The move to abolish the H1-B visa system will increase companies' costs

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Mumbai, Ta. 30 October 2020, Friday

US President Donald Trump's proposal to abolish the computerized lottery system for H1-B visas will increase the cost of doing business for companies, leading to a significant drop in visa applications.

The proposal comes just days before the US presidential election. However, more clarity on this issue is likely to be seen only after the elections. The selection process based on the level of wages may be introduced instead of the lottery system. Currently H1-B visa applications are selected from a common pool.

The Trump administration has proposed a 20 percent increase in wages for H1-B visa workers.

An average of two lakh H1-B applications are received every year, but the number of applications was very low at the end of March and the beginning of April this year, prompting the government to extend the deadline to November 15. Experts believe that the pay-as-you-go H1-B visa process will increase the costs for companies, especially IT companies.

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