US Proposes Significant Wage Hike for H1B Visa Workers: What You Need to Know

Proposed Wage Increases for H1B Visa Holders

In a recent announcement, the US government has suggested a 30% increase in the minimum wages for employees under the H1B visa program. This initiative, put forth by the Department of Labor on March 27, aims to prevent foreign workers from underbidding American salaries.

The proposed regulation, titled 'Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,' seeks to adjust the minimum wages across four categories, from entry-level to highly experienced positions. The current wage levels, established two decades ago, are deemed insufficient for safeguarding US workers.

Under the new proposal, the prevailing wage for entry-level foreign workers would rise to USD 97,746 annually, reflecting a 33.39% increase from the previous rate of USD 73,279. Other proposed wage levels include USD 123,212 for Level II (up 24.47%), USD 147,333 for Level III (up 20.79%), and USD 175,464 for Level IV (up 21.68%). It's important to note that these wage rates vary by location.

The Department of Labor has indicated that the existing wage calculation method permits employers to recruit foreign workers at significantly lower wages than those offered to comparable US employees.

These proposed changes would substantially elevate the wage standards for H1B, H1B1, E-3, and PERM labor certification programs.

Responses to the proposed regulations have been mixed, with some expressing strong support while others raise concerns that smaller businesses may struggle to hire entry-level candidates due to the increased wage requirements.

The public comment period for this proposal will remain open until May 26, after which the Department of Labor will review the feedback and finalize the regulations.

Previously, the Trump administration attempted to modify prevailing wages in 2020 without public input, a move that faced legal challenges and was ultimately halted.

Additionally, last year, a presidential order imposed a USD 100,000 fee on H-1B applicants from outside the US, which also mandated the Secretary of Labor to revise the prevailing wage levels for the H-1B program.