US Proposes Sharp Rise in H-1B Minimum Wages

The United States government has proposed a significant increase to the minimum salaries employers must pay foreign workers under the H-1B visa programme, including a more than 33 percent rise for entry-level positions.

The proposal from the Department of Labour would raise prevailing wage levels across four employment categories, from entry-level to highly experienced roles. Under the draft rule, the minimum salary for entry-level workers would increase to $97,746 a year. Officials said the current wage levels were introduced around 20 years ago and no longer reflect today's labour market.

The proposed changes would apply to the H-1B programme, as well as the H-1B1 and E-3 visa categories and the PERM labour certification system. The Department of Labour said the existing wage calculation allows some employers to hire foreign workers at salaries below those paid to similarly qualified US workers, putting downward pressure on wages.

The proposal has received mixed responses. Supporters say higher minimum salaries would help prevent employers from using foreign workers to reduce labour costs and would better protect wages for US employees. Critics argue that the higher requirements could make it more difficult for smaller businesses to hire foreign workers, particularly recent graduates seeking entry-level jobs.

The draft rule is open for public comment until 26 May. After the consultation period closes, the Department of Labour will review the submissions before deciding whether to issue a final regulation.