Latest H-1B Visa Update 2025: What It Means for Indian Professionals

US Raises H-1B Visa Fee to $100,000

Trump's administration just implemented the most expensive H-1B visa change in history. Employers must now pay a one-time payment of $100,000 per new petition - up from the previous $2,000 to $5,000 range.

What does the new fee cover and who pays it?

The $100,000 fee applies to specific situations:

• New H-1B petitions filed after the effective date
• Petitions for workers currently outside the United States
• Applications for the upcoming 2026 H-1B lottery

Small businesses face the biggest challenge.

"If you're a startup with new technology, and you've got some venture capital money but you're worried about burning through it too quickly, this could kill you," noted John Skrentny, a professor studying STEM workforce development.

When does the new rule start?

The policy took effect at 12:01 a.m. Eastern Daylight Time on September 21, 2025. You have 12 months before it expires, unless extended.

There's one catch: no payment mechanism exists yet with either the Department of Homeland Security or Department of State.

Which visas are exempt from the fee?

You won't pay the fee if:

• Your H-1B was approved before September 21, 2025
• You're renewing or extending your current H-1B
• You're traveling abroad with an existing H-1B
• You qualify as being "in the national interest"

The Department of Labor will also raise prevailing wage levels to "upskill the H-1B program and ensure that it is used to hire only the best of the best temporary foreign workers". DHS plans to prioritize high-skilled, high-paid applicants over lower wage levels.

Economist Atakan Bakiskan warns:

"With the new H-1B policy, the labor force is more likely to shrink than expand going forward".

How Does the New Wage-Based Selection Work?

The fee increase isn't the only change hitting your H-1B prospects. The administration ditched the decades-old random lottery system for a wage-based selection model that explicitly favors higher-paid workers.

What replaces the current lottery system?

Your selection odds now depend entirely on your salary level. When applications exceed the annual 85,000 visa cap, the new weighted system enters registrations multiple times based on Department of Labor wage levels:

• Level IV (highest paid) registrations enter four times
• Level III registrations enter three times
• Level II registrations enter twice
• Level I (entry-level) registrations enter once

This structure gives higher-wage applicants multiple chances at selection. DHS estimates show Level IV registrations would see a 107% increase in selection probability, while Level I registrations face a 48% decrease in odds.

What does this mean if you're an early-career professional?

Your prospects just got significantly harder. The policy shift cuts opportunities for recent graduates and entry-level workers seeking US employment. Business groups warn this approach will "eliminate prospects for employers to hire early-career professionals who've recently graduated from U.S. colleges and universities".

Why is the Department of Labor raising wage requirements?

DHS claims "salary generally is a reasonable proxy for skill level" and wants to "incentivize employers to offer higher wages or higher skilled positions". Officials argue this protects American wages while directing visas toward genuine talent shortages.

Critics disagree. They point out wage levels vary dramatically by location. A computer engineer position requiring $144,000 in Plano, Texas gets Level 4 classification, but the same role in San Jose, California needs $265,000 to achieve that designation.

Research your target role's prevailing wage in your preferred location before applying. Consider whether your experience level and salary expectations align with the new selection preferences.

Indian IT Firms Brace for Workforce Disruption

Major Indian IT companies have already started moving away from H-1B dependency. The numbers tell the story: between 2017 and 2025, TCS, Infosys, Wipro, and HCL Technologies nearly halved their H-1B workforce, from 34,507 to 17,997.

How Infosys, TCS, and Wipro are responding

Infosys faces the highest exposure with 3.3% of its workforce on H-1B visas, while TCS sits at 2.2%. The financial impact is significant—Infosys generates 11.5% of its revenue from H-1B visa employees, compared to TCS's 7.7%.

These companies are now fast-tracking four key strategies:

• Increasing local hiring in the US
• Using subcontractors for project delivery
• Near-shoring operations to Canada and Mexico
• Expanding offshore delivery capabilities

What happens to pending and to-be-filed petitions

Good news if your petition is already in the system. H-1B petitions filed before September 21, 2025, dodge the new fee requirements. Even petitions still waiting for USCIS approval remain unaffected.

Future filings after this date require the $100,000 payment.

How the new rules affect H-1B visa status and renewals

H-1B renewals are completely exempt from the new fee structure. You can also switch employers once your new employer files a legitimate H-1B petition.

If you lose your job, you get a 60-day grace period to find new sponsorship, change your visa status, or leave the country. Use this time wisely to explore your options with other employers or visa categories.

What Are Economists Saying About These H-1B Changes?

Economic experts are raising red flags about the long-term consequences. JPMorgan economists project the US could lose 5,500 work authorizations monthly due to the $100,000 fee.

The numbers tell a concerning story. Research shows H-1B workers drove 30-50% of US productivity growth from 1990 to 2010. Berenberg economist Atakan Bakiskan calls this "anti-growth policymaking" that will "weigh heavily on productivity".

JPMorgan's analysis warns this change could make the US "less attractive for foreign students to come to the United States to study". You're looking at potential brain drain on a massive scale.

Which Countries Are Capitalizing on America's Loss?

Smart nations are already moving fast to attract talent. Here's what you should know:

• Canada: Prime Minister Mark Carney explicitly targets "people who previously would've got so-called H-1B visas"
• Germany: Increased skilled visa offerings for Indians from 20,000 to 90,000, removing salary requirements and German language prerequisites
• UK: Exploring complete visa fee elimination for top global talent

These countries recognize what America is giving up. You now have viable alternatives if US visa policies block your path.

How Will This Affect Future H-1B Lottery Results?

The math is stark. Companies submitted over 480,000 applications for fiscal 2024 - more than double from five years ago. Yet the quota stays at 85,000 visas annually.

Early-career professionals face the biggest challenge. With wage-based selection favoring higher salaries and the $100,000 fee deterring employers from sponsoring junior roles, your odds just got significantly worse.

What to do next: Start researching alternative countries and their visa programs now, before competition increases.

Conclusion

The $100,000 H-1B fee and wage-based selection system fundamentally change your visa strategy. You need to act now: if you're currently in the US on H-1B status, focus on renewal applications which remain exempt from the new fee.

Recent graduates should consider alternative countries like Canada, Germany, or the UK that are actively recruiting skilled Indian professionals. For those planning future applications, target higher-wage positions to improve selection odds under the new weighted system.

Most importantly, diversify your international career options beyond America - the days of relying solely on H-1B visas for US opportunities are ending. Start exploring these alternative pathways today before competition intensifies further.