$100,000 Visa Fee: A Barrier or Just Another Business Cost?

A recent report suggests that even if the United States raises the H-1B visa fee to $100,000 — or even between $150,000 and $200,000 — companies are unlikely to halt the hiring of highly skilled foreign professionals. The study attributes this to the acute shortage of advanced talent in the US labour market. According to findings by the National Bureau of Economic Research (NBER), foreign employees on H-1B visas earn, on average, 16 percent less than comparable US-born workers with similar education, age, gender and job roles. While major firms such as Meta and Apple reportedly offer annual salaries averaging $150,000, Indian IT companies including Infosys, TCS, Wipro and HCLTech offer closer to $80,000. Wage gaps are significantly narrower in large American tech firms.

The report, authored by economist George Borjas, notes that nearly 75 percent of H-1B workers are employed outside the top 25 companies. Data indicates that around 46,184 companies hire at least one H-1B employee over a four-year period. Software developers account for 38.3 percent of H-1B workers, with nearly three-fourths concentrated in the top ten occupational roles. The study argues that even with higher visa fees, companies could save up to $100,000 over six years compared to hiring US citizens, making H-1B recruitment economically viable. However, firms may increasingly prioritise only highly specialised professionals if fees rise further.