US proposes 30% H1B wage hike to stop foreigners from undercutting American worker salaries: Impact on Indians
The proposed rule would raise minimum wages across the H-1 B programme by 30 per cent above previously set limits
- May 12, 2026,
- Updated May 12, 2026 7:45 AM IST
The United States wants to make hiring foreign workers under the H-1 B visa programme significantly more expensive, and it is framing the move as long-overdue protection for American workers.
The proposed rule would raise minimum wages across the H-1 B programme by 30 per cent above previously set limits. The administration's argument is straightforward: the existing wage levels have not been revised in 20 years and have allowed employers to hire foreign workers at rates well below those earned by similarly employed US nationals.
What the proposal changes
The new rule targets four wage categories, covering workers from entry-level to the most experienced. For entry-level roles, the proposed prevailing wage would rise to $97,746, a jump of 33.39 per cent over current rates. Prevailing wages vary by city, meaning the actual figures differ depending on where the job is located.
The proposed changes would apply across the:
- H1B
- H1B1
- E-3
- PERM labour certification programmes.
According to the Department of Labour, the current methodology has created a gap wide enough for employers to legally pay foreign hires significantly less than their American counterparts in equivalent roles.
The pushback
The proposal has drawn a divided response. Supporters back the move as a necessary correction to wage floors that have been static for two decades. Critics, however, warn that smaller companies may no longer be able to afford foreign hires for entry-level positions if the higher wage thresholds are enforced.
The rule is currently open for public comments until May 26. After that window closes, the Department of Labour will review the responses before notifying the final rule.
For Indian technology professionals, who make up a significant share of H1B visa holders, the outcome of this process could reshape hiring pipelines, starting salaries, and the economics of working in the United States.
The United States wants to make hiring foreign workers under the H-1 B visa programme significantly more expensive, and it is framing the move as long-overdue protection for American workers.
The proposed rule would raise minimum wages across the H-1 B programme by 30 per cent above previously set limits. The administration's argument is straightforward: the existing wage levels have not been revised in 20 years and have allowed employers to hire foreign workers at rates well below those earned by similarly employed US nationals.
What the proposal changes
The new rule targets four wage categories, covering workers from entry-level to the most experienced. For entry-level roles, the proposed prevailing wage would rise to $97,746, a jump of 33.39 per cent over current rates. Prevailing wages vary by city, meaning the actual figures differ depending on where the job is located.
The proposed changes would apply across the:
- H1B
- H1B1
- E-3
- PERM labour certification programmes.
According to the Department of Labour, the current methodology has created a gap wide enough for employers to legally pay foreign hires significantly less than their American counterparts in equivalent roles.
The pushback
The proposal has drawn a divided response. Supporters back the move as a necessary correction to wage floors that have been static for two decades. Critics, however, warn that smaller companies may no longer be able to afford foreign hires for entry-level positions if the higher wage thresholds are enforced.
The rule is currently open for public comments until May 26. After that window closes, the Department of Labour will review the responses before notifying the final rule.
For Indian technology professionals, who make up a significant share of H1B visa holders, the outcome of this process could reshape hiring pipelines, starting salaries, and the economics of working in the United States.