For Indian professionals and global tech workers, the chances of securing an H-1B visa are set to change sharply from February 27, as the US moves away from its long-standing lottery system and adopts a wage-based selection process that favours higher-paid roles. The policy shift is expected to have a significant impact on early-career applicants and companies that rely on mid-level foreign talent.
The Trump administration will overhaul the H-1B visa allocation system by replacing the random lottery with a ranking mechanism based on salary levels. Applications will be prioritised according to offered wages, giving an edge to higher-paid positions, a move that could reshape hiring strategies in the technology sector and other industries dependent on skilled overseas workers.
The new rule comes just weeks before the annual spring H-1B filing season, a crucial recruitment window for US employers. The Trump administration has argued that the reform will ensure H-1B visas are awarded to workers who deliver the highest economic value, while discouraging the use of the programme for lower-paid or entry-level jobs.
The wage-based system follows other recent measures aimed at tightening skilled immigration. These include a presidential proclamation proposing a $1,00,000 fee for certain H-1B workers hired from outside the US, a move that is currently facing legal challenges. Together, these steps signal a tougher stance on the use of the H-1B programme.
Under US immigration law, H-1B visas are capped at 65,000 annually, with an additional 20,000 reserved for applicants holding advanced degrees from US universities. Demand has consistently exceeded supply, prompting the use of a lottery system for several years.
The Department of Homeland Security outlined the new framework in a proposed rule published on September 24. Since March 2020, employers have been using an electronic registration system. Under the revised process, wage details must also be submitted at the registration stage.
Selections will be based on the Occupational Employment and Wage Statistics survey, which classifies jobs into four wage levels, from Level I for entry-level roles to Level IV for highly experienced professionals. While candidates across all wage levels will remain eligible, higher-paid roles will enjoy a clear advantage, reducing the odds for lower-wage applicants.