H-1B Visa Fee Increase Announced
The American administration led by President Donald Trump has increased the fee for applying for H-1B visas to $100,000. Trump stated that this action seeks to ensure highly skilled workers enter the nation. He further added that the action is connected to national security issues. The technology industry is not likely to resist this measure, according to him.
New Policy Details
Trump signed an executive order establishing the new fee level. The transition will be effective on September 21. The policy is likely to affect applicants from India and China the most.
Background of H-1B Visas
The H-1B program started in 1990 to enable U.S. businesses, particularly in the technology industry, to employ highly educated foreign professionals. Now:
- India comprises 71% of H-1B visa holders.
- China comprises 11.7%.
- Visas are granted for three to six years.
Financial Burden on Applicants
The new charge imposes significant expenses. Reports indicate:
- Approximately 60,000 Indians will be affected immediately.
- The total annual expense could be as high as $6 billion (₹53,000 crore).
- In the long term, the cost can increase up to ₹1.8 lakh crore.
Impact on Salaries and Recruitment
For several professionals, the visa cost might supersede income. Illustration:
- An engineer in the United States at the mid-level draws around $120,000 annually.
- Shelling out $100,000 for a visa fee translates to foregone almost 80% of income.
This will restrict opportunities for workers at the mid-level. Only high earners would be able to afford it. Usually, firms pay visa fees, but with increased costs, they would opt for not hiring foreign workers.
Impact on Indian Students and Professionals
Numerous Indians go for Masters and PhDs in the U.S. and then transition to H-1B visas. The increase in fees presents new challenges to them. Career options could become weaker, particularly for those dependent on employer sponsorship.
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