International graduates of UK universities can work in the UK on the Graduate visa (formerly Post-Study Work) for 2 years (3 years for PhDs) without sponsorship — meaning no sponsor licence needed and no salary threshold. After the Graduate visa expires, they typically switch to Skilled Worker or another sponsored route. This is the easiest entry-level international hiring path for UK businesses.

For UK SMEs wanting to hire from a global talent pool without taking on the cost and admin of a sponsor licence, the Graduate visa is the entry point. As of 2024-2025, the route faces tightening — but remains the most flexible work permission for international UK university graduates.

The Graduate visa — current rules

Eligibility

The individual qualifies if they:

Hold a UK degree (Bachelor''s, Master''s, or PhD) from an approved UK higher education provider.
Have been a Student visa holder during the qualifying course.
Are still in the UK (or apply within 6 months of leaving) when they apply.
Successfully completed the qualifying course.

The university notifies the Home Office on completion; the individual then applies for the Graduate visa from inside the UK.

Duration

Bachelor''s and Master''s degree: 2 years.
PhD or other doctoral qualification: 3 years.

What the visa allows

Work for any UK employer.
Work at any skill level (including roles below RQF Level 3).
Self-employed work.
No salary threshold.
No restriction on type of work (with limited exceptions like professional sport).

What it doesn''t allow

The visa cannot be extended — the maximum duration is the original 2 or 3 years.
Time on the Graduate visa doesn''t count toward Indefinite Leave to Remain.
No sponsorship of dependants directly via the Graduate visa (dependants must have arrived as Student dependants and applied separately).

Cost

Application fee: ~£822 (2024/25). Immigration Health Surcharge: £1,035/year, paid upfront for the whole visa.

Total cost: ~£3,000 for 2 years; ~£3,900 for 3 years. Typically paid by the graduate, not the employer.

Why this matters for UK SME hiring

The employer doesn''t need a sponsor licence to hire a Graduate visa holder. This removes:

The 8-16 week licence application timeline.
The £574-£1,579 application fee.
The ongoing compliance burden (SMS, reports, audits).
The cooling-off period if a previous licence was revoked.

No salary threshold

A Graduate visa holder can be hired at any salary — minimum wage upward. This contrasts with Skilled Worker''s £38,700+ threshold, which excludes many entry-level roles.

Speed to hire

Standard hiring timeline. The graduate already has work permission; no visa processing delay.

Reduced compliance burden

The employer does standard right-to-work checks — same as for a British worker. No SMS reporting, no audit risk.

How to hire a Graduate visa holder

Right-to-work check — Graduate visa holders verified via online share code (per the standard online check process for non-British workers).
Standard employment contract — same as any other employee.
Track the visa expiry — record the visa expiry date in HR. The visa cannot be extended; if the employment is to continue, the worker must switch to another route (typically Skilled Worker).
Plan the switch 6-12 months before expiry — if you want to retain the worker beyond Graduate visa expiry.

Switching to Skilled Worker

Most Graduate visa holders who want to remain in the UK long-term switch to Skilled Worker before the Graduate visa expires.

For the switch:

Employer must have a sponsor licence.
Role must meet Skilled Worker requirements (RQF Level 3+, eligible SOC code).
Salary must meet the higher of £38,700 or going rate (with new-entrant discount for first 4 years — £30,960 floor).
Standard Skilled Worker visa application from inside the UK.

The "new entrant" discount applies for the first 4 years of Skilled Worker sponsorship OR for workers under 26 — letting graduates work at lower salary thresholds in their early career roles.

Many UK SMEs use this pattern: hire on Graduate visa with no friction, develop the worker, then sponsor them on Skilled Worker as they progress to a role that meets the threshold.

What''s changing — the policy direction

The Graduate visa has come under political scrutiny:

Migration Advisory Committee (MAC) review in 2024 recommended keeping the route largely intact but tightening enforcement.
Some Conservative government proposals suggested narrowing the route to graduates from "high-performing" universities only — not enacted before the 2024 election.
Labour government position (2024 onward): retain the route but couple it with stronger sponsor licence enforcement.

As of 2026, the route remains in place. Future changes (durations, eligible university lists, salary requirements at switch) remain plausible but not enacted. UK SMEs should make use of the current rules while they apply but plan for possible future restrictions.

Practical advantages and limitations

Advantages

Easiest, cheapest, fastest route to hire from a global talent pool.
Workers are already in the UK and culturally adjusted.
No compliance burden vs sponsored routes.
Excellent for entry-level / graduate-trainee programmes.

Limitations

2 or 3-year hard cap — must plan the next step.
No long-term certainty without successful Skilled Worker switch.
Worker may be poached by competitors offering sponsorship sooner.
Doesn''t solve mid-career international hiring.

What to do this month

If you''re a UK SME interested in international hiring:

Build relationships with UK university career services. Most universities run job fairs and have graduate-recruitment programmes.
For roles at entry/graduate level, prioritise Graduate visa hires over Skilled Worker — the friction and cost differences are significant.
For roles you''ll want to retain long-term, plan the Skilled Worker switch from day one — including obtaining a sponsor licence if you don''t have one.
Diarise Graduate visa expiry dates in HR.

Hiring international graduates in the UK