US Imposes $100,000 Annual Fee on H-1B Visas, Affecting Indian Professionals
The US administration has mandated a new $100,000 annual fee for each H-1B visa, a program heavily used by Indian IT professionals. The order, effective September 21, aims to ensure only "very highly skilled" individuals are hired and to prevent the replacement of American workers. This move is expected to significantly impact US tech companies and the Indian technology sector, which supplies the majority of H-1B visa holders, potentially making it prohibitively expensive to hire foreign talent.
Unpacked:
The previous H-1B visa fee was $215. The new $100,000 annual fee represents a dramatic increase, making it much more expensive for companies to hire foreign workers under this program.
The fee will be charged annually for both renewals and new applicants. Companies must decide if an employee is valuable enough to justify paying the $100,000 per year, whether for first-time or renewal applications.
The administration claims the high fee ensures only 'very highly skilled' individuals are hired and discourages replacing American workers with foreign labor. The policy intends to push companies to train and hire Americans rather than relying on foreign workers.
Indian IT professionals, who make up about 71% of H-1B holders, and their employers are expected to face significant cost increases. For many companies, the fee could make hiring Indian talent in the US uneconomical, leading to reduced opportunities for Indian professionals.