Following a hike in H-1B visa fees to $100,000, the Donald Trump administration has proposed a significant change to the selection process. The US Department of Homeland Security (DHS) released a new draft on Tuesday, outlining the replacement of the random lottery system with a ‘wage and skills-based’ system.
Under the proposed system, applicants will be prioritized based on their Occupational Employment and Wages Statistics (OEWS) classification. Wage levels will be categorized into four tiers, with Level Four applicants receiving four entries into the selection pool and Level One applicants receiving one.
However, each applicant will only be counted once in the numerical calculation. The Trump administration claims this reform will encourage employers to choose better-paid and more qualified candidates.
The DHS estimates that this change will increase the annual income of H-1B (H-1B Visa) employees by approximately $502 million in the first year alone.
The new selection system may prove challenging for smaller organisations, particularly those recruiting employees at wage level one. They could face additional expenses of up to approximately $85,006 per vacancy.
Conversely, smaller organisations employing higher-wage employees will see improved selection chances. This move is considered part of the Trump administration's stricter immigration policy.
The US government has significantly increased H-1B visa fees, potentially impacting Indian IT companies and professionals substantially.
Under the new fee structure, US companies must now pay approximately ₹88 lakh ($100,000) for each H-1B visa application. This increase came into effect on 21 September 2025.
The US government believes the H-1B visa program was being misused, leading to decreased wages for American workers and job displacement for young people. The increase aims to encourage US companies to prioritize American workers over foreign employees.
