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US H1B Visa Wage Increase for IT Professionals not to get Implemented Soon

November 2017, 22
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The proposal sent to the US Congress for increasing the wages payable to the H-1B visa holders from $60,000 to $90,000 is not likely to be implemented soon. It has to pass through several stages to become a law. It was designed to stop the prevalent outsourcing of US jobs.

The Protect and Grow American Jobs Act, which was introduced by Darrell Issa, Chairman of the Subcommittee, on the Internet, Intellectual Property and the Courts, first has to go to the Congress. Subsequently, after holding a discussion, it needs passing in the House. The next stage is the Senate, and to conclude it requires the approval of the President to become law.

At present The Information Technology industry in India depends on H-1B visas, to carry out their US projects. The present Bill has the prospect to affect companies when it gets endorsed as law.  It was formulated to overcome lacunae in the H-1B visa program and required employers, who depended on H-1B to pay high wages. This was done to protect the local workforce as also in removing other obstacles to enforce H-1B visa properly.

The Justification given for increasing the wages in this visas category was that the $60,000 figure, which came into force in 1998. It was comparatively better than the wages which were paid to American workers on an average. This level of $60,000 was never corrected considering the inflation and presently is slightly higher, than half of the average paid, to a US-based worker.

This Bill forbids US-based H-1B dependent employers, from finding a replacement for American workmen, with H-1B employees. It strengthens the strict enforcement by the Labour Department and ensures that these employers follow the rules.

R Chandrashekhar President NASSCOM has stated that this legislation is driven not by reality but by myths, and can harm the US businesses in a big way. It will also impose huge bureaucratic red tape, and disrupt the markets. It will surely threaten jobs and stifle innovation in the USA.
 
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