EOR & Compliance Digest, July 29: The H-1B Cap Reached for FY2027, Now What?

The H-1B cap reached its full 85,000 slots for fiscal year 2027 on July 17. USCIS will not run a second lottery. If your hiring plan depended on sponsoring an international engineer this year, that door is closed until spring 2027. Meanwhile, three payroll stories move fast enough to affect this week’s run. The Philippines just handed Metro Manila workers its largest single wage-order increase on record. The Netherlands raised its wage ceilings again. And Brazil’s top court paused fines on a mental health rule founders were scrambling to meet. Here is what changed, and what to do about each one.

H-1B Cap Reached for FY2027: No Second Lottery, Fewer Registrations

What Changed

U.S. Citizenship and Immigration Services confirmed on July 17 that it had received enough petitions to meet the congressionally mandated H-1B cap for fiscal year 2027. That is 65,000 regular slots plus 20,000 for the advanced-degree exemption. The filing window ran from April 1 to June 30. USCIS will not hold a second selection round this year. It did not run one in FY 2026 either, according to Ogletree Deakins’ analysis. This was the first full cycle under the Department of Homeland Security’s wage-based selection rule. As a result, registrations tied to higher salary bands received extra entries in the lottery. USCIS also rolled out a new Form I-129 that demands more detail on job terms. The numbers moved as expected. Initial registrations fell to roughly 211,600, down 38.5 percent from 343,981 the year before. And 71.5 percent of selected beneficiaries held U.S. advanced degrees, up from 57 percent in FY 2026.

Why It Matters for Distributed Teams

If you have a candidate who needs H-1B sponsorship, cap-subject filing is closed for now. It will not reopen until the FY 2028 registration window next spring. That does not mean hiring internationally is closed too. Cap-exempt employers, including universities and nonprofit research organizations, can still file year-round. Founders can also route the hire through an Employer of Record in the candidate’s home country instead. Other options include O-1 or L-1 categories for qualifying candidates, or an F-1 STEM OPT extension while a longer-term plan takes shape. Brief hiring managers now. If a requisition assumed H-1B sponsorship as the default path for a non-U.S. citizen, that assumption needs a rewrite before recruiting starts again in the fall. Visa sponsorship is one lane among several, not the only one.

Philippines Delivers Its Biggest Wage Jump on Record

Metro Manila workers got the largest single wage-order increase in the region’s history this month. The Regional Tripartite Wages and Productivity Board for the National Capital Region published Wage Order No. 27 on July 9. The first tranche took effect July 25, four days before this digest. Non-agricultural workers moved from 695 pesos to 755 pesos a day. Workers at small retail and service establishments with 15 or fewer staff moved from 658 pesos to 718 pesos. So did manufacturing firms with fewer than 10 regular workers. A second tranche lands January 20, 2027, pushing the two rates to 780 pesos and 743 pesos. Labor officials called it an 85-peso increase overall, the biggest the capital region has ever approved in one order. If you run payroll for contractors or EOR staff in the Philippines, confirm which tranche applies to each role now. The January step change is close enough that it belongs in this quarter’s budget planning, not next year’s.

The Netherlands Raises Its Wage Ceilings Again

Dutch payroll numbers moved twice this month. The statutory minimum wage for employees 21 and older rose from 14.71 euros to 14.99 euros an hour on July 1. This is part of the twice-yearly adjustment the government runs every January and July. Separately, the maximum daily wage that the Employee Insurance Agency uses to cap sick-pay and benefit calculations rose to 309.91 euros, up from 304.25 euros in January. The tax-free travel allowance also increased, from 0.23 euros to 0.25 euros per kilometer, retroactive to January 1. There is a less visible change worth flagging too. The Dutch Tax Administration resumed enforcement against false self-employment this year, after postponing it for several years. Fines stay limited during a “soft landing” period through the end of 2026. However, full penalties, including retroactive tax assessments, start January 1, 2027. Anyone using contractor arrangements in the Netherlands should review those contracts against the local salary structure rules well before that date.

Brazil’s Top Court Pauses Mental Health Fines, Not the Rule

Brazil’s Supreme Federal Court gave employers breathing room on a rule that had compliance teams scrambling. On June 25, Justice Andre Mendonca granted a preliminary order in a constitutional challenge. It suspends for 90 days the use of five specific provisions in Regulatory Standard NR-1 as grounds for fines or sanctions. The provisions require employers to fold psychosocial risks into their occupational risk management programs. Think burnout, harassment, and excessive workloads. The pause covers every company in Brazil, not just the school association that brought the case. It does not touch the underlying rule, however. Employers still have to identify psychosocial risks and document a plan. Inspectors can still show up and ask for it. Only the fines are frozen, and only until around September 23. The full court is scheduled to review the order between August 7 and 18. That review could extend the pause, narrow it, or let the fines resume early. Treat the 90 days as a grace period for finishing the required documentation under Brazilian employment law, not a reason to stop.

Quick Hits

• United States: The $250 Visa Integrity Fee created by last year’s budget law is still rolling out unevenly. Some consulates charge it at visa issuance; others have not turned on the system yet. Budget for it on every nonimmigrant visa category through at least September 30.
• Mexico: The phased cut to the standard workweek holds at 48 hours through the rest of 2026. The first reduction, to 46 hours, arrives in 2027. Further steps down to 40 hours follow by 2030.
• Canada (Ontario): Employers with 25 or more staff must still disclose AI use in screening or selection inside every public job posting and application form. The rule took effect January 1 and is still catching employers off guard.

Action Items After the H-1B Cap Reached FY2027’s Limit

• United States: Tell hiring managers cap-subject H-1B filing is closed until spring 2027. Line up EOR, O-1, or L-1 alternatives for candidates who need work authorization now.
• Philippines: Confirm which NCR wage tranche applies to each contractor or EOR employee, July 25 or January 20, 2027. Update payroll budgets this quarter.
• Netherlands: Re-check contractor agreements against false self-employment rules before the “soft landing” period ends January 1, 2027.
• Brazil: Keep building out psychosocial risk documentation. The fine pause ends around September 23, and the Supreme Court’s August 7-18 review could restart enforcement early.
• Global: Audit every EOR-supported hire against this week’s four changes before your next payroll run.

None of these four stories will show up in a standard payroll report until something breaks. Asanify’s Global HRMS keeps country-specific wage floors, contractor classification flags, and visa status in one place. So a change like the Philippines wage order or the Dutch daily wage cap gets caught before it becomes a compliance gap. If you are hiring across two or more of the countries above, it is worth a quick audit this week.

Frequently Asked Questions

Is the H-1B cap reached for good this fiscal year?

Yes. USCIS confirmed on July 17, 2026 that both the regular 65,000-slot cap and the 20,000-slot advanced-degree exemption for fiscal year 2027 are full. It will not run a second lottery. Cap-subject H-1B filing will not reopen until the FY 2028 registration window in spring 2027.

Can I still hire an international candidate if the H-1B cap is closed?

Yes, through routes that do not depend on the annual lottery. Cap-exempt employers such as universities, O-1 and L-1 categories for qualifying candidates, F-1 STEM OPT extensions, and Employer of Record arrangements in the candidate’s home country all remain open.

When do the new Philippines minimum wage rates take full effect?

The first tranche of Wage Order No. 27 took effect July 25, 2026. That raised Metro Manila’s non-agricultural minimum wage to 755 pesos a day. The second tranche arrives January 20, 2027, bringing it to 780 pesos.

Are Brazilian employers still required to manage psychosocial risk under NR-1?

Yes. The Supreme Federal Court only suspended the fines and sanctions tied to five specific NR-1 provisions for 90 days from June 25, 2026. The underlying requirement to assess and document psychosocial risks in your occupational risk management program still applies.

What is the Dutch maximum daily wage and why does it matter for payroll?

It is the ceiling the Dutch Employee Insurance Agency uses to calculate sick pay and benefit contributions. It rose to 309.91 euros on July 1, 2026. Employers with staff earning near that ceiling should recheck sick-pay calculations to stay compliant.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.