Wage-Based Ranking to Decide H-1B Visas as US Ends Lottery System

The United States will overhaul the H-1B visa programme for the 2027 fiscal year, replacing the lottery with a wage-based selection system and introducing a $100,000 petition fee for many employers.

Under the new rules, US Citizenship and Immigration Services (USCIS) will rank H-1B applicants by salary and experience rather than selecting them at random. From February 2026, candidates will be placed into four wage levels, with Level 1 covering entry-level roles and Levels 2 to 4 applying to progressively more experienced and higher-paid professionals. Selection priority will be given to those in the upper wage tiers.

The shift is expected to significantly alter selection outcomes. Entry-level applicants are projected to see their chances fall by about 48 percent. By contrast, mid-level and senior professionals may see modest to substantial increases in selection rates, ranging from around 3 percent to more than 100 per cent, depending on wage level. The policy is intended to favour higher-paid roles and specialised skills.

In parallel, the administration has introduced a one-time H-1B petition fee of $100,000. Announced in September 2025, the fee applies to new H-1B filings and represents a sharp increase on previous costs. Certain groups are exempt, including F-1 students changing status, existing H-1B holders, and applicants seeking visa renewals. These exemptions aim to limit disruption to current employment arrangements.

The scale of the new fee is expected to affect employer participation. Smaller companies and start-ups may find sponsorship financially unviable, while larger firms with greater resources are likely to remain active in the programme. This could concentrate access to foreign skilled workers among major employers.

The changes come amid wider challenges for foreign professionals, particularly Indian nationals. Visa processing delays at US consulates have pushed some interviews several months back. In some cases, workers with confirmed job offers have been unable to enter the country. Employers including Amazon have allowed affected employees to work remotely on a temporary basis.

Together, the wage-based selection system and the increased petition fee represent a major shift in the structure of the H-1B programme. The revised framework prioritises higher salaries and experience while raising the financial threshold for participation. Younger applicants and smaller employers are likely to face greater difficulty under the new system.