Cost of Sponsoring a Worker in the UK: Employer and Employee Fees Explained

In today’s globalized workforce, business immigration is essential for UK employers seeking diverse talent. Sponsoring a worker under the Skilled Worker Visa can help fill skill gaps, but understanding the associated costs is crucial for compliance and budget planning. With the UK’s evolving immigration system post-Brexit, businesses must stay informed about new rules and financial commitments. This guide will clarify the costs for both employers and employees involved in the sponsorship process, helping businesses navigate the complexities and stay compliant.

1. Overview of Sponsoring a Worker in the UK

Sponsoring a worker in the UK, especially under the Skilled Worker Visa, requires obtaining a sponsor licence from the UK Home Office. Without this licence, employers cannot issue a Certificate of Sponsorship (CoS), essential for the worker’s visa application. A sponsor licence usually stays valid for as long as you continue to meet the eligibility requirements, with no renewal, and its cost varies depending on the business size. Scale-up and UK Expansion Worker licences are the exception and last 4 years.

Once the sponsor licence is secured, businesses assign a CoS to the worker. This fee is paid each time a CoS is assigned, so budget for it when planning the sponsorship. Understanding all costs—from the sponsor licence fee to compliance requirements—ensures businesses remain compliant and avoid penalties.

2. Employer’s Costs: What Are Employers Required to Pay?

When sponsoring a worker under the UK’s immigration system, employers must consider various costs associated with the process. These costs are essential to ensure that the company complies with UK immigration regulations while also securing the right to employ skilled workers from outside the UK. Understanding these costs is crucial for employers to budget effectively and avoid any unexpected financial burdens. In this section, we’ll break down the key costs employers must cover, including the Sponsor Licence Fee, Immigration Skills Charge, Certificate of Sponsorship (CoS) Fee, and ongoing compliance requirements.

a. Sponsor Licence Fee

To begin the sponsorship process, businesses must apply for a sponsor licence. The cost of sponsor licence depends on the size and type of the sponsoring organisation. The fees are as follows:

It’s important to note that whether your organisation qualifies as a "small or charitable sponsor" or "medium/large sponsor" depends on factors like annual turnover, total assets, and number of employees. You are usually a small sponsor if at least two of these apply: your annual turnover is £15 million or less, your total assets are worth £7.5 million or less, and you have 50 employees or fewer.

b. Immigration Skills Charge

In addition to the sponsor licence fee, employers are required to pay the Immigration Skills Charge when they assign a Certificate of Sponsorship (CoS) to a skilled worker. This charge depends on the length of the sponsorship and the size of the sponsor organisation.

The Immigration Skills Charge applies when you sponsor a Skilled Worker or Senior or Specialist Worker who is applying from outside the UK to work for 6 months or more, or from inside the UK for any length of time. You do not pay it for certain occupation codes, including several science, research and higher education teaching roles, or for a worker switching from a visa that allowed them to study. The charges are as follows:

These rates apply to a CoS assigned on or after 16 December 2025.

This charge is paid at the time the employer assigns a CoS to the employee. The amount can accumulate over the course of the worker’s stay, with the maximum being:

● £2,400 (5 years) for small or charitable sponsors

● £6,600 (5 years) for medium or large sponsors

It’s important to note that refunds are possible under certain circumstances, such as if the worker’s visa is refused or they do not take up the job. 

You must pay the full charge in one go when you assign the CoS, and it is essential for businesses to include this cost in their budget planning to ensure compliance with UK immigration laws.

c. Certificate of Sponsorship (CoS) Fee

When sponsoring a worker under the Skilled Worker Visa, an employer must assign a Certificate of Sponsorship (CoS) for each employee they wish to bring into the UK. The CoS is an electronic document with a unique reference number that is required by the employee to apply for a visa. You pay the CoS fee each time you assign a certificate, including when the worker extends or changes job.

The cost of assigning a CoS depends on the type of licence the employer holds and the type of worker being sponsored. Here’s a breakdown of the costs:

Our Certificate of Sponsorship guidance page explains the two types of CoS, how allocations work and the time limits that apply once a certificate is assigned.

Key Points to Remember:

● The worker must use the CoS to apply for their visa within 3 months of it being assigned.

● Employers must ensure they check whether the employee needs an Academic Technology Approval Scheme (ATAS) certificate before assigning the CoS.

The CoS fee is essential for sponsoring workers and should be considered as part of the overall cost of hiring a foreign worker under the Skilled Worker Visa.

You must pay the sponsor licence fee, the CoS fee and the Immigration Skills Charge yourself. Asking a worker to pay the CoS fee or the Immigration Skills Charge, or recouping either from them later, is a ground on which the Home Office will normally revoke your licence. For the CoS fee, this applies to Skilled Worker certificates assigned on or after 31 December 2024, and to Global Business Mobility, Minister of Religion, International Sportsperson, Scale-up and Seasonal Worker certificates assigned on or after 9 April 2025.

d. Compliance and Reporting Costs

As part of the sponsorship process, employers are also required to comply with several ongoing responsibilities and regulatory requirements. These include maintaining records, reporting to the UK Visas and Immigration (UKVI) about the status of sponsored employees, and ensuring that their internal systems comply with immigration laws.

Ongoing Compliance and Reporting Requirements

Employers must:

● Monitor employee status: Ensure that sponsored employees continue to meet the conditions of their visa (e.g., maintaining employment with the sponsor, not breaching work hours).

● Report changes: Notify UKVI if the employee’s employment status changes, such as if they leave the company, are suspended, or fail to report to work.

● Record keeping: Maintain comprehensive records of all sponsored workers, including employment details and compliance with UKVI guidelines.

Potential Costs for Internal Systems, Audits, and Reporting

To streamline these processes, businesses may need to invest in internal systems and software solutions. These could include:

To help businesses manage these compliance requirements, WorkPermitCloud LTD offers HR management solutions tailored to UK visa sponsorship. These solutions ensure seamless management of recruitment functions, employee record-keeping, and reporting.

3. Employee’s Costs: What Will the Sponsored Worker Have to Pay?

While employers shoulder much of the sponsorship costs, there are also several expenses that the sponsored worker must bear when applying for a visa and moving to the UK. In this section, we’ll cover the key costs that the employee will face, including the visa application fee, the Immigration Health Surcharge (IHS), and additional documentation costs such as English language proficiency tests and criminal record certificates. Understanding these costs is essential for workers to budget and plan ahead for their move to the UK.

a. Visa Application Fee

The Visa Application Fee is one of the most significant expenses for a sponsored worker. This fee varies depending on factors such as the type of visa, the duration of stay, and whether the worker is applying from inside or outside the UK. The fees are subject to change, so it's important for workers to check the latest fee structure before applying. The UK Home Office has launched a Visa Application Fees Portal to provide up-to-date information on application costs. A Skilled Worker application costs £819 for up to 3 years or £1,618 for longer if made from outside the UK, and £943 or £1,865 if made from inside the UK. For a job on the Immigration Salary List it is £628 or £1,235 wherever you apply, and for a Health and Care Worker visa it is £324 or £628.

WorkPermitCloud LTD UK also offers a convenient IHS & Visa Application Fee Calculator to help workers estimate their costs based on their specific visa type and duration.

b. Immigration Health Surcharge (IHS)

The Immigration Health Surcharge (IHS) is another important cost for the sponsored worker. This fee grants the worker access to the UK’s National Health Service (NHS) during their stay. The surcharge is paid at the time of visa application and is calculated based on the length of the visa.

Here’s a breakdown of the IHS costs:

● £1,035 per year for most visa applicants, including Skilled Workers and their adult dependants.

● £776 per year for students, their dependants, Youth Mobility Scheme applicants and anyone under 18 when they apply.

● £388 for students, their dependants or under-18s applying from inside the UK for 6 months or less.

● £517.50 for any other applicant applying from inside the UK for 6 months or less.

Additionally, workers can use the Immigration Health Surcharge Calculator to calculate the exact amount they need to pay based on their visa length and type.

c. English Language Proficiency and Other Documentation

To qualify for a Skilled Worker visa, workers may need to demonstrate their English proficiency, which often involves taking an IELTS test or another approved exam. The costs for these tests can vary, depending on the test provider and location.

Additionally, some visa applicants may need to provide a criminal record certificate. This is typically required for applicants seeking work in sectors like healthcare, education, and social care, especially if they will be working with vulnerable populations. For more information on how to obtain a criminal record check, refer to the UK government's guidance on Overseas Criminal Records Checks.

It’s important to budget for these additional documentation costs, as they can vary depending on the worker’s country of origin and the specific requirements of their visa type.

4. Additional Costs and Considerations

While the main costs for sponsoring a worker and their visa application have been outlined, there are a few additional expenses and considerations that both employers and employees should keep in mind. These can vary depending on the worker's country of origin, visa category, or occupation. Below, we’ll explore some of the more specific costs that could arise.

Pre-departure Tuberculosis (TB) Testing

For workers coming from certain countries, Pre-departure Tuberculosis (TB) Testing is a mandatory requirement before they can apply for a visa to the UK. This is required by the UK Home Office to ensure that workers do not bring TB into the country. The TB test is needed for workers applying for a visa longer than 6 months.

The list of countries where TB testing is required is available on the UK government’s official page: Countries Requiring TB Testing. Workers from these countries must undergo the test at an approved clinic and provide the results as part of their visa application. The cost of the test can vary by country and clinic.

Global Talent Visa Fees

The Global Talent Visa is designed for highly skilled individuals in fields such as science, technology, engineering, medicine, and the arts. It needs no sponsor, so there is no sponsor licence fee, CoS fee or Immigration Skills Charge, and the applicant pays the application fee and the Immigration Health Surcharge.

Healthcare Worker Visa Fees

Healthcare workers applying for a Health and Care Worker Visa may benefit from reduced visa application fees. This visa is designed to help fill positions in the NHS and social care sectors. The application fee for workers on this visa is lower than that for other Skilled Worker visa applicants. Health and Care Worker visa holders, and their partners and children, do not pay the Immigration Health Surcharge.

Other Potential Costs and Exceptions

While the costs listed above are the most common, there are several other scenarios that could lead to additional fees or exceptions:

● Special Visa Categories: Some visa categories, such as the Youth Mobility Scheme, have specific fees and requirements that differ from the general Skilled Worker visa.

● Dependants: If the worker is bringing Dependants (spouse, children) to the UK, they may need to pay additional visa application fees and the Immigration Health Surcharge for each dependant.

● Extension or Switching of Visa: If the worker’s visa is extended or they switch to another type of visa (e.g., from a student visa to a work visa), additional application fees and charges may apply.

5. How Can WorkPermitCloud Help?

Managing a Skilled Worker Sponsor Licence can be complex, but WorkPermitCloud simplifies the process. Our expert team offers support throughout the application and compliance journey, ensuring your success.

Schedule a free consultation to discuss your needs.

Our HR Compliance Software automates recruitment, tracks employee data, and ensures Home Office compliance, making your HR tasks easier.

Let us handle the complexities of sponsorship so you can focus on growing your business. Book an appointment today!