Nasscom flags risks in proposed wage-weighted H-1B visa selection system

India’s IT industry body Nasscom has raised concerns over the proposed shift to a wage-weighted selection process for cap-subject H-1B visas, warning that it marks a significant departure from the long-standing neutral lottery system and could create legal, economic and operational challenges .

In a statement on the draft rule issued by the US Department of Homeland Security, Nasscom said that while the intent to promote high-skill employment, curb misuse and protect US wages is understandable, any reform must preserve a transparent and trusted visa framework to sustain the strength of the US technology ecosystem.

It cautioned that assigning multiple selection entries based on wage levels risks shifting the statutory focus away from “specialty occupation” towards wage ranking, potentially leading to regional and occupational distortions .

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Nasscom noted that wage levels vary widely by geography and role, and a weighted system could disadvantage small and mid-sized firms, start-ups, research institutions and university-linked employers that operate with moderate but market-appropriate wage structures.

The industry body also highlighted that Level I and Level II wage bands often represent entry-level roles for US-educated STEM graduates, forming a critical talent pipeline. Restricting these opportunities could weaken future innovation and discourage international students from pursuing advanced education in the US.

The statement added that a sudden transition would increase compliance complexity and disrupt workforce planning. If a wage-weighted model is pursued, Nasscom said a phased implementation with adequate lead time, potentially deferred to a later lottery cycle, would be essential to maintain confidence in the US talent and investment environment.