The United States government has proposed a significant increase in the minimum wages that employers must pay when hiring foreign workers under the H-1B visa program. The administration says this change is a long-overdue step to protect American workers.
The proposal was introduced by the US Department of Labor on March 27 and is currently open for public comments until May 26. However, this move could significantly affect hiring in the US tech industry.
What exactly is being proposed?
The new rule seeks to raise minimum wages across four categories of foreign workers from entry-level to the most experienced by around 30 per cent over previously fixed limits, according to Outlook Business.
Under the current system, the prevailing wages stand at USD 73,279 per year for entry-level workers, USD 98,987 for Level II, USD 1,21,979 for Level III, and USD 1,44,202 for Level IV.
According to proposed rule ‘Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,’ new wages would push these figures significantly higher. Entry-level salaries would rise to USD 97,746, a jump of 33.39 per cent. Level II wages would go up to USD 1,23,212, a rise of 24.47 per cent. Level III would increase to USD 1,47,333, up 20.79 per cent, and Level IV would climb to USD 1,75,464, an increase of 21.68 per cent. However, it is worth noting that prevailing wages differ from city to city.
These changes would apply to the H-1B, H-1B1, E-3 and PERM labor certification programs.
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The administration’s core argument is that the existing wage levels were set 20 years ago and have not been revised since, allowing employers to legally pay foreign workers significantly less than their American counterparts in equivalent roles, as per Outlook.
Debate over wage rule and what happens next
The proposal has received a divided response. According to Business Today , supporters see it as a necessary correction to wage floors that have been frozen for two decades. However, critics warn that smaller companies may no longer be able to afford foreign hires for entry-level positions if the higher wage thresholds come into effect.
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This is not the first time such a change has been proposed. According to Outlook Business, during his first term, the Trump administration tried to change prevailing wages in 2020 without giving prior notice or asking for public comments. However, the move faced legal challenges and had to be withdrawn. This time, the administration is following the formal public comment process.
Additionally, last year the administration had already imposed a USD 1,00,000 fee for H-1B candidates outside the US through a presidential order issued on September 19, 2025. That same order had directed the Secretary of Labor to initiate the rulemaking process to revise prevailing wage levels
Once the public comment window closes on May 26, the Department of Labor will review the responses before announcing a final rule.
