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Decoding the H1-B Visa Journey: What You Need to Know Before Moving to the U.S.
1. Introduction
* Today’s episode is a reality check for IT professionals, especially from India, who are considering moving to the U.S. on an H1-B visa.
* We’ll discuss the challenges, misconceptions, financial struggles, and career growth aspects of working in the U.S. on an H1-B visa.
* The aim is to provide you with clarity and help you avoid common mistakes made by professionals who moved to the U.S. without sufficient planning.
* Let’s break it all down.
2. The Recent Trend: H1-B Visa Moves (2022–2024)
* Over the last few years, especially from 2022 to 2024, there’s been a surge in Indian IT professionals coming to the U.S. on H1-B visas.
* Many are making this move without doing proper research or understanding what the move entails.
* Common outcomes:
* Struggling with low wages that don’t match the high cost of living.
* Living paycheck to paycheck, especially for families.
* Returning to India after failing to find jobs or financial stability.
* This trend has been accelerating since 2016 as job markets have tightened and companies have introduced restrictions on hiring H1-B professionals.
3. What is the H1-B Visa and What it’s not
* Let’s start with the basics: The H1-B visa is a temporary non-immigrant work visa.
* It allows U.S. employers to hire foreign professionals in specialty occupations like IT, engineering, finance, etc.
* It’s crucial to understand that:
* The H1-B visa is not a path to permanent residency or citizenship.
* Extensions like PERM, I-140, or green card applications are employer-dependent and do not guarantee a permanent stay in the U.S.
* The primary purpose of the H1-B visa is to fulfill specific job roles for a fixed period.
Mindset Shift:
* The H1-B visa is a means to gain international work experience, niche skills, and exposure to a new market—not a guaranteed way to settle abroad.
* Always treat it as a temporary work opportunity.
4. The Temporary Nature of the H1-B Visa
* The H1-B visa is initially granted for three years and can be extended for another three years. Beyond this, extensions require green card sponsorship or other legal pathways.
* If your employment ends, you have only 60 days to find another job or leave the country.
* It’s critical to have a clear plan:
* What will you do if your project ends or you lose your job?
* Are you prepared to return to India or transition to another opportunity?
* Mindset: The mindset you need to adopt: Treat the H1-B visa as a short-term opportunity to gain work experience, niche skills, and exposure to direct client interaction.
* Plan for the possibility of returning to your home country once your work is complete or the visa duration ends. Come to the U.S. knowing that your stay may be limited and your focus should be on career growth during this time.
5. Factors to Consider Before Moving to the U.S.
* Before deciding to move to the U.S. on an H1-B visa, ask yourself these key questions:
* What are your goals? Are you seeking international work exposure, higher earnings, or career advancement?
* Are you prepared for the challenges, including financial constraints, cultural adjustments, and uncertainties?
* How does this move fit into your long-term career plan?
* Make a checklist of factors to evaluate:
* Skills: Do you have in-demand skills for the U.S. job market?
* Financial Readiness: Are you prepared to manage high living costs with the offered salary?
* Family Considerations: Are you moving alone or with dependents? How will this impact your finances and lifestyle?
* Reflect on how this move will help you grow in your career—both professionally and financially.
6. Financial Realities: LCA Salaries and the Cost of Living in the U.S.
* Many Indian employers sponsor H1-B visas but pay the minimum required LCA (Labor Condition Application) salary.
* LCA salaries are often insufficient to cover the high cost of living in major U.S. cities.
* Example: An $85,000 salary in Virginia might seem attractive, but with rents, healthcare, groceries, and other expenses, it’s difficult to support a family.
* Some counties in Virginia estimate the average household income required for a decent living is $153,000.
* Housing Crisis: The U.S. has been experiencing a housing crisis, with skyrocketing rents and home prices.
* Inflation Impact: Post-COVID, inflation has increased costs for essentials like groceries, cars, and healthcare.
* Many families who moved to the U.S. in 2022–2024 are now struggling financially due to these factors.
Personal Finance Tip:
* Keep housing expenses at 30–40% of your income. If rents exceed this percentage, you may struggle to save.
* For families with a single income, surviving on LCA salaries often leads to financial stress and limited savings.
7. When is it Feasible to Move on an H1-B Visa?
* Moving on an H1-B visa can still be feasible in certain scenarios:
* If you’re young, single, and looking for career growth.
* If you’re financially disciplined and aim to save aggressively—your savings potential in the U.S. could be 5x compared to India (varies by experience and lifestyle).
* If your primary goal is to gain career skills and save aggressively.
* Or your employer pay offer is meeting with median household income of a county where your job is.
However, for families or those on LCA salaries, the financial strain can be significant.
8. Basics of Personal Finance for H1-B Professionals
* Let’s break down some basic financial considerations:
* If you’re earning $80,000 annually, your rent should ideally be 30% of your income (~$2,000/month). Due to rising costs, it’s often closer to 40%.
* In major tech hubs, rents can exceed $2,400/month, leaving little room for savings or discretionary spending.
* This financial imbalance is why many families on LCA salaries are living paycheck to paycheck or even returning to India.
* Plan your finances carefully to avoid falling into this trap.
9. Home Buying on an H1-B Visa: A Risky Decision
* Many H1-B professionals consider buying a home in the U.S., but this comes with risks:
* The H1-B visa is temporary—if you lose your job, you must leave the U.S. within 60 days.
* Treat home buying as an investment, not a long-term settlement plan.
* Don’t fall into the “keeping up with the Joneses” mentality or FOMO (fear of missing out).
* Renting vs. buying is a personal decision, but weigh the risks carefully.
10. Tightening Job Market and H1-B Exclusions
* Post-2016, many job descriptions now explicitly state they’re not open to H1-B candidates.
* Companies are increasingly stating job is not open for Visa Sponsorships or H1-B due to immigration law frequent changes. Many job descriptions explicitly state they are not open to H1-B visa holders.
Example: You will see a lot of job emails as below, means its tighter to find job open for H1-B visa.
Position: Datawarehouse engineer
Duration: 12 Months
Rate: W2 or 1099
Visa: USC/GC/H4-EAD
* The tech job market has become incredibly competitive, and international professionals face additional barriers.
* This makes it essential to have niche, in-demand skills to compete in the job market.
11. Don’t Hold Onto Stagnant Jobs
* A common mistake H1-B professionals make is staying in the same job or skill set for years, just to maintain visa status.
* The work you’re doing may become outdated, making it harder to find a new job if you lose your current one.
* Key Tip: Upskill regularly to stay relevant in the job market. Learn new technologies, pursue certifications, and adapt to industry trends.
12. Switching Employers on an H1-B Visa
* H1-B visa holders can change employers, but the process is complex.
* Before making the move, assess the U.S. job market carefully.
* If you find a job that aligns with your career growth and offers the right wages, go for it.
* The U.S. tech market is still a valuable experience, but preparation is key.
13. Key Advice for Aspiring H1-B Professionals
* If you’re considering moving abroad on an H1-B visa, here’s my advice:
* Do thorough research on work culture, wages, job market conditions, and cost of living.
* Discuss the move with your family and plan every detail—don’t rely on assumptions or outdated narratives.
* Understand that this move is temporary and treat it as a career-growth opportunity rather than a permanent settlement plan.
14. Closing Thoughts
* Moving to the U.S. on an H1-B visa can be a valuable experience, but it requires careful planning and realistic expectations.
* Many challenges can be avoided by understanding the financial, professional, and cultural aspects of the move.
* The goal is to help you make an informed decision and avoid the struggles that many professionals have faced in recent years.
That is all for this week. See you again.
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