US Moves to Raise H-1B Minimum Salaries by About 30% for Foreign Workers

The US government has proposed raising the minimum salaries required for foreign workers under the H-1B visa programme by about 30 per cent across four skill levels.

The proposed changes would significantly increase the wages employers must offer foreign workers, including those in entry-level positions. Under the new framework, the prevailing wage for entry-level roles would rise to $97,746, an increase of more than a third from current levels. Actual figures would vary by location.

The changes would also apply to related programmes, including H-1B1, E-3 and the PERM labour certification process. The Department of Labour said the existing wage benchmarks, which were established two decades ago, no longer reflect current economic conditions and may allow companies to employ foreign workers at salaries below those offered to similarly qualified US workers.

Officials said the proposed reform is intended to ensure greater parity between foreign and domestic workers. The revised wage calculations would aim to prevent employers from using the H-1B system to recruit overseas workers at lower salaries and would strengthen protections for US employees.

Businesses have raised concerns about the potential costs. Smaller companies, in particular, could find the higher wage requirements difficult to meet when hiring recent graduates or workers for entry-level positions. Higher salary floors could also reduce their ability to recruit specialised talent from abroad and affect competitiveness in industries that depend on international expertise.

The proposal is open for public consultation until 26 May. The Department of Labour will review the submissions before deciding whether to issue a final rule.

The outcome could affect employers, foreign workers and US employees, while influencing how companies recruit skilled workers from overseas. It also forms part of a wider debate over whether higher wage requirements can protect domestic employment without reducing access to international talent.

If adopted, the new standards could discourage employers from paying foreign workers less than comparable US employees and could support higher domestic wages. At the same time, they could make the US less accessible to some foreign professionals and increase recruitment costs for smaller businesses. 

The final rule will therefore have implications for both the US labour market and the country's ability to compete for skilled workers globally.