Immigration

H-1B 'Ban' 2026 Explained: The PERM Suspension on TCS, Infosys & Microsoft, and the Best Alternatives for Indians

The US has not banned H-1B visas. On 8 October 2026 it froze PERM green-card filings for eight companies, including Microsoft, TCS and Infosys. Here is who is affected, what it means for your H-1B, and how Canada, Australia, New Zealand, the UK, Ireland and Germany compare as alternatives.

By PTEVega Editorial Team · October 12, 2026 · 16 min read

Last updated: 12 October 2026. This is a developing story: we will update this page as the US Department of Labor publishes written details.

Short answer: The US has not banned H-1B visas. On 8 October 2026, the US Department of Labor (DOL) suspended PERM labour certification, the first step of most employer-sponsored green cards, for eight companies: Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant and Capgemini. Existing H-1B visas and H-1B status are not cancelled. The people most exposed are employees of these firms who are waiting for a green card, especially those close to the six-year H-1B limit.

If this news has you rethinking a US-only plan, Canada, Australia, New Zealand, the UK, Ireland and Germany all have active skilled-worker routes in 2026. Most of them need a recognised English test. Below we explain what actually changed, who is affected, and how the alternatives compare, with official sources for every claim.

Key takeaways

• What was suspended: new and pending PERM applications involving the eight named companies. In Labor Secretary Keith Sonderling's words: "We will not accept any new or process any pending permanent labor certification applications involving these companies."
• What was not suspended: H-1B status, existing H-1B visas, or H-4 dependants. India's Ministry of External Affairs said the suspension "does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents."
• How long: no end date. Vice President JD Vance said it will last "as long as it needs to."
• Who is most at risk: workers with a pending PERM at one of these firms, and H-1B holders near year six who have no PERM or I-140 on file yet.
• Not just Indian companies: Microsoft and Adobe are American, Cognizant is headquartered in the US and Capgemini is French.
• Plan B: Canada needs PTE Core or IELTS General Training, Australia and New Zealand need PTE Academic or IELTS, and the UK needs PTE Academic UKVI or IELTS for UKVI. Picking the wrong test is one of the most common, and most expensive, mistakes.

What happened on 8 October 2026?

At a White House event on Thursday 8 October 2026, Vice President JD Vance announced that Microsoft was being suspended from the PERM programme. Labor Secretary Keith Sonderling then named the other seven companies: Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini.

Officials cited alleged fraud and abuse of the programme, including claims of sham recruitment for jobs later filled by foreign workers. Vance singled out Microsoft, saying it laid off about 6,000 US workers last year while receiving about 6,300 H-1B approvals. These are allegations: as of 12 October 2026 no charges had been announced against any of the eight companies. Officials said investigations are under way, including by the DOL's Office of Inspector General, which opened a broad H-1B and PERM fraud investigation in July 2026.

At the same event, officials said nine US universities (including Harvard, MIT and Stanford) had been subpoenaed over the J-1 exchange-visitor programme. That probe is separate and has not changed anyone's J-1 eligibility.

Company responses so far:

• Microsoft said about 80% of its roughly 6,000 H-1B applications last fiscal year were to extend or change status for people already working there, and that new H-1B hires equal about 1% of its US workforce.
• Infosys told Indian stock exchanges it does not expect the suspension to have a material impact.
• TCS said it filed only a single-digit number of PERM applications in the past two years and will comply with any DOL directive.

Is this an H-1B ban? What changed and what didn't

What is PERM? PERM is the Department of Labor's permanent labour certification. Before most employers can sponsor a foreign worker for a green card (EB-2 or EB-3), they must prove to the DOL that no qualified US worker is available for the job. Only after PERM is certified can the employer file the I-140 immigrant petition. Freezing PERM therefore freezes the start of the green-card process, not the H-1B work visa itself.

The legal basis has not been stated by the DOL. Immigration lawyers point to 20 CFR 656.31, which lets the DOL suspend PERM processing for an employer during a fraud investigation, initially for up to 180 days and longer if a case is brought. The DOL used the same power against Cloudera in May 2026 (a 180-day suspension), and the DOL's Inspector General reportedly announced a PERM suspension for Cognizant in September 2026.

What it means for you: situation by situation

These are general patterns based on law-firm analysis published since the announcement. Your exact position depends on your file, so check with your employer's immigration attorney.

The bigger picture: other H-1B changes in 2025–26

The PERM suspension is the latest in a series of US moves on skilled immigration. Many articles mix these up, so here is where each stands as of 12 October 2026:

• $100,000 H-1B payment (Proclamation, September 2025): applies to certain new H-1B petitions for workers outside the US, not to extensions or changes of status inside the US. In June 2026 a federal court in Massachusetts vacated USCIS's implementing guidance. USCIS says it is complying with that order while it considers next steps, and plans to collect the payment if the order is lifted. The proclamation was renewed in September 2026 and litigation continues.
• Wage-weighted H-1B lottery: in force from the FY2027 cap season. Registrations at higher wage levels get more entries (Level IV gets four, Level I gets one). USCIS announcement.
• Proposed $103,265 fee on cap-subject H-1B petitions: a DHS proposal published in August 2026. It is not in effect.
• Proposed end of the 60-day grace period after job loss: a DHS proposal published in September 2026, with comments open until 10 November 2026. It is not in effect, and the 60-day grace period still applies today.

The direction is clear: the US route is getting more expensive, more selective and less predictable. That is why many Indian professionals and students are now building a parallel plan rather than waiting.

Best H-1B alternatives for Indians in 2026: country comparison

🇨🇦 Canada: big targets, but read the fine print

Canada plans to admit 380,000 permanent residents a year from 2026 to 2028, with 109,000 of those places in 2026 for Express Entry ("Federal High Skilled") (IRCC levels plan).

The catch for Indian IT professionals:

• Express Entry is now category-driven. In 2026, invitations have gone mainly to Canadian Experience Class candidates, French speakers, healthcare and trades workers, and provincial nominees. IRCC's rounds data shows no all-programme or STEM-category draw since April 2024.
• Software roles are not on the 2026 STEM list. Software engineers (NOC 21231), software developers (21232) and data scientists (21211) are not included (IRCC category-based selection).
• The promised H-1B pathway has not launched. Canada's Budget 2025 promised "an accelerated pathway for H-1B visa holders", but as of 12 October 2026 IRCC has not published eligibility rules or an opening date. Be wary of anyone selling "H-1B to Canada PR" packages before IRCC confirms it.

English test: Express Entry accepts PTE Core, IELTS General Training and CELPIP. PTE Academic and IELTS Academic are not accepted (IRCC language tests). Results must be less than two years old. The minimum for the Federal Skilled Worker program is CLB 7. In practice, CLB 9 or higher adds a lot of CRS points:

Best for: people who can get Canadian work experience (for example through study and a post-graduation work permit), French speakers, and anyone with a provincial nomination.

🇦🇺 Australia: employer sponsorship is the way in

Australia's 2026–27 Migration Program keeps 185,000 places, and employer-sponsored places rise to 58,040 (from 44,000), while regional places fall (Home Affairs planning levels).

• Skills in Demand visa (subclass 482): from 1 July 2026 the Core Skills stream needs a salary of at least AUD 79,423. Software engineer, developer programmer and analyst programmer are on the Core Skills list. After about two years with your sponsor, you can move to permanent residence through subclass 186.
• Points-tested visas (189/190/491): the pass mark is 65, but competition decides who gets invited. In the 2025–26 subclass 189 rounds, software engineers, developer programmers, analyst programmers and ICT business analysts received no invitations (SkillSelect rounds).
• ICT skills assessment: most IT applicants need a positive assessment from the Australian Computer Society (ACS).

English test: PTE Academic or IELTS, taken at a test centre. PTE Core is not accepted for Australia. English gives you up to 20 points, and the PTE score bands changed on 7 August 2025 (Home Affairs English requirements):

Best for: IT professionals who can land an Australian employer sponsor, and students planning to build experience in Australia. If you go the points route, Superior English is the single biggest lever you control.

🇳🇿 New Zealand: a direct route for software roles

• Green List, Straight to Residence: roles including Software Engineer, Developer Programmer, Analyst Programmer, ICT Security Specialist and ICT Project Manager are on Tier 1, which lets you apply for residence straight away with a qualifying job offer. These ICT roles carry a minimum pay rate (about NZD 70 an hour from 23 March 2026), so check the current Green List before you apply.
• Skilled Migrant Category: reworked from 24 August 2026. It uses a six-point system based on qualifications, NZ occupational registration or income, plus skilled work in New Zealand, and needs a job offer from an accredited employer (Immigration New Zealand).

English test: for skilled residence, PTE Academic 58 or IELTS 6.5 overall (TOEFL iBT, B2 First and OET also accepted). PTE Core is not listed.

Best for: software professionals with an NZ job offer at the Green List rate, or graduates willing to work in New Zealand for a year or more first.

🇬🇧 United Kingdom: Skilled Worker visa with a higher bar

• Salary: at least £41,700 or the occupation's going rate, whichever is higher. The going rate for programmers and software developers is £54,700 (gov.uk going rates). You need a job with a licensed sponsor.
• English: B2 level for new Skilled Worker applicants from 8 January 2026, proved with a Secure English Language Test (SELT). For Pearson that means PTE Academic UKVI (or PTE Home), not the regular PTE Academic. IELTS for UKVI also counts (gov.uk SELT list).
• Settlement: currently usually after five years. The government has consulted on "earned settlement" with a longer baseline (a 10-year default was proposed), but it is not law yet (consultation).
• Students: the Graduate visa drops from two years to 18 months for applications made from 1 January 2027.

Best for: experienced IT professionals with a UK sponsor paying the going rate.

🇮🇪 Ireland: the quiet English-speaking option

• Critical Skills Employment Permit: from 1 March 2026 the minimum salary is €40,904 for listed roles with a relevant degree, or €68,911 for any eligible role. ICT roles such as software developers and IT business analysts are on the list. There is no labour market test, and your family can join you immediately (enterprise.gov.ie).
• After 21 months you can usually move to Stamp 4, which lets you work without a permit.
• No English test is required for the employment permit itself.

Best for: software professionals with a degree and an Irish job offer. It is an EU base with English as the working language.

🇩🇪 Germany: EU Blue Card and the Opportunity Card

• EU Blue Card 2026: a salary of at least €50,700, or €45,934.20 for shortage occupations (IT counts) and recent graduates. IT specialists without a degree can qualify with three years of relevant experience. There is no language requirement for the Blue Card, and you can get permanent settlement after 27 months (21 months with B1 German) (Make it in Germany).
• Opportunity Card (Chancenkarte): a points-based visa for up to 12 months to look for work, with part-time work allowed. You need English at B2 or German at A1, plus proof of funds (€1,091 a month in 2026).
• Important for Indian applicants: the German Missions in India state that PTE, Duolingo and TOEFL online results are not accepted as language proof for the Opportunity Card (German Missions in India). Confirm which certificate they will accept before you book a test.

Best for: IT professionals with an offer of about €46,000 or more who are willing to learn German. Indians were the largest group of new EU Blue Card holders in Germany in 2025.

Which English test do you need? PTE Core vs PTE Academic vs IELTS

PTE or IELTS? Both are accepted for most migration routes above. PTE is fully computer-scored, results usually arrive within about two days, and many Indian test-takers find its format faster to master. IELTS has a paper or computer option and a speaking test with a human examiner. Choose the one whose format suits you, then train specifically for it.

Prepare for free with PTEVega and IELTSVega

• Taking PTE? PTEVega gives you free PTE practice questions for both PTE Academic and PTE Core, full-length mock tests, and AI scoring for speaking and writing, so you know your likely score before you book. Start with free practice or the complete study guide. If you are chasing Australia's Superior band, read our guide on how to score 79+ in PTE.
• Taking IELTS? Our sister platform IELTSVega offers IELTS practice for Academic and General Training, AI band scoring for writing and speaking, and full mock tests.

A 30-day action plan if you work at an affected company

1. Get the facts on your own file. Ask your employer's immigration counsel for the status of your PERM or I-140, your priority date, and the exact date you reach six years on H-1B.
2. Map your US options. These include moving to an employer that is not suspended, or an EB-1A or EB-2 NIW self-petition if your profile is strong.
3. Shortlist one or two backup countries using the table above, based on your occupation, salary level and family situation.
4. Start the slow paperwork now. That means an education assessment (for example WES for Canada), an ACS skills assessment for Australia, and gathering employment reference letters.
5. Book the right English test and aim high. Target CLB 9+ for Canada and Superior for Australia: English is the fastest way to add points.
6. Get a personalised pathway check. Book a free consultation with Vega Immigration.

Free consultation with Vega Immigration

Not sure which country fits your profile, or whether to wait for the US to clarify? Share your details in the form below. The Vega Immigration team will come back within one business day with the pathways that match your occupation, experience, budget and timeline. It is free, with no obligation. Request your free consultation.

Frequently asked questions

Is the US banning H-1B visas for Indians?

No. The October 2026 action suspends PERM green-card labour certification for eight specific companies. It does not cancel H-1B visas or H-1B status, and it is not limited to Indian companies: Microsoft and Adobe are American firms. India's Ministry of External Affairs said it does not, by itself, affect existing H-1B visas or dependants.

Which companies are affected by the PERM suspension?

Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant and Capgemini, as announced on 8 October 2026. Cloudera received a separate 180-day PERM suspension in May 2026.

Will my H-1B extension be rejected if I work for TCS, Infosys or Microsoft?

There is no official order suspending H-1B extensions. However, immigration lawyers have reported delays on some extensions at affected companies, and anyone who needs a PERM-based extension beyond six years is exposed. Speak to your employer's immigration attorney about your specific case.

How long will the suspension last?

No end date has been announced. Under the regulation lawyers believe applies (20 CFR 656.31), a first suspension runs for up to 180 days and can be extended while an investigation or prosecution continues. Vice President Vance said it will last "as long as it needs to."

Is the $100,000 H-1B fee still in effect?

It is tied up in court. In June 2026 a federal court vacated USCIS's guidance for collecting it, and USCIS says it is complying while it considers next steps. The fee only ever applied to certain new petitions for workers outside the US. Check the USCIS H-1B FAQ before acting.

Can I use PTE Academic for Canada PR?

No. For Express Entry and other economic immigration, Canada accepts PTE Core (since 30 January 2024), IELTS General Training and CELPIP. PTE Academic is accepted by Canadian universities for admission, but not by IRCC for PR.

Does Canada have a special pathway for H-1B holders?

Not right now. Canada ran an H-1B open work permit in 2023, which closed after reaching its cap. Budget 2025 promised a new accelerated pathway, but as of 12 October 2026 IRCC has not launched it or published its rules.

Which country is easiest for Indian IT professionals to get PR in 2026?

There is no single answer, because it depends on your occupation, salary, age and whether you have a job offer. As of October 2026: New Zealand (Green List) and Germany (EU Blue Card) offer the most direct routes with a job offer. Australia works best with employer sponsorship. Canada favours people with Canadian experience or French. Ireland is a strong option if you have an offer in a listed ICT role.

PTE or IELTS: which is better for migration?

Both are accepted for Australia, New Zealand and (in their UKVI versions) the UK. For Canada you need PTE Core or IELTS General Training. PTE is computer-scored with fast results; IELTS uses a human speaking examiner. Choose the format that suits you and practise with full mock tests. PTEVega is free for PTE, and IELTSVega covers IELTS.

Sources

• TIME, "US immigration visa fraud: green card, H-1B, J-1, Microsoft, Adobe" (9 Oct 2026): time.com
• AP via PBS NewsHour (8 Oct 2026): pbs.org
• Microsoft On the Issues (8 Oct 2026): blogs.microsoft.com
• India MEA briefing via ANI (9 Oct 2026): aninews.in
• US DOL release on the Cloudera PERM suspension (12 May 2026): dol.gov
• 20 CFR 656.31, PERM suspension and debarment: law.cornell.edu
• USCIS H-1B FAQ and weighted selection: uscis.gov
• IRCC: Express Entry language tests, category-based selection, 2026–2028 levels plan: canada.ca
• Australian Department of Home Affairs: planning levels, SkillSelect, English requirements: immi.homeaffairs.gov.au
• Immigration New Zealand: Straight to Residence and Skilled Migrant Category: immigration.govt.nz
• UK Home Office: Skilled Worker visa, SELTs, earned settlement consultation: gov.uk
• Ireland DETE: Critical Skills Employment Permit: enterprise.gov.ie
• Make it in Germany and German Missions in India: make-it-in-germany.com, india.diplo.de

This article is general information, not legal or immigration advice. Rules change often, so confirm details on the official government websites linked above. For a US case, consult a licensed US immigration attorney. For other countries, consult an adviser authorised for that country (for example a MARA-registered agent for Australia, an RCIC for Canada, an OISC-regulated adviser for the UK or an IAA-licensed adviser for New Zealand).

Tags: H-1B, PERM, Green Card, US Immigration, Canada PR, Australia PR, UK Skilled Worker, Germany Blue Card, PTE Core, IELTS