US to hike minimum wage for entry-level H-1B visa holders by over $24k: Why is US raising wages?

Starting April 1, 2026, the US is making important changes to the H-1B visa program, which allows foreign workers to come to the country for temporary work. Employers will now be required to pay foreign workers higher wages, especially those in entry-level positions. This is part of a new rule aimed at ensuring fair pay for foreign workers and protecting U.S. jobs.

Why is the US raising wages?

The US government says the change is necessary to make sure foreign workers aren't paid less than US workers doing similar jobs. The goal is to ensure fair wages for foreign workers, not to replace American workers with cheaper labour.

How much will wages increase?

For entry-level H-1B workers, wages are expected to rise by $24,467. Currently, entry-level workers make about $73,279, but under the new rules, they will need to earn at least $97,746. The wage increase applies to multiple levels of workers, not just entry-level positions, and will impact a variety of visa categories.

Key changes to the wage system:

The new wage framework, which includes higher thresholds for all four levels of H-1B positions, is a direct response to this imbalance. As per the proposed adjustments, the wage requirements will move to the following percentiles for each level:

• Level I (Entry-Level): 17th percentile → 34th percentile (+33.4% increase)
• Level II (Qualified): 34th percentile → 52nd percentile (+24.5% increase)
• Level III (Experienced): 50th percentile → 70th percentile (+20.8% increase)
• Level IV (Fully Competent): 67th percentile → 88th percentile (+21.7% increase)

What does this mean for employers?

Employers who want to hire foreign workers on H-1B visas will now have to pay higher wages. They’ll also need to provide more detailed information about the job, including the qualifications required, job responsibilities, and the worker's pay.

Why is this change happening?

The U.S. Department of Labour is making these changes for three main reasons:

1. The previous system didn’t reflect real wages: The old system set wages too low for many skilled workers.

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2. Fairness: Some employers were paying foreign workers less than U.S. workers for the same jobs.

3. Protecting U.S. workers: The new rule will prevent employers from using foreign workers to replace U.S. workers at lower wages.

What else is changing?

The new rule also means that employers must fill out updated forms and provide more details about the job and the salary being offered. The government is looking to ensure that wages paid to foreign workers are in line with those of U.S. workers with similar skills.