How much does it cost an employer to sponsor a Skilled Worker?

If you are considering sponsoring a migrant worker, the hardest part is rarely the process itself. It is understanding the true cost and being able to explain it clearly to finance teams or senior leadership.

The simplest way to approach sponsorship costs is to split them into two groups. What you must pay as the employer, and what the worker usually pays as part of their visa application. Once you separate those, the numbers are far easier to plan for.

All figures below are based on official GOV.UK guidance and Home Office fees as at 16 December 2025.

How much does it cost an employer to sponsor a Skilled Worker?

For a small sponsor hiring one Skilled Worker for five years, the employer pays £3,499 in Home Office fees. This covers the sponsor licence application fee, the Certificate of Sponsorship, and the Immigration Skills Charge. If the employee applies from inside the UK as a single applicant, they usually pay £1,751 for the visa plus £5,175 for the Immigration Health Surcharge, bringing their personal application costs to £6,926.

What you pay as the UK employer

These are mandatory costs of sponsorship. You cannot pass them on to the sponsored worker.

Sponsor licence application fee

This is a one off fee paid when you apply for your sponsor licence.

• Small or charitable sponsor: £574

• Medium or large sponsor: £1,579

You are usually classed as a small sponsor if you meet two of the following criteria: annual turnover of £15 million or less, total assets of £7.5 million or less, or 50 or fewer employees. Most first time sponsors fall into this category.

Priority processing for the sponsor licence (optional)

If you need a faster decision, you can request priority processing for £750.

This does not guarantee approval. It only speeds up the decision once the application is submitted. Places are limited each working day, so availability is not guaranteed.

Certificate of Sponsorship (CoS)

You must assign a Certificate of Sponsorship for every Skilled Worker you sponsor.

• Cost per Skilled Worker CoS: £525

This fee applies each time you sponsor a worker and again for any extensions.

Immigration Skills Charge (ISC)

This is usually the largest employer cost. It is paid upfront when you assign the CoS and is based on the length of sponsorship.

For a small or charitable sponsor:

• £480 for the first 12 months

• £240 for each additional 6 months

• Maximum for 5 years: £2,400

For a medium or large sponsor:

• £1,320 for the first 12 months

• £660 for each additional 6 months

• Maximum for 5 years: £6,600

Some roles are exempt, including certain scientists and researchers, and workers switching from a Student visa.

Example: small sponsor hiring for five years

A common scenario is a small UK business hiring one Skilled Worker on a full five year visa.

Employer costs:

• Sponsor licence: £574

• Certificate of Sponsorship: £525

• Immigration Skills Charge for five years: £2,400

Total employer cost for this hire: £3,499.

If you also choose priority processing for the licence, add £750, bringing the total to £4,249.

This is the full Home Office cost the employer must budget for.

Example: medium or large sponsor hiring for five years

Using the same five year hire for a medium or large sponsor:

Employer costs:

• Sponsor licence: £1,579

• Certificate of Sponsorship: £525

• Immigration Skills Charge for five years: £6,600

Total employer cost for this hire: £8,704.

Add £750 if you also use priority processing.

What the worker usually pays

These are visa related costs. Many employers choose to cover some or all of them, especially for senior or hard to fill roles, but they are not legally required to do so.

Skilled Worker visa application fee

The fee depends on where the worker applies and the length of the visa.

For a five year visa:

• Applying from outside the UK: £1,519

• Applying from inside the UK, including switching or extending: £1,751

Each dependant pays the same fee again.

Visa priority services

If the worker wants a faster decision, they can choose premium services.

• Priority service: £500

• Super priority service, usually by the end of the next working day: £1,000

Immigration Health Surcharge

This is charged per person, per year.

• £1,035 per year

For a five year visa:

• £5,175 for the main applicant

• £5,175 for each dependant

This is often the biggest surprise cost for workers, particularly those moving with family.

Maintenance funds

Unless you certify maintenance on the Certificate of Sponsorship, the worker must show £1,270 in personal savings.

This is not paid to the Home Office, but many employers choose to certify maintenance to reduce friction in the application process.

Costs employers often forget

Home Office fees are only part of the picture. In practice, many employers also spend money on:

• Legal or advisory support

• Internal time spent on compliance, reporting, and right to work checks

• Relocation support, temporary accommodation, or flights

• Document translation or qualification verification

These costs vary, but factoring them in early helps avoid sponsorship feeling more expensive than expected later.

If you would like help with a sponsor licence application, a new Certificate of Sponsorship, or any other aspect of Skilled Worker sponsorship, specialist immigration advisers such as Nara Solicitors can provide support.

Book a consultation now