US Plans Major H-1B Wage Increase, New Proposal Could Raise Hiring Costs for Foreign Workers

Washington (Rajeev Sharma): The United States administration has unveiled a proposal to significantly raise the minimum salary requirements for companies hiring workers under the H-1B visa programme, with wage thresholds expected to increase by nearly 30 per cent across multiple categories.

The proposed revision, introduced by the US Department of Labor, aims to strengthen salary protections for American workers and ensure foreign professionals are not hired at lower wage rates than local employees.

Under the draft framework, salary benchmarks across four experience levels would see substantial hikes. Entry-level H-1B workers could see the minimum salary requirement rise to nearly $98,000 annually, while higher-level categories may exceed $175,000 depending on skill level and location.

Officials argued that the existing wage structure, which has remained largely unchanged for nearly two decades, no longer reflects current market realities. The administration said outdated salary standards have allowed some employers to bring in foreign workers at lower compensation levels, creating unfair competition for domestic professionals.

The revised wage system would affect several visa categories, including H-1B, H-1B1, E-3, and permanent labor certification programmes.

The proposal has triggered mixed reactions from industry stakeholders. Supporters believe the move will discourage salary manipulation and protect US workers, while critics warn it could make it difficult for startups and mid-sized firms to recruit international talent, particularly for entry-level technical positions.

Public comments on the proposal will be accepted until May 26, after which federal authorities will review feedback before finalising the regulation.

This is not the first attempt to tighten wage rules under the H-1B programme. Similar measures introduced during Donald Trump’s earlier term faced legal challenges and were later withdrawn. More recently, the administration also imposed a $100,000 fee on certain H-1B applicants located outside the US, signaling a broader effort to overhaul foreign worker policies.

By Rajeev Sharma

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