UK Mandates Employers Pay Sponsorship Fees for Skilled Workers, Including Indians

UK Employers Sponsoring Skilled Workers Must Now Bear Sponsorship Costs

The United Kingdom has implemented a significant policy change for employers sponsoring skilled workers, including those from India. Effective December 31, 2024, UK employers are prohibited from shifting key sponsorship-related costs, such as Certificates of Sponsorship (CoS) fees and sponsor licence expenses, onto their employees. This policy adjustment, announced in a ministerial statement on November 28, 2024, marks a pivotal step towards greater fairness for skilled international workers in the UK.

New Policy Highlights

The updated guidelines apply specifically to the Skilled Worker visa route, with plans to expand the rule to other sponsored work visas in the future. Under this policy, UK employers sponsoring skilled workers must shoulder expenses such as:

  • Sponsor licence fees and associated administrative costs: Applications made after December 31, 2024, including priority processing fees, can cost up to £2,000.
  • Certificates of Sponsorship (CoS) fees: Each CoS issued from December 31, 2024, carries a £239 fee, a significant cost for organisations employing multiple international workers.

These changes build on existing rules prohibiting employers from transferring the Immigration Skills Charge (ISC) to employees. However, costs such as visa application fees, Immigration Health Surcharges, and maintenance funds can still be borne by workers or recovered by employers.

Impact on Employers and Non-Compliance Risks

Employers failing to comply face stringent penalties, including the revocation of their sponsor licence. This could result in financial losses, reputational damage, and disruptions for affected employees who may need to find new sponsorship or leave the UK.

Significance for Indian Skilled Workers

India remains a dominant source of skilled professionals for the UK. In the year ending March 2024, approximately 160,676 work visas were granted to Indian nationals, reflecting the high demand for Indian talent across sectors.

Aurelia Menezes, Partner at King Stubb & Kasiva, highlighted the positive implications of this policy:
“This is indeed good news for all non-residents working in the United Kingdom, including many skilled Indians. Sponsors now bear these significant costs, ensuring fair treatment for international workers.”

Financial Considerations for Indian Applicants

While employers will now cover key sponsorship costs, Indian workers must still budget for other expenses, including:

  • Visa application fees: £719 for stays up to three years; £1,639 for longer durations.
  • Healthcare surcharge: £1,035 annually.
  • Maintenance funds: £1,270 unless the employer certifies this cost.

For example, an Indian worker applying for a two-year visa would pay approximately £2,789, excluding additional dependants’ costs.

Dependent Costs and Employer Support

Partners and children accompanying skilled workers must demonstrate self-sufficiency. Employers may choose to cover these costs, which must be confirmed in the Certificate of Sponsorship.

Also Read:Union Budget 2025-26: What NRIs Expect to Strengthen Their Role in India’s Economy

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