News: H1B and L1 Fee increase by 2000 – Impact to Indian IT Companies

In H1B Visa by KumarUpdated : 4 Comments

Recently few days ago senate passed a bill that says H1B visa fee increase by $2000… As I was reading economic times today,  they highlights the impact of the H1B and L1 fee increase to Indian software companies.  The tricky part is, American based companies like Microsoft and Intel are not impacted by this because they do not have  over 50% of temporary workers.

Update – December 2015 : The below ruling of $2000 fee increase expired on September 30, 2015. But, in December 2015, a new ruling was passed that increases H1B and L1 Fee for the same set of employer by $4000 and $4500, impacting much more than the below listed bill.

Summary of the impact to Indian Software companies :

  • Nasscom reports, the increase will cost Indian Companies by $200 to $250 Million per year.
  • As most of the Indian outsourcing companies have 70% to 80% of temporary workers on H1B and L1 visa, the H1B fee increase will heavily impact all these companies and especially like TCS, Infosys, and Wipro because they send around 10,000 professionals every year
  • Indian IT Companies are not happy to pay for the border protection of US and say that it is not compliant with World Trade Organization fair practices.
  • The biggest burden is companies have to deal with the cost for new applications, renewals and transfers. If you think of it, it is a huge cost.
  • Infosys, Wipro and other stocks were slightly ( 0.3 %) down today with the news of H1B fee increase. Infosys already spent $16 million in visa expenses until now this year.

Still the bill is not yet completely passed and signed. It has to be passed by the House of Representatives. They plan to vote on this on tomorrow (Tuesday, August 10th ). There is another bill related to this and House may   consolidate the $701 million bill with the $600 million bill. We just have to wait and see.

Read the full article posted few days ago for Original press release and Video :  H1B and L1 fee increase by $2000

News Articles on the H1B and L1 $2000 Fee increase:

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Comments ( 4 )

  1. Jimmy

    The Canadian government should impose this 2000$ fee as well! It may be bad news for Indian companies but Indian companies take advantage of their poor people and replace American and Canadian workers so new laws or fees need to be put in place.

    It wont be long before indian companies find another loop hole somewhere else… so don’t feel bad for them.

  2. Arijit

    Okay!! So what does it mean??? There won’t be as much demand for Indian IT workers in US at it previously was???

    Oh Sh!t man!!! This is all because of that goddamn friggin’ guy called Obama!!!

    I wanna see him get off the chair….

    1. Evol

      I don’t think you have any position to make that call. It is true that Indian companies have taken full advantage of system that caused many Americans in IT field lose their jobs and other foreign workers cannot obtain their H1B VISA. It is time to give somebody else a chance.

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