Microsoft has pushed back against recent US immigration measures, stating that the vast majority of its H-1B visa applications are for existing staff. The tech giant revealed that 80% of the approximately 6,000 H-1B visa applications it submitted in the last fiscal year were intended to extend or change the status of current employees, not to bring in new hires.
This defense follows the US government's decision to suspend Microsoft, alongside seven other technology companies including Infosys, TCS, Wipro, and HCL, from the Permanent Labor Certification program (PERM). The PERM program is a vital initial step for foreign workers seeking permanent residency, or a 'green card,' to live and work in the United States.
Clarifying H-1B Visa Usage
Microsoft emphasized that the remaining filings for new employees involved individuals already legally residing in the US who chose to join the company. These new-hire applications accounted for only one percent of Microsoft's total US workforce. The company affirmed that it only files H-1B petitions for roles meeting the stringent standards of the visa category and pays its H-1B employees compensation comparable to other staff in similar positions within the tech sector.
“We believe in the strength and talent of the American workforce,” Microsoft stated, adding that the majority of its US employees are American citizens. The company reiterated its commitment to strengthening the domestic talent pipeline while attracting top global talent.
Industry Reaction and Broader Impact
The suspension of these firms from the PERM program has intensified the ongoing debate surrounding immigration and skilled labor in the US. Industry body Nasscom, representing India's IT sector, highlighted that immigration and skilled talent mobility are distinct issues that should not be conflated. Nasscom acknowledged the temporary suspension affecting Indian technology companies but stressed the importance of global talent flow for the industry.
This latest development adds to existing challenges for Indian IT firms operating in the US, including increased scrutiny of work visas and rising costs associated with H-1B applications. The US remains the largest market for India's substantial IT industry, making these policy changes a significant concern for companies reliant on cross-border professional movement.