After Trump’s shock move, companies may pass 30–70% of H-1B visa fee hike to clients, says Crisil
The decision of the Trump management to increase the H-1B visa fee to foreign workers to $ 100,000 will only have a minimum impact on the operating margins of Indian Information Technology (CT) service companies in the next financial year. The new wage, which has been valid since September 21, 2025, is estimated to reduce business margins only by 10-20 basis points from about 22 percent of last year.
The increasing cost is not expected to be completely absorbed by IT companies. Instead, they will probably share it with its customers with a transition rate that is probably estimated to be 30-70 percent. According to a Crisil Intelligence press release, this cost sharing regulation will help balance the financial impact on the profitability of companies.
Reduction of reassuring H-1B visas
Between 2017-2025, the press release said that the number of Indian employees in H-1B visas working for companies such as TCS, InfoS, Wipro and HCL technologies decreased from 34,507 to 17,997 and marked a negative compound annual growth rate at nine percent.
“BT companies have been decreasing for the last few years for H-1B visas. When the tendency increased to 24 percent, the companies began to expand their open sea delivery, to emphasize the open sea delivery in the United States, and despite the fact that it reached three percent in the USA and reached three percent in 2024,” he said.
Since H1-B requirements will be fulfilled so far, the effect of visa fee increase will not be reflected in the current financial year. It also does not include existing H1B visa holders and renewals.
Visa cost and employee expenses
Currently, visa expenses are very small of the total employee costs, between 0.02 and 0.05 percent, and H-1 B visa fees range from $ 2,000 to 5,000 dollars per person. However, the new wage structure can force companies to spend more.
The version said that approximately 35 percent of the H-1B applications approved from October 2023 to September 2024 are for the first employment. If this share remains constant in the next financial year, visa costs may rise to approximately 1 percent of total employee costs; However, if this share decreases, costs are expected to remain between 0.3 and 0.6 percent.
The impact of companies on income
India’s IT Services industry is expected to see a modest income increase of 2-4 percent in this financial year and reach $ 143-145 billion. Growth is expected to be only marginal or flat in the next financial year. Moment notified.
A few CT giants such as TCS, InfoS, Wipro and HCL produce 96 percent of their revenues from international markets and only the US contributes to 53 percent. Moment He said the report.
In India’s 2024 financial transfer, approximately 23 percent of $ 118.7 billion of subsidiaries come from the USA, the new visa fee is expected to affect the transfer. The visa fee increase is likely to reduce both entries and US share in the medium term.
In addition, it can accelerate offshoring and prevent students from carrying out higher work in the USA.
