In September 2025, the United States introduced a seismic shift for global tech hiring: a hefty $100,000 fee for new H-1B visa applications. This policy disrupts how companies worldwide access coveted foreign talent, especially mid-level and emerging professionals.
For firms looking beyond traditional US hiring, solutions like RainTech's Employer of Record (EOR) have never been more essential.
Let's dive into how this fee reshapes recruitment, and why Indonesia's tech talent accessed via RainTech is the savvy alternative.
1.The $100,000 H-1B Fee: A Radical Policy Change
Previously, filing H-1B visa cost employers about $10,000 or less in fees and legal expenses. Suddenly, the federal government declared a minimum $100,000 fee per new petition, dramatically raising hiring costs. This serves as a gatekeeping measure that restricts entry mostly to high-wage earners, making it economically unfeasible for all but select candidates and companies.
Companies failing to pay this fee risk having petitions rejected or delayed indefinitely, forcing a rethink of US hiring pipelines altogether.
2.Impact on Mid-Level Talent and Startups
Most H-1B applicants have salaries far below the $225,000 threshold that justifies this new cost. According to recent data compiled by The New York Times, only around 5% of H-1B roles reach this salary level, meaning a vast majority of mid and entry-level roles become impractical via this visa route.
Startups and growing companies, which depend heavily on affordable international talent for innovation, find their growth plans throttled. The steep cost essentially freezes out many deserving candidates and destabilizes team-building efforts.
3.Smaller and Mid-Sized Businesses Disproportionately Affected
Unlike tech giants with vast budgets, mid-size firms cannot absorb an extra $100,000 per hire. With visa caps and rising costs, many are forced to scale back international hiring or seek alternatives.
This widening divide may increase market concentration, hurting industry dynamism and innovation ecosystems.
4.Increased Compliance Complexity and Legal Bottleneck
Implementing this new fee requires navigating changing legal interpretations, fee waivers, and eligibility criteria. Employers must carefully audit candidate salaries, job classifications, and filing timing to avoid audits or denials.
Such complexities add administrative burdens and delay crucial hires for critical roles, impacting global competitiveness.
5.Remote and Distributed Teams Gain Momentum
With visa-based on-site hiring barriers companies rapidly shift to hiring globally distributed remote workforces. This embraces cost-saving and talent diversification by enabling work anywhere.
Indonesia emerges strongly as a hub of highly skilled developers hungry for international collaboration but hired locally with full compliance assurance through platforms like RainTech's EOR.
6.RainTech's EOR: Bypassing Visa Costs with Strategic Local Hiring
RainTech offers a fully compliant Employer of Record solution in Indonesia, employing your chosen developers under local law and payroll. This means no visa fees, no US immigration risk, but access to tier-one tech talent ready to contribute remotely.
RainTech also handles labor contracts, tax withholdings, social security, and benefits, protecting employers and workers alike, all while maintaining legal compliance and hassle-free payroll operation.
7.Strategic Adaptation: How Companies Should Move Forward
Forward-thinking companies are reassessing hiring strategies in light of the visa fee hike. Building robust remote teams in countries like Indonesia becomes a core pillar of workforce expansion.
Partnering with RainTech gives immediate compliance assurance and access to one of APAC's fastest-growing tech talent pools without visa delays or costs. It's a win-win aligning cost, risk management, and quality.
Ready to Future-Proof Your Global Tech Team?
The $100,000 H-1B visa fee may seem like a roadblock, but it's also an opportunity to rethink and modernize hiring strategies. Don't get stuck paying arbitrary fees or losing talent to competitors.
Contact RainTech today to discover how our Employer of Record service unlocks Indonesian tech talent for your global projects effectively, compliantly, and affordably.
Explore these essential guides to deepen your understanding:
- Navigating Indonesian Payroll and Tax Compliance for Remote Employees
- How Remote Work Drives Cost Savings and Boost Business Impact in Indonesia
- Maximizing Cost Savings and Business Impact Through Remote Hiring in Indonesia
- Future of Work: How AI and Automation are Shaping Remote Hiring in Indonesia
References:
- USCIS H-1B FAQs, 2025: https://www.uscis.gov/newsroom/alerts/h-1b-faq
- Jason Walker, 2025: https://www.jw.com/news/insights-h1b-visa-program-proclamation/
- NY Times H-1B Salary Analysis, 2025: https://www.nytimes.com/interactive/2025/09/25/business/economy/h1b-visa-fee.html