(Image source from: Newskarnataka.com)
H-1B Wages are Expected to Rise by 30 percent:- As per the US public policy research organization Cato Institute, the wages of H-1B employees will rise by 30 percent following the US Department of Labour's new wage rules. This will increase the costs for Indian IT firms who depend more on H-1B professionals. As a result, the companies would hire locals more for work or they would move the work to offshore locations like India. This would benefit Americans and locals rather than Indians. The companies would not move on to pay such huge salaries through the H-1B visa scheme.
Several small and mid-sized firms may find this very difficult expressed analysts. This will indeed make the employee demanding high pay who are working offshore. The data of Cato Institute's data was compared with the new wage rates and the old rates in 2020. An immigration policy analyst named David J Bier clarified that 94% of the H-1B job offers are below the prevailing wage rates. The new rates are 20% higher than the actual wages. TCS which offers 36.5 USD per hour will now have to pay 52.7 USD per hour and the increase is 44 percent. Apple will witness a spike from 67 USD per hour to 89 USD per hour.