The U.S. government’s decision to impose a one-time $1,00,000 fee on new H-1B visa applications is expected to disproportionately affect young Indian women, according to analysis of FY24 data on visa beneficiaries. The hike, a steep jump from the current fee of a few thousand dollars, targets new applicants, leaving women entering the workforce particularly vulnerable.
Women Make Up Growing Share of New H-1B Applicants
H-1B visa holders have historically been predominantly male. In FY24, 74% of workers approved for continuing employment were men, while women accounted for only 26%. However, for initial employment (new H-1B holders), women represented 37%, showing their growing presence among fresh applicants.
With the new fee applying only to new beneficiaries, women face a heavier burden despite their increasing representation in the programme.
Salary Disparities Amplify the Impact
H-1B salaries for new workers are generally lower than those for continuing employees. Among initial employment beneficiaries in FY24:
- Bottom 25% earned about $77,000
- Median (50th percentile) earned $97,000
- Top 25% earned around $1,30,000 or more
Women earn less than men across all percentiles. For example, the bottom 25% of women earned $71,000 compared with $80,000 for men. At the median, women earned $91,000, while men earned $99,000. Even in the top quartile, women earned $1,25,000 compared with $1,31,000 for men.
Given that the new $100,000 fee could consume most or all of a new worker’s annual pay, sponsoring women becomes economically challenging for employers.
Skew Pronounced Among Indian Beneficiaries
Indians account for 60% of female and 75% of male H-1B workers, and the gender disparities in salary and age distribution are more pronounced among Indian women than those from China, where male and female representation is more balanced.
Among women approved for new jobs in FY24, 75% were under 35 years old, compared with 65% of men, meaning the entry cost hits younger women disproportionately. Educationally, 44% of women had a Master’s degree, compared with 39% of men, indicating that higher qualifications do not mitigate the financial burden.
Implications for the H-1B Programme
The hefty new fee could make sponsoring initial employment economically unviable for many companies, raising concerns about the programme’s future for new entrants, particularly women. Employers may increasingly prefer extending visas for existing employees rather than hiring new talent, potentially reducing opportunities for younger and highly qualified women applicants.