The United States is set to introduce a major change to the H-1B visa allocation system from February 27, shifting away from the long-standing random lottery model to a wage-based selection process, according to a Bloomberg report.
The new rule, released by the Trump administration, will come into force just weeks ahead of the annual spring H-1B filing season, a crucial hiring period for technology firms and other industries dependent on skilled foreign workers.
End of random lottery system
Currently, when H-1B applications exceed the annual cap, visas are allocated through a random lottery. Under the revised framework, applications will instead be ranked based on offered wage levels, with higher-paid roles receiving priority.
The move is aimed at ensuring that H-1B visas are issued to workers deemed to provide higher economic value, while reducing the programme’s use for lower-paid or entry-level positions.
Part of broader immigration tightening
The wage-based selection rule follows a series of recent immigration measures, including a presidential proclamation that introduced a $100,000 fee for certain H-1B workers hired from outside the US. That fee is currently under legal challenge.
Together, these steps signal a broader effort to reshape the H-1B programme, discouraging its use for lower-wage roles and tightening eligibility criteria.
H-1B visa quota remains unchanged
Under existing US immigration law, the annual H-1B cap remains at 65,000 visas, with an additional 20,000 visas reserved for applicants holding advanced degrees from US institutions. Demand for these visas has consistently exceeded supply, prompting the use of a lottery system in previous years.
How the wage-based selection will work
In September 2025, the US Department of Homeland Security outlined the mechanics of the proposed system.
Since 2020, employers have been required to submit electronic registrations for prospective H-1B workers before filing full petitions. Under the new rule, employers will also need to declare wage details at the registration stage.
Selections will be prioritised using the Occupational Employment and Wage Statistics (OEWS) framework, which classifies jobs into four wage levels:
- Level I: Entry-level roles
- Level II–III: Mid-level roles
- Level IV: Highly skilled, fully competent roles
While applications across all wage levels will still be accepted, higher wage categories will receive greater selection preference, reducing the chances for lower-paid applicants.
