The Bill seeks to double minimum salary of H-1B visa holders to $130,000.
WASHINGTON: In what will be a big blow to IT firms in India, a legislation was introduced in the US House of Representatives today mandating that the minimum salary of H-1B visa holders be doubled to $130,000.
If the legislation is passed, it will become very difficult for American companies to use H1-B visas to hire foreign workers, including IT professionals from India.
The BSE IT index slumped over four per cent at news of the introduction of the new legislation.
The legislation "offers a market-based solution that gives priority to those companies willing to pay the most," said Congressman Zoe Lofgren, who introduced it. "This ensures American employers have access to the talent they need, while removing incentives for companies to undercut American wages and outsource jobs," he said.
The legislation, called the High-Skilled Integrity and Fairness Act of 2017, prioritises market-based allocation of visas to those companies willing to pay as much as 200 per cent of a wage calculated by the survey.
The legislation also proposes eliminating the 'lowest pay' category. The raised salary level - to more than $130,000 - is more than double the current H-1B minimum wage of $60,000, which was established in 1989 and has since remained unchanged.
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