Being a startup founder, You have finally found the right team member,

A developer, data scientist, or AI specialist whose skills are exactly what your startup needs. They understand your product, move fast, and could genuinely change the trajectory of the business.

Then comes the catch.

They will need a skilled worker visa. To hire them, you need to sponsor them.

This is usually the moment where founders pause. Not because sponsorship is impossible, but because the cost feels unclear.

Before you make a decision, you need a realistic view of what hiring a Skilled Worker will actually cost your startup, both for the business and for the individual you want to bring in.

How much does it cost to hire a migrant Skilled Worker

All figures below are based on official GOV.UK guidance and Home Office fees as at 16 December 2025. These figures reflect the immigration costs of sponsoring a Skilled Worker only. They exclude salary, legal fees, ongoing compliance costs, HR systems, internal resources, and any other employment related expenses.

What you pay as the UK employer?

These are the non-negotiable costs of being a sponsor. You cannot pass these on to the sponsored worker.

Sponsor licence application fee

You only pay this once, when you apply for your licence.

If you are a small or charitable sponsor: £574

If you are a medium or large sponsor: £1,579

Are you a "small" sponsor? Generally, you qualify as a small sponsor if you meet two of the following criteria: your annual turnover is £15 million or less, your total assets are £7.5 million or less, or you have 50 or fewer employees.

Most first time sponsors fall into the small sponsor category, so we will use that example first.

Priority processing for the sponsor licence (optional)

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

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

Certificate of Sponsorship (CoS)

Every time you sponsor a worker, you must assign a Certificate of Sponsorship.

Cost per Skilled Worker CoS: £525

This is paid for each worker and again for any future extension.

Immigration Skills Charge (ISC)

This is usually the largest cost for employers. You pay it upfront when you assign the CoS, 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

Note: There are exemptions for certain roles, such as scientists and researchers, and for workers switching from a Student visa.

Example: small sponsor hiring for 5 years

Let us take a common scenario. You are a small UK business hiring one Skilled Worker for a full 5 year visa.

Employer costs:

  • Sponsor licence: £574

  • Certificate of Sponsorship: £525

  • Immigration Skills Charge for 5 years: £2,400

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

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

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

Example: medium or large sponsor hiring for 5 years

Now the same 5 year hire, but for a medium or large sponsor.

Employer costs:

  • Sponsor licence: £1,579

  • Certificate of Sponsorship: £525

  • Immigration Skills Charge for 5 years: £6,600

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

Again, add £750 if you choose priority processing for the licence.

What the worker usually pays

These are visa related costs. Many employers still choose to cover some or all of them, especially for senior roles or hard to fill positions.

Skilled Worker visa application fee

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

For a 5 year visa:

Applying from outside the UK: £1,519

Applying from inside the UK (switching or extending): £1,751

Each dependant pays the same fee again.

Visa Priority Services

For a faster decision on the visa application, the employee can opt for premium services.

  • Priority Service (for a faster decision): £500

  • Super Priority Service (for a decision usually by the end of the next working day): £1,000

Immigration Health Surcharge

The health surcharge is charged per year, per person.

  • £1,035 per year
    For a 5 year visa, this is:

  • £5,175 for the main applicant

  • £5,175 for each dependant

This is often the biggest cost shock for workers, especially those moving with family.

Maintenance funds

Unless you certify maintenance on the CoS, the worker must show £1,270 in savings.

This is not paid to the Home Office, but it is something employers often choose to cover indirectly by certifying maintenance to reduce friction in the application.

Costs employers often forget

The 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 they are worth factoring in early so sponsorship does not feel more expensive than expected later.

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