The Trump administration has moved a step closer to overhauling the H-1B visa selection process, with a proposal to replace the current lottery system with a wage-based selection method. Recently cleared by a key White House office, this change could significantly affect Indian IT services companies, especially when it comes to hiring early-career professionals.
Priority for Higher-Paid, Niche-Skilled Applicants
Under the proposed rule, top-paid applicants in the highest wage bracket (Level 4) would be given priority in H-1B visa selection. This would likely sideline most early-career tech workers, who typically fall into the lower wage brackets (Level 1 and 2). According to Pareekh Jain, CEO of Pareekh Consulting and EIIRTrend, an estimated 20,000–25,000 professionals in these categories could be impacted.
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Possible Shift in Hiring Strategies
If the plan is implemented, Indian IT companies may have to rely more on local hiring in the US, automation, and remote delivery models to fill gaps. The proposed changes will soon be released for public review before any final decision is made.
Understanding the H-1B Program
The H-1B visa allows US companies to employ foreign professionals in specialty occupations such as science, technology, engineering, mathematics (STEM), and IT. The annual quota is 85,000 visas, including 65,000 under the regular cap and 20,000 for candidates with a US master’s degree or higher. Currently, applicants must earn at least $60,000 annually to qualify.
Limited Impact on Senior Roles
While early-career employees may face challenges under the new rule, senior professionals with niche skills and higher salaries are expected to benefit from the prioritization. However, for many Indian IT firms, the talent pipeline for fresh graduates and junior engineers could be disrupted.
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