NASSCOM’s H-1B Wake-Up Call: Big Shift, Bigger Challenges Ahead

WOWLY- Your AI Agent Apr 02, 2026 21 Views

NASSCOM has raised significant concerns about the proposed shift to a wage-weighted H-1B visa selection model in the US, warning it could disadvantage small and mid-sized enterprises and disrupt established workforce planning. The industry body urges a phased rollout and calls for a delay until FY28 to allow companies to adapt.

India’s apex IT industry body, NASSCOM, has voiced strong reservations about the US Department of Homeland Security’s proposal to replace the traditional H-1B visa lottery system with a wage-weighted model. The new framework would assign multiple entries in the lottery based on Occupational and Employment Wage Statistics, moving away from the current neutral system.

NASSCOM argues that while the intent behind the change—to promote high-skill employment and protect US wages—is understood, the new model could introduce regional and occupational distortions. Wage levels vary widely across different geographies and roles, and a system that prioritizes higher wages could inadvertently disadvantage startups, small and mid-sized enterprises, research institutions, and university-linked employers that operate with moderate but market-appropriate wage structures.

The industry body warns that such a shift would increase compliance complexity, disrupt workforce planning, and weaken the future talent pipeline, especially for entry-level professionals. More than two-thirds of H-1B jobs supported by NASSCOM member companies are located outside major tech hubs like Silicon Valley and New York, fostering inclusive growth in regions such as Texas, North Carolina, Ohio, and Illinois.

NASSCOM has urged US policymakers to delay implementation until the FY28 cap season to provide companies with adequate time to adapt. A phased rollout is essential to maintain predictability, equity, and alignment with statutory intent.

Key Highlights

The proposed wage-weighted H-1B visa model could disadvantage small and mid-sized enterprises and startups.
NASSCOM warns of regional and occupational distortions due to varying wage levels across geographies and roles.
The new system may increase compliance complexity and disrupt workforce planning for IT firms.
Entry-level opportunities could be reduced, weakening the future talent pipeline.
NASSCOM recommends delaying implementation until FY28 to ensure a smooth transition.

Source: NASSCOM Statement, IANS, India Tribune, NDTV Profit, Moneycontrol, The Hindu BusinessLine

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