Washington DC:
Amid the ongoing debate over H-1B visas in the United States, the prospective applicants and their employers are bracing for the intricate costs tied to the coveted work permit, starting from fiscal year 2025. The H-1B program allows US-based companies to bring in skilled workers from abroad into certain industries, but it comes with hefty fees that vary depending on the type of petition being filed and the status of the employer.
Moreover, a new rule also came into effect in 2025 which will allow entrepreneurs to sponsor themselves for the H1B visa. This means that entrepreneurs establishing a tech company in the US can self-sponsor, provided they meet the eligibility criteria for the visa, such as having specialised knowledge.
Till now, individuals were not considered eligible for H-1B visas unless they could demonstrate employment with a sponsoring organisation. It made getting an employment permit difficult for entrepreneurs who wanted to launch their ventures independently.
H-1B Visa Application Fee
Registration Fee: To be part of the H-1B lottery, applicants are required to pay a registration fee of $10, a figure that has remained unchanged since 2024. This marks the first step for prospective applicants during the initial registration period, which typically occurs in March each year.
Filing Fees: Further, the employers have to pay $460 as a base filing fee for all H-1B petitions. To top it, an anti-fraud fee of $500 is mandatory for all initial and change of employer petitions, to prevent fraud and misuse of the H-1B program.
Employer Surcharge: Companies with more than 50 employees, half of whom hold H-1B or L-1 visas, are required to pay a $4,000 fee under the Consolidated Appropriations Act, 2016. This surcharge remains in effect until September 30 2025.
Premium Processing (Optional): Employers who are in a rush to hire an overseas employee can opt to expedite the processing of their H-1B petitions to just 15 calendar days by paying a premium processing fee of $2,805. This service is a necessity for critical hires in time-sensitive industries.
Who Pays What?
In the H-1B visa application process, the majority of the financial burden typically falls on the shoulders of the employer. An additional $4,000 employer fee also lies squarely with them. However, there are specific rules through which visa stamping and interview-related fees may be passed on to the employees.
Total Estimated Costs
Here’s an estimated cost breakdown of the total cost of applying for an H-1B visa:
For companies not subjected to the additional $4,000 fee — $10 (Registration Fee) + $460 (Base Filing Fee) + $500 (Anti-Fraud Fee) = $970
For companies subjected to the additional $4,000 fee– $10 (Registration Fee) + $460 (Base Filing Fee) + $500 (Anti-Fraud Fee) + $4,000 (Additional Employer Fee) = $4,970
For Premium Processing– A $2,805 is added for expedited processing, bringing the total for employers opting for premium processing to $3,775 or $7,775, depending on employer status.
Debate Over H-1b Visa In US
Three weeks ahead of US President-elect Donald Trump’s inauguration on January 20, the debate on the H-1B visa program has intensified, literally creating divisions in both the Democratic and the Republican parties.
Indians are the main beneficiaries of the H-1B visas, which bring in the best of the talent and brains from across the world. Highly skilled professionals from India walk away with the overwhelming number of H-1B visas – which is Congressional mandated 65,0000 every year and another 20,000 for those who received higher education from the US.
President-elect Donald Trump has come out in support of the H-1B, and so have two of his close confidants, Tesla owner Elon Musk and entrepreneur Vivek Ramaswamy, both of whom have been tasked to head the newly created Department of Government Efficiency.
However, they are facing a backlash from the supporters of Mr Trump who argued that this is eating away at the jobs of Americans. Moreover, on Thursday, influential Democratic Senator Bernie Sanders also asserted that the two close confidants of Trump are wrong.
“Elon Musk and a number of other billionaire tech company owners have argued that this federal programme is vital to our economy because of the scarcity of highly skilled American engineers and other tech workers. I disagree.
“The main function of the H-1B visa programme and other guest worker initiatives is not to hire ‘the best and the brightest’, but rather to replace good-paying American jobs with low-wage indentured servants from abroad. The cheaper the labour they hire, the more money the billionaires make,” Sanders said on Thursday.
