With US hiking steep $100,000 fee on new H-1B visas for foreign workers, the question is how would it impact the margins for the IT sector companies. Well, Crisil highlights that the impact won’t be much. The rating agency noted that it will trim only 10-20 basis points operating margins of Indian IT services firms by next fiscal.

Visa costs may rise from negligible to 1% of wage bill

Crisil noted that visa costs will still remain small compared to overall salaries. Employee costs accounted for 55–57% of sales last fiscal, while visa -related expenses were negligible at 0.02–0.05% of the total wage bill. H-1B visa fees currently range between $2,000 -5,000 per person. If 35% of applications continue to be for new jobs, as in 2023–2024, the new $100,000 levy could push visa costs to a

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