H-1B, or not to be

The H-1B visa application fee hike can dampen hiring by US Big Tech and startups, but is unlikely to have significant impact on Indian IT companies

- By PAYAL GANGULY

Indian workers have dulled with the recent hike in H-1B visa fee. A proclamation by US President Donald Trump, which came into effect at 12:01 am (EDT) on September 21, levied a onetime fee of $100,000 on new H-1B visa applications from the previous fee of $1,000.

The move is one of the many announcements made by the US as part of its protectionist measures. Employers who sponsor H-1B visas to hire skilled workers will need documentation of the payment prior to filing petitions on behalf of the workers. While the announcement has caused some confusion, clarifications have indicated that the fee will be applicable only on the new H-1B visa lottery cycle, which will play out in FY27.

Indian IT companies will likely see an impact of nearly 6 percent EPS in the new financial year, according to multiple brokerage reports. Industry body NASSCOM said the change will have marginal impact on Indian and India-centric companies, as they have been reducing their dependence on H-1B visas.

The greatest impact will be on hires by US-based Big Tech companies such as Amazon, Google, Microsoft, Meta and Apple, which have steadily increased their share of H-1B hires over the years for specialised fields such as engineering, research and development. Amazon Services LLC topped the list of H-1B visa approvals in the first half of 2025, with 10,044 approvals till June 30, 2025, as per data sourced from the US Citizenship and Immigration Services (USCIS).

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