U.S. set to impose special fees for H1 B, L1 visas

A bipartisan Bill that the U.S. Congress is set to pass on Friday will impose a special fees of $4,000 and $4,500 for H1B and L1 visas respectively in such a way that Indian IT companies will be the worst affected. Democrats and Republicans reached an agreement on the omnibus spending Bill on a day Prime Minister Narendra Modi shared his concerns about the proposal with President Barack Obama.

India companies to be hit

The new fees will be applicable to companies that have at least 50 employees, and more than 50 per cent of them are on non-immigrant H1 B and L1 visas. It will mean Indian companies operating in the U.S – such as TCS and Wipro — will be affected by it, while American companies will have only a fraction of their employees on non-immigrant visas and would stay under the 50 per cent threshold.

Also read: Nasscom terms U.S. bill as unfair and discriminatory

Though the U.S. began charging a fee of $2000 for H1 B visas in 2010, the number of people taking it has only been on the rise. The 2010 bill lapsed on October 1. The new bill, though terming the fees to be “temporary”, will be valid for ten years, up to 2025. According NASSCOM, the $2000 fees raised for the U.S. $70-80 million every year.

“The Prime Minister shared with President Obama the concerns of the Indian IT industry and professionals on the proposed legislation in the U.S. Congress relating to H1B and L1 visas,” a statement issued by the PMO said.

Part of the money raised through the special fees will fund the health care for 9/11 first responders under the 9/11 Health and Compensation Act. Part of it will fund a biometric entry and exit data system under the Department of Homeland Security.

The H1B visa is a non-immigrant visa that allows U.S. companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields.

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Source:Thehindu