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US H-1B Visa Fee Increase: Implications for Indian Professionals and Job Seekers

The US government has raised the H-1B visa fee to $100,000, impacting new applications. This change may lead to reduced job opportunities for Indian professionals and students, as companies may prioritize local graduates. Explore alternative visa options and the broader implications for the job market in this comprehensive overview.
 

Overview of the H-1B Visa Fee Increase


The United States government has raised the fee for H-1B visas to $100,000, which is roughly ₹8.8 million. This adjustment affects only new visa applications and has been enacted following an order from President Donald Trump. However, there are instances where the fee may be waived if deemed necessary for national interests. The H-1B visa plays a vital role for skilled professionals and specialists who come to work in American hospitals and IT firms, particularly in underserved regions where local talent is scarce.


Consequences of the Fee Increase

Industry Response
NASSCOM, the leading organization in the IT sector, has noted a decline in Indian companies' dependence on H-1B visas in recent years. The number of H-1B visas issued to Indian applicants was 14,792 in 2015, but this figure is projected to fall to 10,162 by 2024. NASSCOM emphasizes that the new fees will only impact new applications and will not affect those who currently hold visas. Furthermore, employees on H-1B visas earn salaries comparable to their local counterparts, representing less than one percent of the workforce in major corporations.


Alternative Visa Options Post Fee Increase

Shifts in Visa Preferences
In light of the increased H-1B visa fees, many organizations are now opting for L-1 visas, which are designated for employees already working with the company who wish to transfer to the US. This requires a minimum of one year of employment with the company and a position that necessitates specialized knowledge. Additionally, the O-1 visa is available for individuals with extraordinary talent, while the J-1 visa caters to trainees and interns. The EB-1A visa also allows for employment in the US and provides a direct pathway to a green card for exceptionally talented professionals. Moreover, international students who complete their education in the US can work for up to three years under the STEM OPT program.


Effects on International Students

Job Market Implications
The increase in H-1B visa fees may adversely affect entry-level job opportunities. Companies are likely to prioritize hiring local or American graduates, which could limit job prospects for Indian students. As a result, many Indian graduates are exploring employment opportunities in countries such as Japan, Ireland, Canada, and various European nations.