Minimum wage of H-1B visa holders within the US prone to improve; however why it is no excellent news for Indian professionals ?

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Trump celebrating Diwali.Facebook

A Congressional committee within the United States on Thursday, handed a laws that goals at elevating the minimal wage of H-1B visa holders from $60,000 to $90,000. It additionally imposes various restrictions on the visa, which is fashionable amongst Indian IT professionals.

The Protect and Grow American Jobs Act (HR 170) was handed by the House Judiciary Committee on Wednesday. This invoice will now head to the total House for additional approval. The same model of the invoice must be handed by the Senate as properly, earlier than it may be despatched to the White House for the US President Donald Trump to be signed into the legislation, The Press Trust of India reported.

This invoice, nevertheless, bans H1-B dependent employers from changing American jobs with H1-B staff, mentioning that there are now not any exceptions.

It additional elevated the interval of the no-layoff coverage for H1-B dependent corporations and their shopper corporations. As per the brand new invoice, the businesses can’t layoff equal US staff so long as an H1-B visa holder continues to work on the firm.  

Once the invoice turns into a legislation, the employers should rent H1-B visa holders at the next wage.  The cause why the Protect and Grow American Jobs Act appears to extend the wage necessities for the H1-B visa holders is that it might make hiring of international staff much less engaging from the viewpoint of the businesses. 

“They must pay the lower of $1, 35,000–which is indexed for inflation–or the average wage for the occupation in the area of employment, but with a floor of $90, 000,” stated a media launch issued by the House Judiciary Committee.

According to NASSCOM president R Chandrashekhar, the invoice may hurt US companies and impose excessive bureaucratic strain on a visa programme that largely contributes to the US development.

“It also could disrupt the marketplace, threaten thousands of US jobs, and stifle US innovation by unfairly and arbitrarily targeting a handful of companies who used just 16 per cent of the new H-1B visas in FY 2016 while imposing no new requirements on the vast majority of companies that use the visas to do the same exact same things,” stated Chandrashekhar.

This transfer got here after the Trump administration handed on a brand new directive final month which can add to the stress of H1-B and L1 visa holders within the US because the burden of proof will now fall on the applicant not solely when making use of for the H1-B the primary time, however every time an extension is sought.

That transfer will give a tough time to the Indian techies as each the visas are very talked-about amongst Indian IT staff. These IT professionals and different staff who maintain the H1-B visa should now face the identical intense scrutiny they confronted earlier.

Recently, External Affairs Minister Sushma Swaraj additionally flagged the H-1B visa concern as a “strong concern” throughout a gathering with a visiting US Congressional delegation and sought a further badist for it.

Sushma Swaraj

In image: External Affairs Minister Sushma Swaraj speaks on the UNGA in New York in September 2017.Twitter/BJP4India

Finance Minister Arun Jaitley additionally on his current go to to the US, had raised the problem throughout his conferences and stated that these coming from India on H-1B visas are excessive worth professionals, who contribute largely to the US economic system. He additionally added that the US should resolve appropriately whereas taking a choice on its visa coverage.

In addition, a modern knowledge from job web site Indeed additionally confirmed there was a pointy drop within the variety of Indians searching for to maneuver to the US and the UK over a 12 months, in comparison with the corresponding interval the earlier 12 months.

About 38 p.c drop was seen within the variety of Indians desirous to work within the US and 42 p.c within the UK. Overall, the information confirmed there was a 5 p.c drop within the Indians trying to transfer overseas looking for job alternatives.

Such crackdown on H-1B visas by the US may additionally push this quantity up.

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