The United States is moving toward a major overhaul of its H-1B visa programme, with a proposal aimed at significantly increasing the cost of hiring foreign workers. The move is being positioned by policymakers as a long-overdue step to protect American workers and address wage disparities.
According to the proposed rule, minimum wage requirements across the H-1B system could rise by nearly 30% compared to existing benchmarks. Officials argue that prevailing wage levels have not been updated in almost two decades, allowing companies to hire foreign professionals at salaries lower than those paid to similarly qualified US workers.
The revised structure targets all four wage tiers, from entry-level to highly experienced professionals. For entry-level positions, the proposed prevailing wage could rise to approximately $97,746, marking an increase of over 33% from current levels. Since prevailing wages vary by location, actual figures would differ based on the job market in each city.
If implemented, the changes would impact multiple visa and labour categories, including H-1B, H-1B1, E-3, and PERM labour certification programmes. The Department of Labour notes that the current system has created significant wage gaps, enabling employers to legally pay foreign workers substantially less than their American counterparts in equivalent roles.
The proposal has sparked mixed reactions. Supporters say it corrects long-standing wage imbalances and ensures fair competition in the labour market. However, critics warn that the higher wage thresholds could make it difficult for smaller companies and startups to hire foreign talent, particularly for entry-level roles.
The rule is currently open for public comments until May 26. After the consultation period ends, the Department of Labour will review feedback before issuing the final version of the regulation.
For Indian IT professionals, who form a large portion of H-1B visa holders, the outcome could have a significant impact on hiring trends, salary structures, and future opportunities in the United States technology sector.
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