India stands to impacted by the wage-based H-1B visa
As at present, India is the biggest beneficiary of the H-1B visa programme. Hence, stands to be affected the most by the proposed wage-based visa allocation.
The plans by the Trump administration to overhaul the existing H-1B lottery system favouring higher-skilled and higher-paid foreign workers stands to hurt entry-level talent, particularly the Indians.
In 2024, out of 399,395 approved H-1B visas, Indians accounted for a dominant 71%, while China followed far behind with only 11.7%.
Following the steep hike in the H-1B visa fee to $100,000, the US Department of Homeland Security (DHS) has now proposed replacing the random lottery with a weighted selection system that prioritises higher-paid applications.
If annual requests for the H-1B visas exceed the statutory limit of 85,000 or if demand surpasses supply, the allocation process would prioritise applications by employers paying higher wages.
Reportedly, the DHS has proposed changes prioritising applications of higher-paid foreign workers in the H-1B programme, but it doesn’t mean the visa allocation would only be based on salary. That process “would favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels,” the proposal said.
In accordance to a Bloomberg report, under the plan, applicants will be placed into four wage levels using Labour Department data. Those in the top wage level will get four chances in the selection pool, while those in the lowest level will get just one.
Since India benefits most from the H-1B visa programme, the citizens stand to lose the most from US President Donald Trump’s big-proposed changes, be it the $100,000 visa fee or the skill-level and wage-based allocation.
According to the Heritage Institute, a conservative think tank, entry-level workers from India and China in their mid-twenties filled most of H-1B positions, and worked on below-median wages. Sophie Alcorn, a Silicon Valley based immigration lawyer, also believes that the overhaul proposal stands to affect entry-level foreign workers the most.
The lawyer further added that having a wage-based lottery system would decrease total demand for skilled immigration, specifically affecting aspiring entry-level immigrants who are entry-level workers.
Following the $100,000 visa fee hike, the proposed changes to the H-1B allocation system come amid claims by US conservatives that companies misuse the program to hire cheaper foreign workers and undercut American talent.
Both the H-1B visa fee hike and the wage-based visa selection proposal are likely to be challenged legally.
Also Read: H-1B visa fee higher than annual salary of most H-1B visa holders
News Edit KV Raman
