Former Infosys CFO Mohandas Pai expressed concerns on Saturday that the US government’s imposition of a $100,000 fee for new H-1B visa applications could majorly reduce fresh filings and push companies towards increased offshoring in the coming months. The fee applies only to the new applications; current H-1 B visa holders are affected, he pointed out.
New rules applicable to fresh visa applications
President Donald Trump signed the proclamation, claiming the H-1B programme, meant to bring in high-skilled labour, has frequently been misused to replace US workers with cheaper foreign labour. Pai explained that the salaries paid by top H-1B employers already surpass $100,000, arguing that suggestions of cheap labour are misleading.
“People pay more than $100,000 as salaries… if they pay their staff $100,000, they charge their clients $150,000-160,000, so all these ideas of sending cheap, low-skilled people don’t hold water,’’ he stated to PTI.
An industry expert quoted by PTI evaluates that Indian tech firms usually apply for between 8,000-12,00 fresh H-1B visas on a yearly basis. Global tech players like Amazon, Apple, Meta, and Microsoft are also heavily dependent on the programme.
As per data from USCIS for fiscal year 2025, Amazon is leading the list with 10,044 H-1B approvals, followed by TCS with 5,505. In the third slot is Microsoft with 5,189, and Meta is in fourth position with 5,123 approvals.
Cost drive may shift IT operations outside the US
Pai further underlined, “It has got limited application, because it doesn’t apply to all the H-1B visas which are already there. So there could be a limited impact for anybody applying in future; new applications will come down. Nobody’s going to pay $100, 000 that is very true.”
With high visa costs, firms may find it more feasible to shift more operations offshore, a trend that could gain more momentum over the next 6-12 months, as per Pai.
US President Trump signed the executive order titled “Restriction on Entry of Certain Alien Nonimmigrant Workers”. The order states that any H-1B petition filed for a worker staying outside the United States must be accompanied by a $100,000 fee to gain approval, as per the White House’s fact sheets. Existing visa holders will be exempted from these norms. The order will be effective from 12:01 am on September 21, 2025, and it will remain in force for 12 months, subject to extension.
The move is likely to impact startups and smaller tech firms that are dependent on hiring international talent.