H-1B visa fee hike: Who will pay $1,00,000 visa fee, employee or employer? Here's all you need to know

In a latest crackdown on immigration, US President Donald Trump on Friday signed a proclamation that will raise the fee for H1-B visas to $100,000 every year, effective from September 21. This decision has sent shockwaves across tech companies, who are asking employees with the H-1B and H-4 visas to return to the United States ahead of the deadline.

Now, the question is who will bear the cost of this massive fee hike, the sponsoring employers or the employees?

Who will pay for the H-1B fee hike?

The H-1B programme grants 65,000 visas each year to employers hiring temporary foreign workers in specialised fields, along with an additional 20,000 visas for workers with advanced degrees.

Almost all visa fees must be paid by employers. The H-1B visas are granted for a period of three to six years, according to a report by Reuters.

According to the executive order Trump signed on Friday, he claimed that some employers have exploited the program to hold down wages, disadvantaging the workers in the United States.

Major impact on tech companies

Trump's fee hike on H-1B visas is likely to have a major impact on the tech industry, which contributed millions of dollars to his presidential campaign.

Microsoft, JPMorgan, and Amazon have advised employees holding H-1B visas to stay in the US following the announcement, Reuters reported citing internal e-mails.

They asked H-1 B visa workers outside the US to return by midnight on Saturday (0400 GMT on Sunday), when the new fee structures will come into effect.

"H-1B visa holders who are currently in the US should remain in the U.S. and avoid international travel until the government issues clear travel guidance," the report quoted an email sent to JPMorgan employees.

Trump's crackdown on immigration

After taking office in January, Trump has launched a broad immigration crackdown. The move to overhaul the H-1B visa programme is his administration's most high-profile attempt yet to reshape temporary work visas.

"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land," said Commerce Secretary Howard Lutnick. “Train Americans. Stop bringing in people to take our jobs,” he added.