US Adopts New Pay-Based System for H-1B Visa, Impacting Indian Applicants

Post by : Mina Rahman

The administration under Donald Trump has unveiled significant changes to the H-1B visa program in the United States. The existing lottery system will be replaced by a weighted selection method that favours skilled foreign workers earning higher salaries. This shift is likely to diminish the chances for newcomers, notably many from India.

Effective February 27, 2026, this new rule will be implemented during the fiscal year 2027 H-1B registration period. Annually, around 85,000 H-1B visas are issued.

According to US Citizenship and Immigration Services, employers have exploited the random lottery system to recruit foreign personnel at lower pay rates. The revised process will give priority to applications that offer better salaries for specialised positions.

A spokesperson for the government commented that the intended goal is to safeguard American workers while ensuring the visa system draws in top-level global talent, rather than depress local wages.

This announcement comes alongside other initiatives from the Trump administration, such as a proclamation mandating employers to add a $100,000 fee per H-1B visa, which is currently under legal scrutiny. Additionally, a unique high-value ‘gold card’ visa pathway for affluent foreigners has been introduced.

The H-1B visa is predominantly utilised by technology companies, medical facilities, and educational institutions across the US. A significant number of Indian professionals benefit from this visa, particularly in technology and healthcare fields. Traditionally, it has been a vital avenue for Indian graduates seeking employment in the US, although the new salary-based criteria may hinder early-career candidates.

Notable corporations like Amazon, Tata Consultancy Services, Microsoft, Apple, and Google are among the largest recipients of H-1B visas. California is home to the highest concentration of visa holders.

Advocates of the current program argue it stimulates innovation and addresses skill shortages in the US economy. In contrast, critics insist that the program has been misused to hire lower-wage workers for less skilled positions, detracting from its initial purpose.

As per existing regulations, the H-1B cap is still set at 65,000 visas each year, with an extra 20,000 allocated for those holding a master’s degree or higher from a US institution.