500 for relevant non‑STEM PhD; £33,400 for STEM PhD or new entrant roles.
• Skill level: increased to RQF Level 6, removing many roles that were previously eligible.
• Shortage discount: the 20% discount for shortage roles ended; the ISL is due to expire by December 31, 2026, with a narrower TSL planned.
• Transitional rules: limited protections apply to extensions started before July 22, 2025; Health and Care thresholds remain separate but have risen.

These steps are part of a government push to target work migration at higher‑paid, higher‑skilled roles. The Migration Advisory Committee is reviewing the shortage list approach and may suggest further changes in 2026. Separate ideas under consultation, such as higher English requirements and longer routes to settlement, have not yet been implemented.

Impact on applicants and employers

Universities report more questions from final‑year students about whether to accept offers below sponsorship levels, bank experience on a Graduate route where available, or look abroad. Some graduates now:

• Focus on roles that clearly clear £41,700 or the higher going rate, even if the job is a stretch.
• Pivot to countries with lower first‑year thresholds.
• Seek employers that have long used sponsorship and know how to structure compliant pay.

Employers face higher salary outlays and tighter compliance. Many are reviewing salary bands, early‑career programs, and locations. Common employer responses include:

• Limiting sponsorship to a few top‑paid graduate seats.
• Pausing sponsorship entirely outside critical roles.
• Revising hiring timelines because candidates need proof of pay and SOC code alignment before applying for permission to work.

Practical steps for students

1. Check the official Skilled Worker visa guidance and pay tables on GOV.UK, including the job’s SOC code and going rate.
2. Ask employers early whether the contract meets the relevant threshold for that SOC code.
3. If a role is close to the line, be clear about hours: going rates can assume a standard week, while the general threshold is noted at £17.13 per hour on a 48‑hour basis.
4. Plan alternatives if the offer misses the bar, such as:
   • Roles in other countries,
   • Later start dates with higher pay,
   • Sectors with sponsor‑ready pay scales.

The Home Office page for requirements and application steps is here: https://www.gov.uk/skilled-worker-visa. It explains sponsor duties, eligibility, fees, and the steps to apply online, and it clarifies that an applicant must have a valid Certificate of Sponsorship and meet the salary rules at the time of application.

Final takeaways

For many graduates, the most jarring figure remains the “around £55k” pay that some Computer Science roles now need for sponsorship because of occupation rates. Even among top UK universities, few entry offers reach that number. Finance and actuarial graduates report similar gaps, especially outside London.

These rules do not make study in the UK a bad choice, but they do mean the study‑to‑work path now favors a smaller share of high‑paying roles immediately after graduation. International students should therefore plan earlier, check employer compliance, and consider alternative pathways if their first offers fall short.