The new H-1B visa controls will give the American tech companies an advantage over Indian IT firms.
The advantage is that US firms’ wage levels will be much higher than the IT services companies.
US siding with their own
The US Department of Homeland Security has introduced a new rule to select H-1B enrollments based on pay levels instead of the lottery process to preserve Americans’ jobs.
The revisions will apply to the 85,000 H-1B visas allotted every year using a lottery. This policy would provide American tech companies an advantage.
This edge is over Indian IT firms as their pay levels are much more expensive than that of IT services firms.
The significant changes by the US
According to data presented in the h1bdata.info, the median wage offered by social media center Facebook was $167,000. The median salary granted by Infosys Limited was $82,763 in 2020.
According to a brokerage company, HDFC securities median H-1B pay gives by IT services firms is at $89,000 in FY19.
The suggested changes will be free for comment ere implementation.
What does the change imply?
“Modifying the H-1B cap selection method by replacing the random selection means with a wage-level-based adaptation process is a better way. It is also easier to designate H-1Bs when demand surpasses supply,” the agency said in a statement.
The #H1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise https://t.co/YVxamcJhKo
— The Hindu (@the_hindu) October 29, 2020
Consequently, if finalized as intended, this new selection method would incentivize employers to offer more outstanding wages.
Though they can also petition for positions demanding higher-skilled workers instead of using the application to fill relatively lower-paid vacancies, the agency further appended.
The need for the change
The movement comes a week before elections and approximately three weeks after the Trump administration executed wage hikes and hardened the current H-1B rules.
The two governments would have a notable impact on the Indian tech workforce in the States.
“With this suggested rule, the Trump administration is proceeding to deliver on its commitment.”
“The commitment is to protect the American worker while stimulating the economy. The H-1B program is often misused and exploited by US employers, and their US clients, essentially seeking to hire foreign workers and pay cheaper wages,” said Acting DHS Deputy Secretary Ken Cuccinelli in the report.
“The current use of arbitrary selection to allocate H-1B visas makes it more difficult for businesses to plan their contracting. Which further declines to leverage the H-1B program to fight for the world’s best and brightest. Also, it hurts American workers by taking in relatively lower-paid foreign workers at the cost of the American workforce,” he added.
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