Hiring H-1B workers may get costlier under new US wage proposal

The United States has proposed increasing the minimum wages paid to foreign workers hired under the H-1B visa programme by up to 30 per cent, saying the move is aimed at stopping companies from undercutting the salaries of American workers. 

The proposed rule was introduced by the US Department of Labour on March 27 and is currently open for public comments until May 26, according to a report by PTI.

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Under the proposal, the department plans to revise wage levels across four categories, from entry-level workers to the most experienced employees. The current wage structure was set nearly 20 years ago and no longer reflects present-day labour market conditions.

Higher wages proposed across all levels

According to the proposed rule, titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States”, the existing prevailing wages for foreign workers are:

• $73,279 per year for entry-level workers
• $98,987 for Level II workers
• $121,979 for Level III workers
• $144,202 for Level IV workers

The new proposal seeks to raise those wage levels to:

• $97,746 for entry-level workers, an increase of 33.39 per cent
• $123,212 for Level II workers, up 24.47 per cent
• $147,333 for Level III workers, up 20.79 per cent
• $175,464 for Level IV workers, up 21.68 per cent

The Department of Labour noted that prevailing wages vary from city to city across the US.

'Current system harms US workers'

According to the department, the current wage calculation system allows employers to hire foreign workers at salaries “significantly below” those paid to similarly employed US workers.

The proposed changes would affect wage levels used in the H-1B, H-1B1, E-3 and PERM labour certification programmes.

Officials say the revision is intended to strengthen wage protections for American employees while ensuring that foreign workers are paid fairly.

Mixed reaction from industry

The proposal has triggered mixed responses from businesses and industry groups. 

Supporters say the higher wage requirements could reduce the misuse of visa programmes and protect domestic workers.

However, critics argue that the changes may make it difficult for smaller companies to hire entry-level employees or fresh graduates because of the higher salary requirements.

The public comment period will remain open until May 26, after which the Department of Labour will review responses before issuing a final rule.

A similar move faced legal challenges earlier

During his first term, President Donald Trump attempted to revise prevailing wage rules in 2020 without prior notice or public consultation. The move later faced legal challenges and was eventually shelved.

Last year, the administration also imposed a $100,000 fee on H-1B candidates applying from outside the US through a presidential order issued on September 19, 2025.

The same order directed the Secretary of Labour to begin rulemaking to revise prevailing wage levels under the H-1B programme.