Nasscom flags long-term talent risks in wage-weighted H-1B system, seeks FY28 rollout

Representative image

India’s technology industry body, Nasscom, has cautioned that a proposed shift to a wage-weighted H-1B visa lottery could weaken the United States’ long-term talent pipeline and disrupt established workforce planning, urging policymakers to delay implementation until the FY28 cap season.

On the proposed rule issued by the Department of Homeland Security (DHS) and to be implemented by the US Citizenship and Immigration Services, Nasscom said the move represents a sharp departure from the long-standing neutral lottery system and raises legal, economic, and operational concerns.

On December 23, the DHS said it is moving away from a purely random lottery to a wage-weighted selection system that gives higher-paid roles a better chance of selection, in one of the most consequential changes to the H-1B programme in decades, following the earlier $100,000 fee hike.

"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... Delaying implementation until the FY 2028 lottery cycle would provide

employers the necessary runway to adapt processes, ensure compliance, and maintain

confidence in the stability of the U.S. talent and investment environment," Nasscom said in a statement.

The industry body said it understands the intent behind the reform: to favour higher-skilled, better-paid roles, curb misuse and safeguard US wages. But tying selection odds to wage levels risks blurring the programme’s original focus on “specialty occupations” and turning it into a ranking exercise based largely on pay.

That matters because wages differ sharply across regions and roles.

A wage-weighted model, Nasscom said, could skew outcomes against small and mid-sized companies, startups, research institutions and university-linked employers that offer market-appropriate, but not top-tier, pay.

One of the sharpest concerns is at the entry level. Nasscom pointed out that many H-1B applications at Level I and Level II wages are for graduates stepping out of US universities into their first industry roles in science, engineering, and computing.

Narrowing access at this stage could weaken the long-term talent pipeline and make the US less attractive for international students considering advanced education.

Such an outcome would cut against broader US ambitions around competitiveness, innovation and higher education, the submission argued.

Nasscom also warned that an abrupt switch would add uncertainty and compliance burden, especially for employers that plan hiring around academic calendars, delivery schedules, and product cycles.

To underline the stakes, the industry body highlighted the scale of its members’ presence in the US economy.

Nasscom companies support more than 1.6 million (16 lakh) skilled jobs, contribute $198 billion to GDP and directly employ over 264,500 people across more than 25 major American communities. More than two-thirds of these roles sit outside Silicon Valley and New York, helping build technology hubs in states such as Texas, North Carolina, Ohio, and Illinois.

Given this footprint, Nasscom said any overhaul of the H-1B system must protect predictability, fairness, and alignment with legislative intent.

If a wage-weighted model is ultimately adopted, it called for a phased rollout with adequate lead time, recommending a deferral to the FY2028 lottery cycle so employers can adjust, stay compliant and retain confidence in the stability of the US talent and investment environment.

Also, read: H-1B visa lottery scrapped: Little change for Indian IT as reforms formalise long-running shift