GS2 INTERNATIONAL RELATIONS
Overview
A proposed move by the United States to raise annual H-1B visa fees to $100,000 could severely impact Indian tech professionals, who make up the largest share of H-1B visa holders but earn comparatively lower salaries.
Indian Workforce Most Impacted
- 71% of H-1B visas issued in FY 2023–24 went to Indian nationals, making them the most affected demographic.
- Around 60% of Indian H-1B visa holders earn less than $100,000 annually, placing them below the newly proposed fee limit.
- The median salary of Indian H-1B workers was $95,500 in 2024, significantly lower than the $120,000 median salary of non-Indian H-1B workers.
Key Concerns of the Proposed Rule
- The current H-1B fee ranges between $2,000–$5,000, but the proposed rule would increase it to $100,000 annually.
- For a standard three-year H-1B visa, workers may need to pay up to $300,000, posing a financial barrier to migration.
- The heaviest impact would be on entry-level Indian tech workers, a majority of whom fall within the $75,000–$100,000 salary range.
Source Analysis
- Findings are based on Bloomberg’s open dataset on 2024 H-1B filings, highlighting a significant wage disparity between Indian and non-Indian visa holders.
- The analysis raises questions about economic fairness and the feasibility of continued skilled migration to the U.S.
H-1B Visa Program Context
- The H-1B visa enables U.S. employers to hire foreign professionals in specialised sectors such as IT, engineering, research, medicine, and finance.
- The U.S. administration argues that the steep fee hike will reduce dependency on cheaper foreign labour and protect American jobs.
- Critics argue the decision could disrupt the global tech talent chain and pressure India-U.S. economic ties.