The Impact of a Wage-Focused H-1B System on India’s Emerging Workforce

India has long been the largest recipient of the H-1B visa, and any new changes to this program could likely affect India the most.

The Trump administration is reportedly working to reform the current lottery system for H-1B visas in the United States by selecting higher-skilled and wage-based H1B visa lottery first, in what could make entry-level talent more vulnerable.

In 2024, the United States approved a total of 399,395 H-1B visas, of which Indians took up a dominant 71% share, with the next closest being China, at a mere 11.7%. After the U.S. recently increased H-1B visa fees to $100,000, the Department of Homeland Security (DHS) is now hoping to do away with the current lottery system, in which applications are selected at random, and replace it entry-level Indian talent H1B, in which those who pay higher wages have a better chance of being selected.

The new policy will ensure that, in the event of annual applications exceeding the statutory H-1B cap of 85,000 or if demand outstrips supply, US visa reforms 2025 would be issued with preference to those with higher wages.

Will Salary Be the Only Factor?

No, as it currently stands the DHS says it would be just one of many factors. The DHS proposal has said that “the new system would favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H1B visa impact India.” In other words, entry-levels who would have a reduced chance of selection would not be ruled out completely.

However, Bloomberg has said that applicants would be sorted into four wage levels as per Labor Department data. Those in the highest wage category would get four entries in the selection pool, while those in the bottom category would only get one entry, giving those with a higher wage a much bigger advantage.

Effect on Indian Entry-Level Workers

Since Indians make up the largest chunk of H1B lottery changes, they’re expected to be the ones affected most. The combination of the $100,000 visa fee, with the wage-based allocation system, would likely make life more difficult for new entrants.