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H-1B wages will rise by over 30%: Cato Institute

H-1B employers will have to increase actual wage offers by more than 30% following the US department of labour (DoL)’s new wage rules for H-1B employees, according to US public policy research organisation Cato Institute. This would significantly increase costs for Indian IT services companies that depend on H-1Bs , and will push them to hire locally, and/or move work to offshore locations like India. H-1B employers will have to increase actual wage offers by more than 30% following the US department of labour (DoL)’s new wage rules for H-1B employees - Cato Institute Vikram Shroff, head of HR law practice at law firm Nishith Desai Associates, said large technology companies may be able to comply with the wage increase rule, especially to get foreign talent. “However, several smaller and mid-sized employers who also rely on H-1B might find such conditions restrictive. Then, there is also the question of employer needing to proportionately increase the wages of the similarly employ...