$100,000 Per Employee: How the H-1B Visa Fee Could Reshape Work Forces
Companies that wish to hire employees from other countries through the popular H-1B visa program now have to pay $100,000 per worker. This new fee, which took effect on Monday, will significantly impact the decision-making process for businesses considering using the program.
Due to the significant upfront costs associated with sponsoring a visa, employers need high-earning workers, who typically generate the most revenue, to justify the expense. Each visa generally lasts for three years, and economists estimate that the break-even salary for an employee who stays that long is around $225,000. If the visa is renewed for another three years, these costs are spread out, lowering the threshold to about $111,000.
In practice, the length of time an employee stays and their profitability to the company can vary significantly, making the new accounting even more complex.
H-1B applications by salary
Only 5 percent of H-1B applications were for jobs that paid more than $225,000 per year.
