The UK government has announced a new update to its graduate work visa policy, affecting thousands of international students including those from India. Effective from August 1, 2025, students applying for the Graduate Route Visa (popularly known as the post-study work visa or PSW) will have to meet additional criteria to qualify.
This uk visa update is part of the UK’s broader immigration reform aimed at balancing economic priorities and public concerns over migration. While the Graduate Route will continue to exist, the new rules are designed to ensure that international graduates entering the workforce contribute to high-skilled sectors and long-term growth.
What Is the UK Graduate Route Visa?
Introduced in 2021, the Graduate Route allows international students who complete a UK degree to stay and work (or look for work) for up to:
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2 years after a Bachelor’s or Master’s degree
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3 years after a PhD
The route does not require employer sponsorship and has been widely used by students from India, Nigeria, and China to gain UK work experience after graduation.
As of mid-2025, over 180,000 students were on graduate visas in the UK.
What Has Changed in August 2025?
From August 1, 2025, new rules have been implemented for students applying for the Graduate Route:
1. Minimum Salary Threshold Introduced
Applicants must now show an offer of employment with a minimum annual salary of £23,000 to be eligible for the 2-year visa. The offer must be from a registered UK business or organization.
2. Sector-Based Priority
The UK government has introduced a list of priority sectors, including:
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Healthcare and Social Care
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IT and Engineering
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Finance and Green Technologies
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Teaching and Research roles
Students working in these fields will get faster approvals and may be exempt from salary thresholds in some regions.
3. Academic Institution Tiering
Only students graduating from accredited Tier-1 institutions (based on research and ranking metrics) will be eligible for an automatic graduate visa. Students from other universities must show a valid job offer before applying.
4. Proof of English Proficiency Retested
Even though students demonstrate English proficiency during admission, the updated rules require a language verification test if the degree was delivered in a hybrid mode for more than 50% of its duration.
5. Visa Fee & IHS Increased
The graduate visa application fee has been increased to £900 (from £715). The Immigration Health Surcharge (IHS) is now £776 per year.
These changes will apply to new applicants from August 1, 2025, onwards. Students who already hold a Graduate Visa or apply before this date will be assessed under old rules.
Why Did the UK Introduce These Changes?
The UK government cites multiple reasons behind this uk visa update:
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Rising public pressure to control post-study immigration
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Need to ensure graduate visas are used by genuine skilled professionals
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Protecting public services and housing from overstretched demand
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Aligning post-study work routes with Skilled Worker Visa standards
The changes also aim to promote regional employment by giving incentives for students to work in Northern Ireland, Wales, and rural England.
Impact on Indian Students
Indian nationals represent the largest group of Graduate Route visa holders in the UK. In 2024 alone, over 60,000 Indian students applied for the PSW visa. The new rules mean:
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Indian students will now need to secure a job offer or prepare for higher competition in priority sectors
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Postgraduate diploma holders may face difficulty if their programs are not listed under Tier-1
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More students may consider Skilled Worker Visas directly, especially for long-term work options
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UK universities may see a drop in non-STEM enrollments due to reduced post-study benefits
Education consultancies are already advising students to plan for career goals before graduation to align with employer expectations.
Alternatives for Students
Despite the changes, there are still multiple pathways for Indian students to work in the UK after graduation:
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Skilled Worker Visa (with sponsorship)
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Graduate Visa with proof of job offer and minimum salary
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Global Talent Visa for researchers and top graduates
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Start-up or Innovator Visa for business-focused students
Universities are being urged to set up career placement cells and increase job fairs to help international students meet the new requirements.
FAQs
Will the Graduate Route Visa end after August 2025?
No, the Graduate Route Visa will continue, but with updated eligibility rules. It is not being scrapped, only refined.
Do I need a job offer before applying for the Graduate Visa?
Yes, under the new rules from August 1, 2025, students must have a job offer with a minimum annual salary to qualify unless they are from a Tier-1 institution.
Are all courses and universities still eligible?
Only degrees from UKVI-recognized and Tier-1 institutions will qualify automatically. Others must meet the job and sector criteria.
Can I switch to a Skilled Worker Visa from Graduate Route?
Yes, if you secure a sponsorship from a UK employer, you can switch at any time during your Graduate Visa period.
Is there any exception to the salary rule?
Yes. In-demand roles in rural or underdeveloped regions, or jobs in government-sponsored sectors like healthcare, may be allowed below-threshold salaries.
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