Indian IT Firms Forced To Pay 40% Extra Salary To H1B Employees; Loss For TCS, Wipro, Infosys?
The two big changes in the H-1B visa implemented by the US Government have hugely impacted Indian IT companies the most.
As confirmed by new reports, there is a possibility that Indian IT firms will be required to pay a higher wage to the H-1B visa holders.
How does this affect Indian IT companies? Read on to find out all the details!
40% Increase In Wages For H-1B Employees; Will This Reduce Profit For Employees?
As much as 40% higher wages will be required to be given to the employees who will be working on an H-1B visa. The higher levels of wages to be paid will result in the reduction of the profit margins for the companies.
After the implementation of this rule, top IT companies of India, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Wipro will be required to hire locally, if they want to keep up with their profits.
Another option would be offshoring, wherein the companies could shift their projects elsewhere, i.e. to India. This would definitely help them save costs.
Wipro To Pay Highest Wage, Followed By TCS, Infosys
As revealed by the Office of Foreign Labour Certification and Cato’s study, the highest salary increase will be borne by Wipro, which will have to pay $57.01 per hour. This is an increase of as much as 49.9 per cent, from the current rate of $38.03 per hour.
Next in line is Tata Consultancy Services, who will be required to pay $52.07 an hour, which is an increase of 44.3 per cent from the present rate of $36.51 per hour.
The wages of Infosys’ employees will be increased to $59.51 from the present $41.49 per hour, which indicates an increase of 43.6 per cent.
Another India based firm, Zensar Technologies, that will record a rise of as much as 53 per cent to give $67.03 per hour.
Also, technology giant Apple Inc, who paid $67.07% per hour previously, will be required to pay $89.03 per hour. Whereas, online eCommerce giant Amazon will be required to pay $74.70, which is a jump from $59.53 per hour.