By Priya Raghuvanshi

Copyright timesnownews

The National Association of Software and Services Companies (Nasscom) on Monday welcomed the US government’s clarification that the recent hike in H-1B visa fees will apply only as a one-time charge on fresh petitions starting 2026, and will not affect existing visa holders. This announcement has helped clear up uncertainties about eligibility and timelines, especially for H-1B holders currently outside the US. Nasscom highlighted that Indian and India-centric companies operating in the US have progressively cut back their reliance on H-1B visas, while simultaneously boosting local recruitment efforts. Data shows a significant drop in the number of H-1B visas issued to leading Indian firms, from 14,792 in 2015 to 10,162 in 2024. Currently, H-1B workers make up less than 1 per cent of the total employee base at the top 10 Indian and India-centric IT companies, leading Nasscom to anticipate only a marginal impact on the sector from the fee increase. “The clarification makes clear that the measure will not affect current visa holders and will apply as a one-time fee only to fresh petitions,” Nasscom stated, emphasising the reassurance this brings to the industry. Industry Investing In Local Hiring And Upskilling With the new fee coming into effect in 2026, companies have time to enhance their US-based workforce by investing in skilling programs and local hiring. Nasscom pointed out that the industry is already spending over $1 billion on upskilling and recruitment in the US, resulting in a considerable rise in local employees. Nasscom underscored that the H-1B visa remains vital for high-skilled worker mobility, filling critical skills gaps with salaries comparable to local hires. However, H-1B holders represent only a tiny fraction of the overall US workforce. Call For Stable Talent Mobility Policies The apex industry body reiterated its call for predictable and stable skilled talent mobility frameworks, which are essential for sustained innovation and economic growth. According to Nasscom, enabling smooth talent movement is crucial for business investments, accelerating research, and maintaining a competitive edge in the global innovation landscape. Context of Fee Hike And Industry Reaction The H-1B visa fee increase to $100,000 sparked initial chaos after President Donald Trump signed a proclamation raising the application cost. The fee varies between $2,000 and 5,000 depending on the employer. The announcement triggered confusion and anxiety among visa holders, especially those travelling outside the US, leading to disruptions at airports and widespread social media reactions. Indian tech professionals, who constitute over 70 per cent of H-1B visa holders, breathed a sigh of relief once the fee clarification was issued. Leading US companies receiving the most H-1B approvals for fiscal 2025 include Amazon (10,044), TCS (5,505), Microsoft (5,189), and Meta (5,123), among others.