The United States government has proposed a major increase in the minimum salaries employers must pay foreign workers hired under the H-1B visa programme. The proposal, introduced by the US Department of Labour on March 27, is currently open for public comments until May 26, per a report by Hindustan Times.
According to the administration, the move is intended to strengthen wage protections for American workers and update salary benchmarks that have remained largely unchanged for nearly two decades. The changes could significantly affect hiring patterns, particularly in the technology sector, where H-1B visas are widely used.
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What mew proposal includes
The proposed rule, titled "Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States", seeks to increase prevailing wages across four worker categories by roughly 30 per cent, per HT report.
At present, the minimum prevailing wages are set at USD 73,279 annually for entry-level workers, USD 98,987 for Level II, USD 1,21,979 for Level III and USD 1,44,202 for Level IV employees.
Under the revised proposal, entry-level wages would rise to USD 97,746, marking a 33.39 per cent increase. Level II wages would increase to USD 1,23,212, while Level III salaries would go up to USD 1,47,333. Level IV wages would rise to USD 1,75,464.
The revised wage structure would apply to the H-1B, H-1B1, E-3 and PERM labour certification programmes. Wage rates, however, would still vary depending on the city and local labour market conditions.
Debate around the proposal
The proposal has triggered mixed reactions. Supporters argue the wage levels have not been updated in nearly 20 years, allowing employers to pay foreign workers less than American employees in similar positions.
Critics, however, believe the higher wage requirements may make it difficult for smaller firms and startups to hire foreign talent, especially for entry-level roles.
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This is not the first attempt to revise H-1B wage rules. During his earlier term, Donald Trump had pushed for similar changes in 2020, but the move faced legal challenges and was later withdrawn.
Last year, the administration had also imposed a USD 1,00,000 fee on H-1B applicants outside the US through a presidential order issued on September 19, 2025. Once the current public comment period ends on May 26, the Department of Labor will review the feedback before issuing a final decision.
