US Scraps H-1B Lottery, Shifts to Wage-Skill Based Visa System; Major Impact on Indians

• US Department of Homeland Security (DHS) overhauls H-1B visa program, replacing the lottery with a weighted selection based on wage levels and skills.
• The new system prioritizes higher-skilled and higher-paid foreign workers, aiming to prevent misuse by employers seeking cheaper labor and safeguard American jobs.
• Rules come into effect on February 27, 2026, for the FY 2027 H-1B cap registration season.
• Indian professionals, who constitute over 70% of H-1B holders, will be significantly impacted, with lower/mid-wage applicants facing tougher competition.
• Highly skilled Indians with advanced qualifications and higher salary offers may see improved chances, while entry-level and outsourcing firms could face sharp drops in approvals.

Why It Matters: US H-1B visa overhaul prioritizes skills and wages, significantly impacting Indian tech workers.