H-1B Visa Fees in 2025 — What the $100,000 Shock Means for India’s IT Workforce

Introduction — a policy earthquake, not a tweak

On September 19, 2025, the U.S. administration signed a proclamation that imposes an unprecedented $100,000 annual fee per H-1B worker on sponsoring employers — a change that is orders of magnitude larger than the traditional registration and filing fees. Governments, employers, immigration lawyers, and impacted workers scrambled to assess the immediate legal, business, and human consequences. This piece breaks down the mechanics of H-1B fees, why this particular hike matters, and how India’s massive pool of H-1B beneficiaries and the country’s IT services firms are likely to respond.

How H-1B fees worked before 2025 (short primer)

H-1B petitions have long involved multiple fees primarily paid by employers: the lottery/registration fee, I-129 filing fee, ACWIA training fee, fraud-prevention fee, and—if desired—premium processing. Together, these usually amounted to a few thousand dollars per petition in most cases; some employers also face the Public Law 114-113 fee when they have large numbers of H-1B employees. Recent rule changes had already raised some filing fees compared with pre-2024 levels, but nothing approaching a six-figure annual employer charge.

What the $100,000 fee actually does (practical mechanics)

The headline is simple: for each H-1B worker an employer sponsors, the employer would now owe $100,000 per year for as long as that worker remains on H-1B under that employer (subject to the proclamation’s text and any implementing rules). That converts a previously modest administrative cost into a recurring, personnel-level tax. Because H-1B employment typically lasts multiple years, the present value of that surcharge per worker becomes extremely large — changing hiring economics dramatically for many roles.

Why the fee is such a game-changer for employers

Cost vs salary parity for junior hires. Many entry- and mid-level H-1B employees earn between roughly $60k–$120k in the U.S. Adding $100k annually to the employer’s bill can more than double the total cost for those hires, making routine hires uneconomical.

Massive fixed cost for large filers. Large tech firms and Indian services companies that sponsor thousands of H-1Bs could suddenly face multi-hundred-million-dollar bills — prompting immediate re-evaluation of on-site staffing.

Investment and startup effects. Startups and small firms that use H-1B talent will find six-figure surcharges per position infeasible, harming innovation where firms rely on a small number of highly specialized foreign hires.

Direct effects on India’s IT professionals

India supplies the single largest nationality cohort to the H-1B program. Because of that concentration, any policy that raises the cost of sponsoring H-1Bs hits Indian workers disproportionately.

Immediate worker-level impacts

Fewer new entries. Employers will likely cut the number of new H-1B petitions they submit, reducing the already competitive pool of opportunities for Indian applicants who depend on the annual cap and the lottery system.

Reduced mobility and transfer friction. H-1B holders currently in the U.S. could see fewer lateral job opportunities (employer changes or promotions) if companies pause transfers to avoid the six-figure charge.

Pressure on bargaining and conditions. Some employers may shift work offshore, shorten on-site assignments, or push contract structures that minimize on-shore headcount — reducing leverage for employees who previously used H-1B mobility to negotiate better pay and roles.

Medium-term human effects

Career path recalibration. Some skilled Indian professionals may pivot to remote roles, seek permanent residency routes in other countries (Canada, Australia), or opt to build domestically. That could dampen short-term migration to the U.S. while accelerating talent retention in India.

How India’s major IT services firms are likely to respond

India’s service providers — historically among the heaviest H-1B users — have several levers to pull.

Accelerate offshore delivery. With six-figure costs to place staff on client sites, firms will speed up remote delivery models from India and other low-cost locations. The marginal value of onsite presence must be extraordinarily high to justify the surcharge.

The Financial Express

Change commercial models. Expect offers and contracts to emphasize outcome-based pricing and offshore delivery, shrinking the fraction of billable hours performed on U.S. soil.

Absorb vs pass-through decisions. Some firms may absorb part of the cost temporarily to preserve client relationships, compressing margins; others will pass costs to clients, risking lost business or renegotiation.

The Financial Express

Strategic talent investments. To reduce dependency on U.S. placements, firms will invest in remote collaboration, automation, upskilling, and local hiring in client markets.

Wider economic and legal questions

Will domestic hiring increase? Supporters argue higher fees will incentivize employers to hire locally. In practice, substituting domestic workers for niche, experienced tech roles is neither instantaneous nor costless; many firms will respond by offshoring or automating rather than immediately sourcing domestic talent.

The Washington Post

Litigation and policy risk. A dramatic fee imposed by proclamation or administrative action invites legal challenges and congressional scrutiny. Immigration policy changes of this magnitude tend to face constitutional and statutory litigation — meaning the final outcome could change over months or years.

AP News

Global competition for talent. Countries like Canada and Australia have been actively improving skilled-migration pathways; impacted professionals may accelerate applications elsewhere, costing the U.S. in human capital over the medium term.

Practical steps for Indian professionals and firms

For individuals

Explore alternative immigration paths (skilled worker programs in Canada, Australia, or Europe).

Seek remote opportunities with U.S. employers that do not require relocation.

Upskill into roles with higher bargaining power (specialised cloud, AI, security), where employers might still justify on-shore placement.

For firms

Rework delivery models to minimize dependency on on-site staffing.

Renegotiate client contracts toward outcome-based pricing and longer-term strategic partnerships.

Advocate and litigate: industry associations will likely pursue legal challenges and policy engagement to moderate or reverse such sweeping changes.

Conclusion — a forced pivot, not the end of cross-border tech work

The $100,000 per-H-1B fee announced in September 2025 is a watershed moment — it turns a modest administrative cost into a recurring personnel tax and forces rapid rethinking of how high-skill technical work is organized globally. For India, the immediate effects will be fewer new U.S. placements, faster offshoring, and pressure on wages and mobility for certain categories of workers. For firms, the mandate accelerates strategic moves already underway: remote delivery, upskilling, automation, and contract redesign. Whether this policy remains in force, is modified by courts or Congress, or is partially rolled back, the near-term disruption is real — and it will reshape employer strategies and individual career decisions across both countries.