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US Plans Sharp H-1B Wage Hike, New Proposal Could Raise Hiring Costs for Foreign Workers

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Washington: The United States administration has proposed a major increase in minimum salary requirements for companies hiring foreign professionals under the H-1B visa programme, with wage levels set to rise by nearly 30 per cent under the new draft framework.

The proposal, introduced by the US Department of Labor, aims to revise salary benchmarks for foreign workers across multiple skill levels, arguing that existing wage standards have remained outdated for nearly two decades and no longer reflect present-day labour market realities.

Under the proposed revision, annual pay thresholds for entry-level H-1B workers could jump significantly, while salaries for more experienced categories would also see notable increases. Officials say the move is designed to ensure overseas professionals are not hired at rates lower than similarly qualified American employees.

As per the suggested changes, fresh applicants at the lowest wage tier may need to be offered nearly $98,000 annually, while upper-level skilled workers could command packages exceeding $175,000 depending on job classification and location. Actual salary figures would continue to vary by city and occupation.

The draft rule also applies to related foreign employment categories including H-1B1, E-3, and PERM labour certification programmes.

The administration has opened the proposal for public feedback until May 26, after which all responses will be reviewed before any final notification is issued.

The suggested hike has triggered mixed reactions across industries. Supporters believe it will strengthen wage protections for domestic workers and curb misuse of visa programmes. Critics, however, warn that the steep increase could make it difficult for smaller firms and startups to recruit international talent, particularly for junior-level positions.

This is not the first attempt to revise H-1B wage rules. Similar changes introduced during Donald Trump’s earlier term were eventually withdrawn after legal objections. Last year, the administration also imposed a substantial processing fee on H-1B applicants residing outside the US, signalling tighter scrutiny of foreign hiring practices.

If implemented, the latest wage revision could significantly reshape hiring strategies for US employers and affect thousands of skilled foreign workers seeking opportunities in America.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

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