As of July 2025, the H-1B Lottery System remains a central part of how the United States 🇺🇸 allocates work visas for skilled foreign workers. While there has been much debate about moving to a Pay Scale Lottery System, no official change has been made yet. This update explains what has changed, who is affected, what actions are required, and what the future might hold for employers and workers. It also compares the current random lottery with the proposed wage-based system, so readers can understand the possible impacts and prepare for what comes next.
What Has Changed: Status of the H-1B Lottery System in 2025
The H-1B visa allows employers in the United States 🇺🇸 to hire foreign workers in specialty occupations, such as technology, engineering, and healthcare. Each year, there is a cap of 85,000 new H-1B visas: 65,000 for the general pool and 20,000 for those with advanced degrees from U.S. institutions.
Key points about the current system:
- The H-1B Lottery System is still a random selection process. When the number of applications is higher than the cap, the United States Citizenship and Immigration Services (USCIS) runs a lottery to pick who can apply for the visa.
- The process starts with an electronic registration period, usually in March. Employers pay a $10 registration fee for each worker they want to sponsor.
- There are two lotteries: one for the 20,000 advanced degree spots, and another for the remaining 65,000 spots. If someone with an advanced degree is not picked in the first lottery, they get another chance in the second.
- Selection is completely random. It does not matter how much the employer is offering to pay, where the job is located, or the size of the company.
- If selected, employers have 90 days to submit the full H-1B petition.
Recent changes and improvements:
- USCIS has taken steps to reduce abuse, such as limiting duplicate registrations by using passport numbers. This helps prevent companies from flooding the lottery with multiple entries for the same person.
- Despite these changes, the basic lottery method remains the same. There is still no priority given to higher wages or more experienced workers.
No official move to a Pay Scale Lottery System has happened as of July 2025. The idea is still being discussed by government agencies and lawmakers, but it is not yet in effect.
Who Is Affected by the Current and Proposed Systems
Employers:
- All employers—large tech companies, small startups, universities, and hospitals—are treated equally in the current H-1B Lottery System.
- Startups and small businesses have the same odds as big companies, regardless of how much they pay or where they are located.
- Employers in high-cost cities like San Francisco or New York do not get any special advantage under the current system.
Workers:
- Both entry-level and experienced workers have similar chances of being selected.
- New graduates from U.S. universities, especially those with advanced degrees, have a fair shot at getting an H-1B visa.
- Workers applying for lower-wage jobs are not at a disadvantage in the current system.
If the Pay Scale Lottery System were adopted:
- Large, high-paying employers in expensive cities would have a much better chance of getting H-1B visas for their workers.
- Smaller companies and startups would find it harder to compete, especially if they cannot offer top salaries.
- Entry-level workers and new graduates would have a much lower chance of being selected, as the system would favor higher-paid, more experienced professionals.
- Jobs in lower-cost regions would be less likely to get H-1B visas, as the system would prioritize jobs in places with higher wage standards.
Effective Dates and Required Actions
Current System (Random Lottery):
- The random lottery system is still in place for the 2025 fiscal year.
- Employers must register during the official window, usually in March. For 2025, this was in March 2024.
- After registration, employers wait for the lottery results. If selected, they have 90 days to file the full petition.
- Employers should continue to monitor the USCIS H-1B page for updates on registration dates and any changes to the process.
If the Pay Scale Lottery System is adopted in the future:
- Employers would need to review their wage offers and possibly increase salaries to improve their chances.
- Companies in lower-wage regions or those offering entry-level salaries would need to consider other visa options or hiring strategies.
- Workers would need to focus on higher-paying roles or gaining more experience to qualify for H-1B sponsorship.
Implications for Pending Applications
For applications already submitted in 2025:
- The random lottery rules apply. Selection is not based on salary or job location.
- If you are waiting for results, your chances are the same as everyone else in your category.
- If you are selected, you must submit your full petition within the 90-day window.
For future applicants:
- If you plan to apply in 2026 or later, keep an eye on policy updates. There is a chance the system could change, but nothing is certain yet.
- Employers and workers should be ready to adjust their plans if a Pay Scale Lottery System is announced.
Comparing the H-1B Lottery System and Pay Scale Lottery System
Selection Method
- H-1B Lottery System: Completely random among all entries. No preference for higher wages, company size, or job location.
- Pay Scale Lottery System: Prioritizes higher wage offers. If there are more applications than visas in a wage tier, a lottery is held within that tier.
Employer Advantage
- H-1B Lottery System: All employers have the same odds, regardless of size or wage offer.
- Pay Scale Lottery System: Large, high-paying employers have a clear advantage. Smaller companies and those in lower-wage areas struggle to compete.
Geographical Impact
- H-1B Lottery System: Neutral. Jobs in any part of the United States 🇺🇸 have the same chance.
- Pay Scale Lottery System: Favors jobs in big cities and regions with higher wage standards, like California and New York.
Worker Impact
- H-1B Lottery System: Entry-level and experienced workers have similar odds.
- Pay Scale Lottery System: Strongly favors mid-to-senior level, high-paid workers. Entry-level positions are rarely chosen.
Misuse and Abuse
- H-1B Lottery System: Vulnerable to abuse. Outsourcing firms can submit many entries for low-wage jobs.
- Pay Scale Lottery System: Discourages low-wage offers and reduces abuse by making it harder for outsourcing firms to win visas for low-paid roles.
Predictability
- H-1B Lottery System: Highly unpredictable. Employers often submit more applications than needed, wasting time and money.
- Pay Scale Lottery System: More predictable. Employers know the wage cutoff required, so they can plan better.
Wage Effects
- H-1B Lottery System: No incentive to increase wages. Many selected workers are paid at the lower end of the scale.
- Pay Scale Lottery System: Raises average H-1B salaries by about 41%. Increases the economic value of the program.
Diversity and Entry-Level Opportunity
- H-1B Lottery System: Keeps opportunities open for new graduates, early-career workers, and smaller firms.
- Pay Scale Lottery System: Drastically reduces chances for entry-level and early-career workers. Most international graduates would be blocked from the H-1B pathway.
Economic Impact
- H-1B Lottery System: Allocates some visas to less-specialized roles. This can mean more diversity but less economic efficiency.
- Pay Scale Lottery System: Directs most visas to the highest-skill, highest-paid jobs. This can almost double the economic contribution but risks reducing diversity and regional balance.
Pros and Cons: What Stakeholders Say
Random Lottery System:
- Pros:
- Equal chance for all, regardless of salary or job location.
- Keeps doors open for entry-level workers and smaller employers.
- Simple to run and understand.
- Cons:
- Easy to abuse by companies submitting many low-wage applications.
- Unpredictable for employers and workers.
- Does not always select the highest-skilled or most valuable workers.
Pay Scale Lottery System:
- Pros:
- Prioritizes skills and economic contribution.
- Raises wages for H-1B workers.
- Reduces abuse by discouraging mass low-wage applications.
- Benefits highly skilled, experienced professionals and large companies in big cities.
- Cons:
- Makes it much harder for new graduates, young professionals, and smaller firms.
- Pushes more visas into already expensive labor markets, which could increase regional imbalances.
- Could discourage international students from studying in the United States 🇺🇸 if they see little chance of getting an H-1B visa after graduation.
Recent Developments and Policy Discussions
- The Biden administration and the Department of Homeland Security (DHS) have discussed moving to a Pay Scale Lottery System, but as of July 2025, this is still only a proposal.
- USCIS has made some changes to reduce duplicate entries and abuse but has not changed the basic lottery method.
- Large tech companies and employers in high-cost cities generally support wage-based selection, as it helps them secure top talent and reduces uncertainty.
- Startups, small businesses, and universities warn that a wage-based system would shut out entry-level workers and reduce opportunities for international graduates.
- Immigration experts say the system needs to balance economic efficiency with fairness and diversity.
- Congress has not passed any law requiring a Pay Scale Lottery System. Any change would need new legislation or a new rule from USCIS.
What Should Employers and Workers Do Now?
Employers:
- Register during the official window and pay the required fees.
- Prepare for unpredictable results and have backup hiring plans.
- If the Pay Scale Lottery System is adopted in the future, review wage offers and consider how to stay competitive.
Workers:
- Entry-level and early-career applicants still have a chance under the current system.
- If the system changes, focus on gaining experience and seeking higher-paying roles to improve your odds.
- Stay informed about policy updates and be ready to adjust your plans.
Pending Applications:
- If you have already registered for the 2025 lottery, your application will be considered under the current random system.
- If you are planning to apply in the future, keep an eye on official announcements for any changes.
Looking Ahead: Expert Analysis and Future Possibilities
Analysis from VisaVerge.com suggests that while the random H-1B Lottery System is fairer for entry-level workers and smaller employers, it is not the most efficient way to select the highest-skilled workers. The Pay Scale Lottery System could raise wages and economic value but would make it much harder for new graduates and small businesses to get visas.
Some experts believe a hybrid system could be the answer, combining wage-based selection with special protections for entry-level workers and smaller employers. For now, no official change has been made, but the debate continues.
Employers and workers should:
- Monitor the USCIS H-1B Visa page for the latest updates.
- Watch for announcements from Congress and the Department of Homeland Security.
- Consult with immigration attorneys or advocacy groups for guidance on current rules and possible reforms.
Key Takeaways and Next Steps
- The H-1B Lottery System is still random in 2025. No Pay Scale Lottery System has been adopted yet.
- Employers and workers should continue to follow the current process but be ready for possible changes.
- The debate over how to allocate H-1B visas is ongoing, with strong arguments on both sides.
- Stay informed, plan ahead, and be ready to adjust your strategy if the rules change.
For more details on the H-1B process, including forms and deadlines, visit the official USCIS H-1B Specialty Occupations page.
By understanding the differences between the H-1B Lottery System and the Pay Scale Lottery System, employers and workers can make better decisions and prepare for whatever changes may come.
Learn Today
H-1B Lottery System → A random selection process to allocate H-1B visas when applications exceed the annual cap.
Pay Scale Lottery System → A proposed visa allocation method prioritizing higher wage offers during the selection process.
USCIS → United States Citizenship and Immigration Services, the agency managing H-1B visa registrations and petitions.
Advanced Degree Exemption → A pool of 20,000 H-1B visas reserved for applicants with U.S. advanced degrees.
Electronic Registration → The initial online step where employers register potential H-1B applicants, paying a $10 fee each.
This Article in a Nutshell
The H-1B Lottery System allocates 85,000 visas annually through a random process without wage priority. Proposed wage-based reforms remain proposals in 2025, affecting employers and workers differently. Staying informed and prepared is key for applicants amid possible future changes to eligibility and selection methods.
— By VisaVerge.com
