This ruling will make it doubly difficult for firms to replace American employees with foreign workers, including Indian.
No sooner than the bill relating to H-1B visas was introduced on January 31 did Information Technology stocks take a beating. Indian IT professionals largely use these visas to go to the US.
According to reliable sources, no sooner didÂ the news break out, the Indian IT stocks, including Infosys, TCS, Wipro and Tech Mahindra, slid by as much as 9 per cent wiping out a whopping Rs 44,000 crore.
The Bill introduced seeks to double the salaries for IT firms to $130,000 per annum, which is more than double of the current H-1B minimum wage of $60,000, which has remained so since 1989.
The BillâHigh-Skilled Integrity and Fairness Act of 2017âhas been introduced by Congressman Zoe Lofgren. As per the Bill, visas are given on priority to those firms, which are willing to increase the minimum wage and do away category of lowest pay.
Explaining the Congressman said, âIt offers a market-based solution to prioritise those firms willing to pay the most. This ensures American employers have full access to the talent they need, while removing perks for those firms which undercut American wages and outsource jobs.â
Following the tabling of the Bill, the BSE IT index fell by 4 per cent to 9,498. The shares of HCL Technologies traded 4.85 per cent lower at Rs 799. TCS, the largest IT player, saw its stock price tumble 4.61 per cent to Rs 2226.50.