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Indian IT companies to pay Rs 2.6 lakh more for every H-1B visa

Details published by a federal US agency say that flagship Indian IT companies would have to pay at least an additional $4,000 (Rs 2.60 lakh) for every H-1B visa application under the new regulations that came into effect last December.

India TV News Desk Updated on: May 27, 2016 13:39 IST
Indian IT companies to pay Rs 2.6 lakh more for every H-1B
Indian IT companies to pay Rs 2.6 lakh more for every H-1B visa

Washington: Details published by a federal US agency say that flagship Indian IT companies would have to pay at least an additional $4,000 (Rs 2.60 lakh) for every H-1B visa application under the new regulations that came into effect last December.

And those applying for L-1 visa petitions would have to pay $4,500 (Rs 2.92 lakh) more than other US companies under the new law, which would be in effect till September 30, 2025.

US federal Citizenship and Immigration Services (USCIS ) posted the details of the increased fee on its website today.

For H-1B petitioners, one "must pay the additional $4,000 fee" if the company employs 50 or more employees in the US and more than half of those are in H-1B, L-1A, or L-1B non-immigrant status.

The USCIS said the additional fees needs to be a paid in a separate cheque payable to the Department of Homeland Security. The federal agency also laid the parameters for counting the number of employees of the company.

"We will count all of your full-time and part-time employees when determining whether you must pay this fee. Employees of related entities will not count," USCIS said.

"When calculating the percentage of your employees in H-1B or L-1 status, we will calculate based on the number of employees you have in the United States, regardless of whether they are paid through a US or foreign payroll," USCIS said.

The H-1B visa is designed to allow US employers to recruit and employ foreign professionals in specialty occupations within the US while L-1 visas are available to employees of an international company with offices in both the US and abroad.

Indian IT firms -- which have to incur an additional burden of about $400 million annually -- have called it "discriminatory", with Prime Minister Narendra Modi himself raising this at the highest level.

Indian IT firms, -- which have to incur an additional burden of about $400 million annually, have called it ‘discriminatory’, with Prime Minister Narendra Modi himself raising this at the highest level during his US visit last year.

The special fee will apply to companies with 50 or more employees in the US and at least 50% of their employees on H-1B or L-1 visa, thus mainly affecting Indian IT companies which largely use the non-immigrant visas.

The previous outsourcing fee for H-1B visas, which are non-immigrant visas that allow US companies to employ foreign workers in speciality occupations, was $2,000, while the fee for L-1 visas, which are meant for intra-company transfers, was $2,250. These fees lapsed on 30 September.

With PTI Inputs

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