The new entrant concession covers several distinct groups. Applicants under 26 years of age at the date of application qualify automatically. Recent graduates switching from a Student or Graduate visa also fall within the definition, as do individuals working toward professional registration in specific regulated occupations.
The DLA Piper guidance confirms that the £33,400 threshold came into effect on 22 July 2025, when wider increases to the Skilled Worker salary floor were implemented. New entrants may be paid 70 per cent of the going rate for their Standard Occupational Classification (SOC) code, provided they earn at least the £33,400 minimum for Table 1 occupations or £25,000 for Table 2 health and care roles.
The Four-Year Clock
New entrants may rely on the reduced salary threshold for a maximum of four years. DavidsonMorris specifies that this period includes time spent under the Skilled Worker route, the predecessor Tier 2 (General) route and any Student or Graduate permission relied upon to qualify as a new entrant. Once the four-year limit is reached, sponsors must pay at least the standard going rate—currently £41,700 or the occupation-specific going rate, whichever is higher—if the individual wishes to extend their visa.
The limit is not calendar-based but accumulative: an applicant who spent two years on a Graduate visa and then switches to Skilled Worker status as a new entrant will have only two years remaining at the discounted rate. Sponsors should track employees' immigration history carefully to ensure compliance when extension applications fall due.
Going Rate and Pro-Rata Adjustments
The new entrant concession applies to the going rate as well as the general salary floor. Guidance published by Oxford University notes that new entrants must earn at least 70 per cent of the published going rate for their SOC code. Going rates vary by occupation and are set out in Appendix Skilled Worker of the Immigration Rules.
Part-time contracts introduce an additional layer of complexity. Where a contract is for fewer than the standard 37.5 or 40 hours per week typical of full-time roles, sponsors must pro-rate the going rate to reflect actual hours worked. However, as DavidsonMorris explains, the cash threshold itself does not reduce: a new entrant working 30 hours per week must still earn £33,400 per year and meet 70 per cent of the pro-rated going rate for those 30 hours. This means shorter working weeks often require a higher hourly rate to satisfy both tests.
What Counts Toward the Salary Requirement
Only guaranteed base salary paid through PAYE qualifies. The figure entered on the Certificate of Sponsorship and visa application should reflect the applicant's base salary, excluding variable elements. DavidsonMorris confirms that guaranteed allowances—such as London weighting or fixed shift premiums—may be included where they are paid consistently and unconditionally. Bonuses, overtime, commission and other variable payments must be excluded.
This creates difficulties for roles with substantial performance-based pay. A role advertised at £40,000 base plus an average £10,000 bonus will not satisfy the £41,700 standard threshold, and a new entrant package structured as £28,000 plus variable payments will fall short of the £33,400 floor. Sponsors must structure compensation accordingly if they wish to use the Skilled Worker route.
Pay-Period Compliance from April 2026
A further change takes effect on 8 April 2026. The March 2026 Statement of Changes HC 1691 introduces a new pay-period assessment framework under paragraph SW 14.3B of Appendix Skilled Worker. Home Office officials will be empowered to examine both the annual salary and specific payroll periods to verify compliance with the minimum salary requirement.
The move addresses cases where sponsors declare an annual salary that meets the threshold on paper but actual pay falls short in particular months, for example due to unpaid leave, salary sacrifice arrangements or irregular payment schedules. OTS Solicitors notes that the new provisions will allow enforcement based on payroll evidence rather than the Certificate of Sponsorship alone. Sponsors should review payroll systems now to ensure monthly salary payments align with figures declared on Certificates of Sponsorship, particularly where employees have opted into pension or childcare salary sacrifice schemes that reduce take-home pay below the visa threshold.
Strategic Implications for Employers
The new entrant route remains attractive for employers recruiting recent graduates or younger professionals, but the four-year cap and pro-rata rules require active workforce planning. HR and immigration teams must track expiry dates for the new entrant concession and model salary progression to ensure individuals can transition to the standard threshold before their four years elapse. A graduate hired in 2025 at £34,000 will need to reach £41,700 or the going rate—whichever is higher—by 2029 to remain on the Skilled Worker route.
The gap between new entrant and standard thresholds has narrowed. Before July 2025, the new entrant floor was £30,960; the increase to £33,400 alongside a rise in the general threshold to £41,700 means the discount now saves £8,300 per year. For occupations with going rates substantially above £41,700—common in technology, finance and legal roles—the 70 per cent concession offers more meaningful relief. A software engineer role with a going rate of £50,000 would require £35,000 for a new entrant (subject to the £33,400 floor), whereas the standard rate remains £50,000.
Employers in the health and care sector benefit from the £25,000 floor for Table 2 occupations, a category covering nurses, paramedics and certain allied health professionals. The NHS Employers guidance confirms that this lower threshold persists for new entrants in these roles, though the 70 per cent going rate calculation still applies.
Planning for Transition
The transition from new entrant to standard salary presents a particular challenge in sectors with structured pay scales. Public sector employers, universities and large corporates often use incremental pay bands that may not reach the required threshold within four years of entry. Sponsors should assess whether salary progression built into standard employment contracts will deliver the necessary increases, or whether ad hoc adjustments will be required to retain visa holders beyond the new entrant period.
Migration from new entrant status also affects employees considering settlement. To qualify for indefinite leave to remain under the Skilled Worker route, applicants must complete five years' continuous residence and meet the salary threshold applicable at the time of their settlement application. The QC Immigration analysis highlights that individuals who exhaust their four-year new entrant period will spend their fifth year subject to the full going rate, which will apply when they submit their indefinite leave to remain application.
Employers recruiting from overseas should therefore model a five-year salary trajectory that accommodates both the new entrant phase and the final year at standard rates. A role that can support the new entrant threshold today but cannot deliver a salary increase to £41,700 or the going rate within four years is not a sustainable Skilled Worker sponsorship.
Compliance Risk
The introduction of pay-period scrutiny from April 2026 shifts enforcement from document review toward payroll audit. Sponsors accustomed to filing Certificates of Sponsorship based on contracted annual salary must ensure that actual monthly payments align with declared figures. The Home Office has long conducted sponsor licence compliance visits, but the explicit power to assess pay periods creates additional exposure. A single month in which an employee's gross pay falls below the pro-rated monthly threshold—whether due to unpaid leave, salary sacrifice or deferred payment—could trigger a compliance breach.
The DavidsonMorris guidance on going rates notes that sponsors should maintain clear records linking payroll data to Certificates of Sponsorship, particularly where multiple employees hold Skilled Worker status on varied terms. Automated payroll systems that flag salary drops below visa thresholds in real time will become standard practice among large sponsors.
