H-1B and L-1 visa extension fees: The United States has announced new rules that will require certain large employers to pay additional fees when extending H-1B and L-1 visas for their employees, a move expected to increase costs for major IT and consulting companies.

Under the new regulations, employers covered by the rule will have to pay $4,000 for each H-1B visa extension and $4,500 for each L-1 visa extension. Earlier these fees were generally charged when filing new visa petitions or when an employee changed jobs, rather than for routine extensions.

The changes are expected to have a significant impact on large Indian IT and consulting companies that employ thousands of professionals in the United States.


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According to the US Department of Homeland Security (DHS), the revised 9-11 Response and Biometric Entry-Exit Fee will come into effect on September 9. The rule will apply to employers that have 50 or more employees in the United States, where more than half of the workforce holds H-1B or L-1 visas.

This means technology companies, global consulting firms and IT service providers with a large number of foreign professionals will face higher visa-related expenses.

Companies to pay extra for visa extensions

The biggest change is that employers will now have to pay the additional fee whenever they seek to extend the visa of an existing employee.

Until now, companies generally did not have to pay this charge when applying for routine extensions for workers already employed in the country.

However, DHS has clarified that applications that do not request an extension of stay will not be subject to the higher fee.

Indian IT firms likely to be affected

Many of India's largest IT and consulting companies rely heavily on the H-1B and L-1 visa system to send engineers and professionals to work with clients in the United States. As a result, companies with thousands of Indian employees on these visas could see their annual immigration costs rise substantially.

Industry experts expect the rule to add millions of dollars in additional expenses for firms that regularly renew visas for large numbers of employees.

US govt expects $157.3 million in revenue

The US government estimates that the new fee structure will generate around $157.3 million every year. The money collected will be used to support the biometric entry-exit system operated by US Customs and Border Protection.

The fee was originally introduced by Congress in 2015 as part of efforts aimed at strengthening national security and improving the country's immigration monitoring systems.

Higher costs for technology and consulting companies

The revised rules are likely to increase the overall cost of employing foreign professionals in the United States, particularly for companies that depend heavily on skilled workers holding H-1B and L-1 visas.

For large Indian IT companies, which have thousands of engineers working in the US, the new extension fees could translate into a significant additional financial burden each year.

- With inputs from agencies

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