How much does it cost an employer to hire an overseas worker?

The total cost depends on the visa route and the size of the employer. Major costs include the sponsor licence fee (£536-£1,476), certificate of sponsorship (£239), immigration skills charge (£364-£1,000 per year), and potentially the worker's visa fee and IHS. Total costs can range from £5,000 to over £15,000 for a 5-year sponsorship.

Does the employer have to pay the worker's visa fee?

Employers are not legally required to pay the worker's visa application fee or IHS. However, many employers choose to cover some or all of these costs as part of their recruitment package to attract international talent.

What is the immigration skills charge?

The immigration skills charge is a fee paid by employers for each sponsored worker. It is £364 per year for small and charitable organisations, and £1,000 per year for medium and large organisations. It must be paid upfront for the full visa duration.

Are there any exemptions from employer costs?

Some exemptions exist. PhD-level roles are exempt from the immigration skills charge. Small and charitable sponsors pay reduced rates. Certain sectors may have specific exemptions. Check the current rules on GOV.UK.

The Cost of Hiring Overseas Workers in the UK

Employers hiring overseas workers face multiple costs: sponsor licence (£536-£1,476), certificate of sponsorship (£239 per worker), immigration skills charge (£364-£1,000 per year), plus potentially the worker's visa fee and IHS. Total employer costs for a 5-year Skilled Worker sponsorship can range from £5,000 to over £15,000 depending on the organisation's size.

Sponsor Licence

Before hiring any overseas worker, an employer must hold a valid sponsor licence. The licence fee depends on the size of the organisation:

Small or charitable sponsors: £536
Medium or large sponsors: £1,476

The licence is valid for 4 years and covers all workers sponsored during that period. See the GOV.UK sponsor licence page for details.

Certificate of Sponsorship

Each worker needs a certificate of sponsorship (CoS). The fee is £239 per certificate, regardless of company size.

Immigration Skills Charge

The immigration skills charge is the largest ongoing employer cost:

Small or charitable: £364 per year per worker
Medium or large: £1,000 per year per worker

This must be paid upfront for the entire visa duration. For a 5-year Skilled Worker visa at the large employer rate, that is £5,000 per worker.

Worker-Side Costs

While these are technically the worker's responsibility, many employers cover them:

Visa application fee: Varies by route and duration. See our Skilled Worker cost guide.
Immigration Health Surcharge: £1,035 per year. Often paid by the employer as part of the package.
English language test: If the worker needs to take one.

Ongoing Compliance Costs

Beyond direct fees, employers must invest in compliance:

HR time for sponsor duties and record-keeping
Right to work checks for all employees
Reporting changes in the worker's circumstances to the Home Office
Immigration solicitor fees for complex cases

Cost of Settlement

After 5 years, a sponsored worker may apply for ILR. The ILR application fee is paid by the worker, not the employer. After ILR, the worker no longer needs sponsorship, which ends the employer's ongoing costs for that individual.

For the current salary requirements employers must meet, see the immigration salary list and our ILR salary threshold guide.

Is It Worth Hiring Overseas?

Despite the costs, many employers find that hiring overseas workers is essential for filling skills gaps, particularly in healthcare, technology, and engineering. The total cost should be weighed against the cost of unfilled vacancies, the quality of candidates available, and the long-term value the worker brings to the business.

For the latest fee information, check the GOV.UK visa fees transparency data.