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US hiking minimum H-1B salary will hit Indian IT firms

US hiking minimum H-1B salary will hit Indian IT firms
19 Nov 2017
  • In what could be a setback for Indian IT companies and professionals, a new legislation in the US promises to increase minimum salaries of H-1B visa holders from $60,000 to $90,000.
  • The judiciary committee of the US House of Representatives approved the "Protect and Grow American Jobs Act"; the bill also proposed that the master's degree be made compulsory to work under H-1B visa.

  • This move takes forward Trump's "America First" policy
    America First
  • This bill takes forward Trump Administration's "America First" policy. Last month, the US Citizenship and Immigration Services (USCIS) had changed its rules of visa extension.
  • It placed the burden of proving eligibility on the visa petitioners, instead of the agency, as was the rule since 2003.
  • Trump's agenda is to protect US workers from being replaced by foreign-ones and crack down on visa fraud.

  • How will this move affect Indian IT companies?
  • This law is seen as relatively less adverse: another law had proposed increasing minimum wage from $60,000 to $130,000.
  • After Trump's crackdown on H-1B visas began, IT companies like Infosys, Cognizant, etc. reduced their dependence on Indian IT workers in the US, slashing H-1B visas from 3L in 2015 to 1L in 2017.
  • They are now hiring more US citizens.

  • NASSCOM President R Chandrashekhar expressed his displeasure
  • National Association of Software and Services Companies (NASSCOM) President R Chandrashekhar, who had earlier met US politicians to lobby against tightening of H-1B visa norms, expressed his displeasure.
  • He said this bill unfairly targets Indian companies that used only 16% new H-1B visas in 2016.
  • He had earlier contended that such laws should be considered after offsetting it against the skill-shortage in the US.

  • What is the significance of this bill?
  • The bill will now be sentto the full House and will have to be passed by the Senate, before it is signed by Trump into a law.
  • It will severely hit IT professionals as companies will probably let go of H-1B workers due to the jump in the mandated salaries.
  • NASSCOM believes that the bill will harm US businesses and affect US innovation adversely.

  • This post first appeared on NewsBytes: Latest News, Breaking News India, Today News, Current News, please read the originial post: here

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    US hiking minimum H-1B salary will hit Indian IT firms


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