Using the Immigration Skills Charge and Certificate Costs in Workforce Planning: Practical Guidance for Employers

Employers sponsoring overseas workers need to budget for more than salary. For a three-year Skilled Worker hire, a medium or large sponsor currently pays £3,960 in Immigration Skills Charge (ISC) plus £525 for the Certificate of Sponsorship (CoS), making the core employer sponsorship cost £4,485 before any licence or optional priority-service fees.

The ISC increased on 16 December 2025 to £480 for the first 12 months for small or charitable sponsors and £1,320 for other sponsors. Each additional six months costs £240 or £660 respectively.

What does one sponsored hire cost?

Employer cost	Small/charitable sponsor	Medium/large sponsor
Certificate of Sponsorship	£525	£525
ISC for 3 years	£1,440	£3,960
Total for 3 years	£1,965	£4,485
ISC for 5 years	£2,400	£6,600
Total for 5 years	£2,925	£7,125

The CoS fee for Skilled Worker and Senior or Specialist Worker sponsorship remains £525. Employers must pay this themselves and cannot pass it to the sponsored worker.

If you do not yet hold a Worker sponsor licence, the application fee from 8 April 2026 is £611 for a small or charitable sponsor and £1,682 for a medium or large sponsor. The optional priority service costs £750.

A business is usually treated as small if at least two of the following apply: annual turnover of £15 million or less, total assets of £7.5 million or less, or 50 employees or fewer. Businesses growing through acquisition should also review managing business changes and mergers as a sponsor.

Costs normally paid by the worker

The worker usually pays their visa application fee and, where applicable, the Immigration Health Surcharge. The standard IHS remains £1,035 per year for most adults and £776 for children under 18 and certain other discounted categories.

Employers can choose to cover some employee costs commercially.

Our guide to supporting employees through Skilled Worker applications considers that support, while bringing dependants to the UK covers family applications.

When is the Immigration Skills Charge not payable?

The ISC only applies to Skilled Worker and Global Business Mobility Senior or Specialist Worker sponsorship. Important exemptions include certain PhD-level occupation codes and Skilled Workers switching in the UK from the Student route.

Entry-clearance applications for less than six months are also exempt.

Situation	ISC normally payable?
Skilled Worker from overseas for 6+ months	Yes
Senior or Specialist Worker	Usually yes
Skilled Worker switching from Student in the UK	No
Specified PhD-level occupation	No
Graduate Trainee	No ISC because the charge does not apply to that route
UK Expansion Worker	No ISC
Scale-up Worker	No ISC

Correct occupation coding is therefore important. See genuine vacancies and SOC codes.

Build sponsorship costs into workforce planning

A large sponsor planning four three-year Skilled Worker hires from overseas would pay £2,100 in CoS fees and £15,840 in ISC, totalling £17,940 before visa support or recruitment costs.

Plan CoS requirements early using managing Certificate of Sponsorship allocations and assigning Certificates of Sponsorship.

Most new Skilled Worker roles must now normally be at RQF Level 6 or above unless an exception applies. Salary requirements vary by route, occupation and tradeable-points option, so employers should not assume £41,700 applies to every case. See the April 2026 Skilled Worker salary rules and our comparison of Skilled Worker, Senior or Specialist Worker and Expansion Worker routes.

Frequently asked questions

Can employers recover the CoS fee from a sponsored employee?

No. The employer must pay the CoS fee and cannot pass it to the sponsored worker.

Is the Immigration Skills Charge paid every year?

No. It is normally paid upfront when the CoS is assigned, based on the employment period stated on the certificate.

Can an employer receive an ISC refund?

Yes, in specified circumstances, including where an application is refused or withdrawn, the worker does not start employment, or employment ends earlier than stated. Refund amounts depend on the circumstances.

Does every sponsored worker attract the ISC?

No. The charge applies principally to Skilled Worker and Senior or Specialist Worker sponsorship, with several exemptions.

Employers should also budget for ongoing compliance. Review maintaining an A rating, sponsoring overseas staff and TUPE and transferring sponsored workers.

Current fees and guidance are available on the GOV.UK sponsorship pages. For advice on planned hires and sponsorship costs, speak to Athi Law's immigration solicitors.