H-1B Overhaul: Nasscom Flags Talent Risks In Wage-Weighted Visa System, Seeks Delay Till FY28

National Association of Software and Service Companies or Nasscom, India’s technology industry body, has warned of risks to the United States' long-term talent pipeline due to a shift to the wage-weighted H-1B visa lottery system.

The tech industry body has cautioned that the shift will not only debilitate the talent pool, but also disrupt an already established workforce plan. The new system would introduce uncertainty, and raise compliance-related complexities, it said in a statement.

Accordingly, Nasscom has urged for a delay in its rollout till FY28 cap season.

Nasscom said that the proposed rule issued by the US Department of Homeland Security (DHS) marks a sharp departure from the long-standing neutral lottery system and raises legal, economic, and operational concerns.

Notably, the DHS on Tuesday informed that it is shifting to a wage-weighted selection system from a purely random lottery system, in order to give higher-paid roles a better chance of selection.

"Under a wage-weighted system, restricting opportunities at the entry level could weaken the future talent base and discourage international students from pursuing advanced education in the United States", Nasscom said.

The statement underlined that delaying implementation until the FY28 lottery cycle would offer employers the necessary buffer to adapt processes, ensure compliance, and maintain confidence in the stability of the US talent and investment environment.

Nasscom's objection to the H-1B overhaul assumes significance, as its member companies cumulatively support over 1.6 million skilled jobs across the United States. According to the industry body, it contributes $198 billion to the US GDP.

Notably, Washington's decision to phase out the lottery system comes in the backdrop of the Donald Trump-led administration raising the H-1B visa fee to $100,000. These measures are seen to be adversely impacting India, the country of origin of about 70% of H-1B visa holders last year.