US Proposes 33% H-1B Entry-Level Salary Hike to Nearly $98,000

The United States has proposed a major increase in the minimum salaries employers must pay foreign workers hired through the H-1B visa programme, with entry-level pay set to rise to $97,746 under the draft rules.

The proposal, issued by the Department of Labour, would raise prevailing wage requirements across four employment levels. The minimum salary for entry-level positions would increase by 33 per cent from the current threshold. 

Officials say the existing wage system, introduced 20 years ago, no longer reflects current labour market conditions and does not provide sufficient protection for American workers. The proposed changes would also apply to the H-1B1, E-3 and PERM labour certification programmes, extending the impact beyond the H-1B visa system. 

According to the department, the current wage methodology allows some employers to hire foreign workers at salaries below those paid to similarly qualified American employees. The revised wage levels are intended to address those differences and strengthen labour market protections.

The proposal has received mixed reactions. Supporters, including labour groups, say higher wage requirements would reduce misuse of employment visa programmes and help prevent downward pressure on wages for US workers. 

Critics argue that the increases could make it more difficult for smaller businesses to recruit international graduates and early-career professionals, potentially limiting access to skilled talent. The draft rule is open for public comment until 26 May. After reviewing submissions, the Department of Labour will decide whether to adopt the proposal and publish a final rule.