Wage levels for H-1B workers to go up by 30%

 Wage levels for H-1B workers to go up by 30%

The US Department of Labour (DoL) is likely to increase the wage rules for H-1B employees.

The US public policy research organisation, Cato Institute has published the details. 

The increase in wage rules will make it difficult for Indian IT firms to hire H-1B visa holders. Most IT service firms depend a lot of H-1B visa holders to run their US operations. 

Indian firms send the skilled techies to clients located in the US on H-1B visa program. 

Cato's report suggests that the employers will be asked to pay the prevailing wage as the minimum wage to H-1B and foreign workers.

 According to Cato Institute's immigration policy analyst, David J Bier, 94% of H-1B offers were below prevailing wage levels in the US. 

For over 88% jobs for H-1B holders, the new prevailing wage rate is 20% higher than the actual wage. Indian IT major, TCS offers $36.5 per hour to employees. 

It will have to increase it to $52.7 per hour. Cognizant offers $42.2, it will have to offer $62 per hour. Wipro pays $38, it will be increased to $57. Oracle will observe a sharp rise, from $58.7 to $87. Apple will see a spike from $67 to $89 per hour. 

For large tech companies, complying with the new wage levels will not be a big problem. Mid and small-sized tech firms will face the heat.

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