Infosys, TCS, Wipro and other IT majors stock fall on new US Bill to restrict H-1B visa

CHENNAI: Shares of major IT companies like Infosys, TCS, Wipro, HCL Technologies and Tech Mahindra fell up to 5% on the Indian bourses and in pre-market trading on US exchanges on news reports of a new Bill being tabled in the US House of Representatives.

The Bill seeks to double the minimum salary of H-1B visa holders to $130,000, making it difficult for

IT majors

to hire foreign workers .

Shares of mid-cap IT companies also fell up to 4% - with Take Solutions, NIIT Technologies, MindTree Ltd and Mphasis seeing a drop.

With the UK already hiking the minimum wage requirement to £35,000 for tier-2 visa immigrants, this latest move by the US will act as a definitive dampener to the Indian outsourcing industry .

The $150-billion Indian outsourcing industry, which has been the target of both Democratic and Republican ire, might take a hit with the introduction of the High-Skilled Integrity and Fairness Act of 2017, introduced on Tuesday in Congress.

Tabled by Democratic California Congresswoman Zoe Lofgren, the Bill is likely to find favour with both American parties as it seeks to give first priority with respect to visas to companies willing to pay 200% hike on existing wages.

Effectively eliminating all lower-level employees, employers will now have to pay as much as $130,000 if they want to hire outside talent - more than doubling the current H-1B minimum wage of $60,000.

Agencies reported that Lofgren said her legislation aimed at supplementing the US workforce with talented, highly-paid, and highly-skilled workers who help create "jobs here in America, not replace them." The Congress representative is based out of Silicon Valley.

With regard to startups, the Bill would set aside 20% of the allocated H-1B visas each year for startups, firms defined as having 50 or fewer workers.

In an effort to redefine the H-1B programme, the Congresswoman also sought to change how visas are allocated based on national origin. With the current limit on how many visas can be awarded to people from each country, there is a backlog for applications from India and China. This move might give more mobility to people, who are looking to switch employers, agencies reported.


Stay informed with the latest Business News on Times of India. Explore the list of Bank Holidays, stay informed about Budget 2025, discover the new Income Tax Slabs, and use the Income Tax Calculator for hassle-free tax planning.

Unlock Investment Potential: Enroll in ET's Stock Valuation Workshop - Batch 3. Secure Your Spot Now!