The United States has proposed a major change to how H-1B work visas are allocated, replacing the current lottery system with a wage-based selection process. This new approach would favor foreign workers offered higher salaries, giving them better chances of getting a visa compared to those with lower wages. The proposal, announced by the Department of Homeland Security (DHS), aims to address the high demand for H-1B visas which often exceeds the annual quota of 85,000 visas.

How the New System Works

Under the proposed system, visa applicants will be grouped into four wage levels based on data for typical salaries in their job and location. Applicants at the highest wage level would be entered into the visa selection pool four times, increasing their odds of selection. Those at the lowest wage level would be entered only once. Essentially, the more an employer offers to pay, the better the odds of the foreign worker obtaining an H-1B visa.

The wage levels correspond to certain percentiles of typical salaries, with Level IV being the top 25-36% earners, and Level I covering the bottom 17-34%. This means high-paid roles in tech or specialized industries would have significantly higher chances, while entry-level or lower-paid roles could see a substantial decrease in chances of visa selection.

Recent Changes and Context

The wage-based lottery reform comes shortly after the Trump administration introduced a $100,000 fee for new H-1B visa applications, intended to discourage lower-paid visa petitions and reduce gaming of the system. The administration's narrative is that these steps protect American workers by reducing wage competition from foreign workers hired at lower rates.

This proposal is not entirely new. Similar ideas were floated during Trump’s earlier presidency but faced legal and political obstacles before being withdrawn. The current proposal reflects a sustained effort to prioritize high-skilled, high-wage foreign workers and ensure the H-1B program benefits U.S. economic interests more clearly.

If implemented, this system could reshape the landscape of U.S. immigration work permits for technology and specialized industries. Larger companies able to offer competitive salaries will likely retain an advantage in hiring global talent. Meanwhile, companies that traditionally depended on lower-cost foreign workers, such as many outsourcing firms, might face more challenges.

One notable consequence could be a tilt toward more senior and well-paid foreign professionals, potentially making it harder for recent graduates and early-career workers to enter the U.S. The policy could also incentivize employers to raise wages to improve their chances in the allocation process.

While proponents argue the change aligns the visa system with market realities and protects local jobs, critics worry it may limit opportunities for talented newcomers, especially those just starting their careers or working in lower-paying sectors. Indian workers, who form the largest group of H-1B recipients, especially at the entry level, might see reduced chances under this wage-weighted system.

The proposed wage-based selection system for H-1B visas represents a significant shift aimed at aligning visa issuance with pay scales and skill levels. It seeks to favor higher-paid foreign workers while maintaining some access for lower-wage categories, albeit with reduced chances. The policy reflects broader ongoing reforms to prioritize economic benefits for the U.S. while managing high demand for these visas. However, its impact on the diversity of foreign talent, entry-level opportunities, and the outsourcing industry will be closely watched as the proposal moves through review and potential implementation in the coming years.

With inputs from agencies

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