H-1B Visa: How the proposed changes can affect Indians?

New bill H-1B Visa H1B Visa
Pic Courtesy - The Y-Axis Blog

It is not going to be a great time for Non-Americans in Trump ruled America! The new bill H-1B visa could seriously affect the exporters of IT workforce to The United States, wherein India is the leading IT exporter followed by China.

The big Indian IT companies enjoy significant cost reductions by sending their employees to the US, but not anymore! The new bill proposes a change in the minimum salary cap from $60000 to $1,30,000 which hugely hits the IT firms in India.

H-1B Visa: What is it?
H-1B visa belongs to the non-immigrant category of visa that is issued for temporary workers based on their employment. The employer provides the job to the person and also apply for the visa process with the US Immigration Department.

Trump’s administration: Proposed changes on H-1B norms

  • Salaries of H-1B visa holders to be doubled.The minimum salary cap of $60,000 changed to $1,30,000
  • Spouse of H1B visa holders will be prohibited from working in The United States
  • 20% of the visa applications should be earmarked for small entrepreneurs and start-up companies
  • To ensure equal distribution of employment, the ‘per country’ cap will be removed
  • Companies looking for H1B visa holders should recruit the Americans first
  • Students graduated in the US will get the first preference
  • Companies that have more than 50 employees in H1B and L1 visa categories will be restricted to hire additional employees
  • A strict audit team employed by the department of labor will monitor the fraud and misuse of the visa.

Why and how India is affected? The Indian Impact!

Do you know that the biggest beneficiaries of the H-1B visas are the Indians? In 2014, more than 70% of the approved visa belongs to India. If the new bill becomes a law, it would impact the Indian outsourcing firms like Infosys, Wipro, Tata Consultancy service, Cognizant and other information technology companies. The stock prices of the IT companies already fell by 9% in the reaction to this news.
Will this not affect America?

The skilled employees who visit US with the H-1B visa do not just contribute to the IT development but they indirectly support other industries too. Most of these workers travel with their family who engages themselves in various other businesses improving the economy of the US. So, the new bill can have a huge impact on the business development and economy of The United States.

However, we still do not know the outcome of the bill. Let’s keep waiting to know what’s on the table!


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