US Replaces H-1B Visa Lottery with Wage-Weighted Selection System

The U.S. has replaced its random H-1B visa lottery with a new wage-weighted selection process, prioritizing higher-skilled and higher-paid workers. This reform, effective February 27, 2026, formalizes shifts already undertaken by major Indian IT firms, leading to a limited near-term impact on them but potentially affecting entry-level Indian professionals.

• Random H-1B lottery replaced by wage-weighted selection process.
• New rule favors higher-skilled, higher-paid foreign workers for H-1B visas.
• Effective February 27, 2026, for the FY 2027 H-1B cap registration season.
• Large Indian IT firms already shifted to senior talent and offshore delivery.
• Impact on major Indian IT companies expected to be limited due to prior adaptations.
• Rule change may disproportionately affect entry-level Indian professionals and smaller firms.

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