Understand the new entrant discount in the Skilled Worker route: a guide for employers

The Skilled Worker visa route changed in 2024. It now offers new opportunities for employers sponsoring international workers. One of these is through the new entrant discount. This can help employers save money while bringing in new talent. Let’s break down who qualifies for this discount and how your business can benefit. 

Who qualifies as a new entrant?

The new entrant discount allows employers to offer lower starting salaries to certain skilled workers.  New entrants are new to their jobs or industries. This discount applies under Option E of Appendix Skilled Worker on gov.uk. This relates to new employees. 

To use this discount, you need to know who counts as a new entrant. These people qualify: 

• Anyone under 26 years old when they apply 
• Postdoctoral researchers in specific scientific and academic fields, like chemical and biological sciences 
• Professionals working towards a recognised qualification in a UK-regulated profession 
• Those aiming for full registration with a professional body 
• Recent graduates or students whose Student visa expired less than two years ago, if they: 
  • Haven’t had any other visa
  • Have finished or are close to finishing their course 

Key benefits for employers

The new entrant discount is useful when hiring recent graduates or people under 26. Here’s how it helps: 

• Lower starting salary: Employers can offer a minimum starting salary of £30,960 instead of the usual £38,700. This can help you save costs, especially if you’re hiring multiple new entrants. 
• Lower going rates: The required going rate is also lower, ranging from £30,960 to £58,870 per year. It depends on the job. The hourly rate must still be at least £15.88. 
• Flexible salary planning: This discount allows you to hire talented workers at a lower starting cost. Salary requirements will rise after a certain period of time. 

Important considerations

While the new entrant discount offers short-term savings, there are some points to keep in mind. 

Time limit

The discount lasts for up to four years in total. This includes time spent on a Graduate visa. This visa is usually for two or three years. After this, you will need to raise salaries to meet the standard Skilled Worker requirements. 

Future pay rises

If you want to keep the employee after the discounted period, you’ll need to give them a new certificate of sponsorship at the higher salary threshold. This could mean a pay rise. It depends on the job and occupation code. 

For many employers, the new entrant discount helps manage early salary costs while hiring new talent. However, it’s important to plan for the pay rises after the discount ends. This will help you keep valuable employees without unexpected financial worry.

Conclusion

The new entrant discount to the Skilled Worker route can lower costs when hiring young professionals and recent graduates. While it gives immediate savings, you need to be ready for higher salary requirements later. Keeping up with any changes in immigration rules will also help you manage your sponsored workers. By using this discount wisely, you can attract top talent while managing your salary costs. This can set your business up for long-term success. Stay informed about any updates with Scotland’s Migration Service to make the most of this and other immigration opportunities. 

For more detailed guidance on these changes book an appointment with Scotland’s Migration Service