A new rule of selecting H-1B visas has been proposed by the US Department of Homeland Security. According to the latest guidelines, the registration on this type of visa will be based on wage levels instead of the lottery process. This initiative has been taken to save the jobs of American workers. Also, this change will apply to those 85,000 H-1B visa that were processed every year through the lottery system. This new transformation will be providing the American tech firms with an area to perform better than the Indian companies because their levels of wages are higher than that of the companies which belong to the IT industry.
The data provided in the h1bdata.info says that $167000 was the median salary provided by Facebook’s social media major. And, in the year 2020, Infosys offered a median salary of $82763.
These changes that have been brought by the US department will be opened for comment before the implementation. According to a statement by the agency related to the modifications made in the selection process of the H-1B visa, the “level-based selection process is a better way to allocate H-1B when demand exceeds supply”. The agency even stated that if the proposed changes are finalized, then it would allow incentivizing employers so that they can provide higher positions or wages to skilled workers rather than looking after the lower-paid workers.
Acting DHS Deputy Secretary Ken Cuccinelli said in his statement, “With this proposed rule, the Trump administration is continuing to deliver on its promise to protect the American worker while strengthening the economy. The H-1B program is often exploited and abused by U.S. employers, and their U.S. clients, primarily seeking to hire foreign workers and pay lower wages. The current use of random selection to allocate H-1B visas makes it harder for businesses to plan their hiring, fails to leverage the H-1B program to truly compete for the world’s best and brightest, and hurts American workers by bringing in relatively lower-paid foreign labour at the expense of the American workforce.”
This movie has been publicized three weeks after the Trump government decided three weeks before implementing a hike on the wages and a week before the elections. These new guidelines would have a major impact on the Indian tech companies established in the US.