Skilled Worker Route Sponsorship Costs: A Comprehensive Guide for UK Companies

If you are an employer who wants to sponsor a foreign worker, you should be aware of the costs involved in the skilled worker visa process. You will have to pay different fees at different stages of the sponsorship, both for the initial application and for the on-going visa process.

This article explains the various expenses that you will incur as an employer when you hire workers on a skilled worker visa in 2025, which replaced the Tier 2 visa.

UK visa sponsorship is a process that allows UK employers to hire workers from outside the UK. To be a sponsor, organizations or employers in the UK will need to have a sponsor license by the UK Visas and Immigration (UKVI). Getting this license involves meeting certain requirements, like showing a commitment to following immigration rules and proving they can handle the responsibilities of being a sponsor.

UK employers are required to hold a valid sponsor license to employ non-UK resident workers through most work visa routes. Being a sponsor license holder entails costs that need to be considered in recruitment and on-going employment budgets.

The Home Office implements a tiered fee system for sponsorship license applications.

According to the Home Office, an organization is considered a small company if it meets at least two of the following criteria:

1. The company’s turnover is no more than £10.2 million.
2. The company’s balance sheet total is no more than £5.1 million.
3. The company has no more than 50 employees.

If a business falls within the definition of a small business or is a charity, it will pay the small company application fee, which is £536.

If a company does not meet the criteria specified by the Home Office of a small business, it will be categorized as a larger business, and the corresponding application fee will be £1,476.

Upon obtaining a Sponsor Licence, a company is obligated to issue a Certificate of Sponsorship (CoS) to each sponsored worker. Presently, the fee for a CoS stands at £239 per certificate, regardless of whether it is a Defined Certificate of Sponsorship for entry clearance or an Undefined Certificate of Sponsorship for leave to remain in the UK.

The precise and accurate assignment of CoS is crucial to avoid unnecessary expenditure and potential refusals in visa applications. Incorrectly assigning a CoS type not only increases the risk of visa application rejections but also puts the company at risk of failing to comply with sponsor duties, which may, in turn, lead to the suspension or revocation of the sponsor license. It’s noteworthy that if there are changes in a skilled worker’s job code, they may necessitate an additional CoS to continue their employment with the same company. This underscores the significance of meticulous attention to CoS details to ensure a smooth and compliant sponsorship process.

The Immigration Skills Charge is a fee mandated by the UK government for employers sponsoring skilled workers from abroad. Its primary aim is to prompt employers to invest in local workforce training, reducing reliance on migrant labor. This charge is applied on a per-employee basis and is paid upfront when issuing a Certificate of Sponsorship (CoS) to the sponsored worker. The fee amount varies based on the employer’s size and nature:

1. Small or charitable organizations: £364 per sponsored worker per year.
2. Medium to large organizations: £1,000 per sponsored worker per year.

Certain exceptions, such as students switching or specific job codes for skilled workers, may be exempt from this fee. Notably, unlike most charges, the Immigration Skills Charge must be covered by the employing company.
There’s a possibility of partial refunds if the sponsored migrant doesn’t complete the full CoS duration, experiences visa application issues, or doesn’t come to work for the sponsoring company.

Businesses have the option to expedite the processing of sponsor licence applications or in-year Certificate of Sponsorship (CoS) allocations within the UK by choosing priority processing services. The pre-licence priority sponsor licence service enables a quicker processing time, typically within 10 working days, in exchange for a fee of £500 per request.

After you get your sponsor license, additional costs may arise, and these can be covered either by the company or the applicant.

The visa application fees differ depending on the duration of the Certificate of Sponsorship (CoS) and the job category, including whether it falls under the shortage occupation list. As of January 2024, the visa application fees per person are as follows:

Applicants for visas with a duration exceeding 6 months are subject to the Immigration Health Surcharge (IHS) fee. As of today, these fees stand at:

• Most adult migrants: £ 1,035 per year
• Students and individuals on the Youth Mobility Scheme: £ 776 per year
• Children under 18: £ 776 per year