The Skilled Worker visa is the UK''s main route for hiring overseas talent. The employer must hold a sponsor licence, the role must be on the eligible occupation list (RQF 3+), and the salary must meet the higher of £38,700 or the going rate for the SOC code. Visas are granted for up to 5 years and can lead to settlement.

This guide covers the employer''s perspective — what the visa requires, what you control, what the worker controls, and the costs.

The eligibility tests

A Skilled Worker visa is granted when five tests are met:

Sponsor: the employer holds a valid sponsor licence.
Job: the role is on the eligible Skilled Worker occupation list, with a valid SOC code.
Skill level: the role is at RQF Level 3 (A-level / typical graduate-trainee) or higher.
Salary: meets the higher of £38,700 or the going rate for the SOC code (with limited tradeable points for new entrants, shortage occupations, and STEM PhDs).
English language: the applicant meets the language requirement (B1 CEFR) — either via test, qualification, nationality, or prior visa.

If any test fails, the visa is refused.

Salary thresholds — the central constraint

From April 2024 the general Skilled Worker threshold increased to £38,700. Each SOC code also has a "going rate" — the median salary HMRC and Home Office expect. The role must pay the HIGHER of:

The general threshold (£38,700), OR
The going rate for the SOC code.

The going rates were significantly increased in April 2024 alongside the threshold change. For some roles the going rate now exceeds £40,000; for others (particularly entry-level roles in lower-paid sectors) the £38,700 floor is the binding constraint.

Tradeable points

Lower thresholds apply (typically 70-90% of the going rate) when:

New entrant — first 4 years of Skilled Worker sponsorship, or under 26 years old. £30,960 floor.
PhD relevance — applicant holds a PhD in a subject relevant to the role. £34,830 floor.
STEM PhD — applicant holds a PhD in STEM relevant to the role. £30,960 floor.
Shortage occupation — role on the Immigration Salary List (the new name for the Shortage Occupation List). £30,960 floor.

Note: tradeable-point arrangements changed substantially in 2024. The previous lower-salary-for-shortage-occupations had a 20% discount; that''s now narrower. Some roles previously sponsored on lower salaries are no longer viable under the new rules.

Visa duration and settlement

Initial grant: up to 5 years.
Extension: further 5 years (combining for 10 total).
Settlement (Indefinite Leave to Remain): after 5 continuous years on Skilled Worker (or combination of Skilled Worker and Tier 2 General time, which counts).

Settlement requires: continuous residence (no more than 180 days outside the UK in any 12 months for most cases), passing Life in the UK test, meeting English language requirement, and paying the ILR fee (£2,885 as of 2024).

Costs split between employer and employee

Fee	Who pays
Sponsor licence application	Employer
Certificate of Sponsorship (£239)	Employer
Immigration Skills Charge (£364 / £1,000 per year)	Employer
Visa application fee (£610-£1,084 depending on route and length)	Usually the employee, sometimes employer
Immigration Health Surcharge (£1,035/year, paid upfront for the whole visa term)	Usually the employee, sometimes employer
Biometric Residence Permit fee	Employee

Many employers cover the ISC and CoS fee but pass the visa application and IHS to the employee. There''s no legal requirement either way — but the worker''s ability to claim back ISC from the employee is restricted by Home Office rules.

Total cost across 5 years for a single Skilled Worker (employer + employee combined): typically £15,000-£20,000 plus employer NIC on the salary itself.

Recruiting from overseas vs switching inside the UK

From overseas (entry clearance)

Applicant applies from their home country.
Defined CoS assigned (allocated annually to the sponsor; new allocations available on request).
Decision typically 3-6 weeks (faster with priority service).
On arrival, applicant collects Biometric Residence Permit at a designated Post Office.

Switching inside the UK (in-country)

Applicant already in the UK on another visa (Graduate, dependent, Student, etc.).
Undefined CoS assigned (issued on demand from the sponsor''s allocation).
Decision typically 8 weeks (faster with priority service).

What the employer must do

Before the role is posted:

Confirm the role meets the skill level (RQF 3+) and is on the eligible list.
Confirm the SOC code and going rate.
Confirm the salary level (higher of going rate or £38,700).
Document the role description and "genuine vacancy" assessment.

After identifying the candidate:

Assign the CoS via SMS.
Provide the CoS reference to the candidate (it''s a number, not a paper document).
Assist with employment documentation for the visa application.
Right-to-work check before the worker starts.

After the worker starts:

All ongoing sponsor compliance duties (see our sponsor licence guide).
Pay at least the CoS salary.
Report any change in role / salary / hours / location to UKVI within 10 working days.

Common mistakes

Wrong SOC code — choosing a code that doesn''t actually match the duties. UKVI tests this on audit.
Salary at exactly the threshold — looks reverse-engineered; pay slightly above where commercially reasonable.
Skilled Worker for a role that isn''t really skilled — UKVI rejects "non-genuine vacancy" cases.
Failing to report changes — every salary change, role change, work location change must be reported within 10 days.
Letting the visa lapse without action — when a worker''s visa nears expiry, the sponsor must either extend (via a new CoS) or end the sponsorship.

What to do before sponsoring your first Skilled Worker

Get sponsor licence application in early. 8-16 week timeline plus 5 days to gather evidence.
Map the SOC code and going rate before you make an offer. If the salary doesn''t work, find out before the candidate is committed.
Budget the full cost honestly — including ISC, visa fees, and the time investment in compliance.
Document the role and the genuine vacancy assessment. UKVI asks about this on audit.

Skilled Worker visa explained: an employer's guide