US visa rule change: Employers to bear ₹3.7 lakh H-1B, ₹4.2 lakh L-1 extension fees; What it means for Indians

Indian professionals working in the United States on H-1B and L-1 visas could be indirectly affected by higher immigration costs after the US expanded an existing fee to cover certain visa extension petitions filed by large employers.

Under rules published by the US government on Monday (August 10), eligible employers will have to pay a $4,000 fee (approx. ₹3.68 lakh) for H-1B extensions and $4,500 (approx. ₹4.2 lakh) for L-1 extensions. The new requirement will take effect on September 9.

The fees will be paid by employers rather than visa holders. However, the change could have a significant impact on Indian professionals because Indian IT services and consulting companies are major users of the H-1B and L-1 visa programmes.

Why Indian professionals could be affected

Major Indian IT companies and global consulting firms rely on a blended onshore-offshore staffing model, with thousands of Indian professionals deployed to the US on employment-based visas.

Previously, the 9-11 Response and Biometric Entry-Exit Fee applied to certain initial H-1B and L-1 petitions and cases where workers changed jobs. Under the expanded rule, eligible employers will also have to pay the fee when seeking extensions for existing employees.

This means that routine visa extensions for Indian professionals who remain with the same employer could now carry an additional cost for their companies.

For employers managing thousands of H-1B and L-1 workers, the additional expense could run into millions of dollars each year.

Who will have to pay the fee?

The expanded fee applies to employers with 50 or more employees in the US, provided that more than 50% of their workforce is in H-1B or L-1 nonimmigrant status.

This threshold means that large technology companies, IT services providers, consulting firms and multinational corporations with substantial numbers of foreign workers are likely to be among the businesses most affected.

The rule does not mean that every Indian H-1B or L-1 worker will personally have to pay the new fee. The employer is responsible for the charge.

However, higher sponsorship costs could influence companies' decisions around workforce deployment, visa renewals and the hiring or retention of foreign professionals.

H-1B, L-1 extension costs

Under the new rules:

H-1B extension: $4,000, roughly ₹3.7 lakh

L-1 extension: $4,500, roughly ₹4.2 lakh

The rupee figures are approximate and depend on the prevailing exchange rate.

Some filings are exempt

DHS has clarified that amended petitions that do not request an extension of status will not be subject to the expanded fee.

As a result, the new charges will not apply to every H-1B or L-1 filing. The fee will depend on the type of petition and whether the employer meets the workforce threshold specified under the rule.

US expects $157.3 million in annual revenue

DHS estimates that applying the $4,000 to $4,500 fee to eligible extension petitions will generate approximately $157.3 million annually.

The revenue is designated for the US Customs and Border Protection Air and Sea Biometric Entry-Exit System, an automated biometric tracking framework.