US plans on EB, H-1B visa wage hike: What it means for Indian workers and freshers

The United States is moving to revamp how salaries are set for foreign workers, with a proposal that could push up pay across both temporary work visas and employment-based green card routes, while reshaping hiring trends for entry-level roles.

The US Department of Labor has issued a Notice of Proposed Rulemaking to revise how “prevailing wages” are calculated for foreign workers hired under visa programs such as H-1B, H-1B1 and E-3, as well as permanent immigration pathways like EB-2 and EB-3 through the PERM labour certification system.

At the heart of the proposal is a shift to align wages offered to foreign workers more closely with what US workers earn in similar roles and locations, using updated data from the Bureau of Labor Statistics.

What the policy proposes

The department said it is seeking to update regulations governing both the PERM program and Labor Condition Applications, which underpin hiring for temporary and permanent foreign workers.

“These proposed revisions aim to better align prevailing wage levels with the wages paid to U.S. workers who are similarly employed in the occupation and area of intended employment.”

The proposal also targets misuse of visa programs by employers offering lower wages.

“The Department’s proposed revisions also seek to strengthen program integrity by reducing the incentive for employers to use these programs to replace, rather than supplement, U.S. workers by employing lower-paid alien workers.”

It added that the change would ensure foreign hiring does not adversely affect domestic workers.

“The revision would enable the Department to more effectively ensure that the employment of immigrant and nonimmigrant workers admitted or otherwise provided one of the covered statuses does not adversely affect the wages and working conditions of U.S. workers.”

Why wages could rise sharply

Currently, wages for H-1B and similar visas are determined using a four-tier system based on experience levels. Entry-level roles, or Level I wages, are set at the 17th percentile for a given job and location.

The proposal seeks to raise this to the 34th percentile, effectively pushing entry-level pay closer to what mid-level workers earn today.

This change would increase the minimum salary employers must offer, particularly for fresh graduates and early-career hires.

Impact on hiring and entry-level jobs

Higher wage floors could raise hiring costs and make companies more selective. Entry-level foreign workers may find fewer opportunities, as employers could shift focus to experienced hires or domestic candidates.

The H-1B system is also moving toward favouring higher-paying roles, which could further limit entry-level access.

Officials say the current wage framework has remained outdated for years, allowing some employers to hire foreign workers at below-market rates.

Government’s position

US Labour Secretary Lori Chavez-DeRemer said the changes are aimed at protecting American workers and ensuring fair wages.

“The Trump Administration is committed to ensuring that American workers are not disadvantaged by unfair wage practices,” she said.

“This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labour, in addition to protecting the wages and job opportunities of American workers. The continued abuse of the H-1B program by certain bad actors will no longer be tolerated.”

Explainer: What this means for Indians

Indians make up the largest share of H-1B visa holders and a significant portion of applicants under EB-2 and EB-3 green card categories.

If implemented, the proposal could lead to higher salaries for skilled Indian professionals, particularly those with experience. However, it could make it harder for fresh graduates and entry-level applicants to secure roles due to higher wage thresholds.

At the same time, aligning wages with market levels could reduce underpayment and improve parity with US workers, benefiting experienced Indian professionals over the long term.