If you’re an employer looking to sponsor a foreign worker to come to the UK, it’s important to understand the costs involved. Sponsoring a worker for a Skilled Worker visa can be expensive, but it may be more affordable than hiring a recruitment agency, depending on your needs. This guide breaks down the key costs of sponsoring a Skilled Worker and the requirements your company needs to meet.
What is a Skilled Worker Visa?
A Skilled Worker visa allows foreign nationals to come to or stay in the UK to work for a licensed employer in a skilled job. To sponsor a worker, employers must hold a Skilled Worker Sponsor Licence.
1. Sponsor Licence Application Fee
Before sponsoring a worker, your company must first apply for a Sponsor Licence. This license lets you hire foreign workers for skilled roles. The cost of applying for the license depends on the size and type of your organization.
- Small or Charitable Sponsor: £536
- Large Sponsor: £1,476
To qualify as a small sponsor, your company must meet at least two of these conditions:
- Annual turnover of £10.2 million or less
- Total assets of £5.1 million or less
- 50 employees or fewer
A charitable sponsor must be a registered charity in the UK.
2. Certificate of Sponsorship (CoS)
Once you have the Sponsor Licence, you can assign a Certificate of Sponsorship (CoS) to a prospective employee. This is a necessary document for them to apply for the Skilled Worker visa.
- CoS Fee: £199 per employee
3. Immigration Skills Charge (ISC)
The Immigration Skills Charge is a fee that sponsors must pay when they assign a CoS. The amount depends on your company’s size and whether the employee is staying for a short or long period.
- For Small or Charitable Sponsors:
- £364 for the first year
- £182 for each additional 6 months
- For Large Sponsors:
- £1,000 for the first year
- £500 for each additional 6 months
4. Skilled Worker Visa Application Fees
While most of the sponsorship costs are paid by the employer, the employee also has to pay certain fees for their visa application.
For Applicants Outside the UK:
- Up to 3 years: £610
- More than 3 years: £1,220
For Applicants Inside the UK:
- Up to 3 years: £704
- More than 3 years: £1,408
Additionally, if you are applying from inside the UK, a biometric enrolment fee of £19.20 is required.
Note: If the worker is applying for a job on the Shortage Occupation List, the fees are lower:
- Up to 3 years: £464
- More than 3 years: £928
5. Immigration Health Surcharge (IHS)
The Immigration Health Surcharge (IHS) is a mandatory fee that allows workers to access the UK’s National Health Service (NHS) during their stay.
- IHS Fee: £624 per year, paid in advance
This fee is typically paid by the employee, and if they have dependents accompanying them, they must also pay the IHS.
6. Additional Costs
In addition to the main fees, there may be other costs involved in the sponsorship process. These could include:
- Visa application center fees for biometric appointments
- Priority visa processing fees
- Courier fees for delivering documents
Example of Total Costs for Sponsoring a Skilled Worker
Let’s say you’re sponsoring a worker for a job that lasts up to 3 years. The breakdown of costs would look like this:
- Sponsor Licence Application Fee: £536
- Certificate of Sponsorship Fee: £199
- Immigration Skills Charge: £1,092
- UKVI Application Fees: £610
- Immigration Health Surcharge: £1,872
Total cost: £4,309
Sponsoring a Skilled Worker in the UK comes with various fees that employers must budget for. While these costs can add up, they may still be more cost-effective than using a recruitment agency. Understanding these fees and planning will ensure that you can make an informed decision about hiring a foreign worker for your business.
If you need help with the sponsorship process or calculating the total cost for your company, Law and Visas can provide expert advice and support. Get in touch to learn more!
