The US Department of Labour has proposed a sharp increase in the minimum wages for employees hired under the H1B visa and related programmes. The draft rule, announced on 27 March, aims to update wage levels that were set nearly 20 years ago. Officials reportedly say the change is meant to protect American workers by ensuring foreign employees are not hired at lower pay rates.
The proposal covers four skill levels, from entry level to highly experienced workers. Current wages range from about $73,000 at entry level to $144,000 at the top level. Under the new plan, entry level wages would rise to nearly $98,000, while the highest level would increase to over $175,000. The hikes range between 20 per cent and 33 per cent depending on the category. These rates also vary by city, reflecting local labour markets.
The rule would apply to H1B, H1B1, E , and PERM labour-certification programmes. Public comments are open until 26 May, after which the Department of Labour will review feedback before finalising the rule.
The proposal has drawn mixed reactions. Supporters believe it will strengthen wage protections for US workers. Critics argue that smaller companies may struggle to afford entry level foreign hires at the new rates, potentially limiting opportunities for fresh graduates.
This move follows earlier steps by the administration, including a $100,000 fee for H 1B candidates outside the US introduced in September 2025. Together, these measures signal a tougher stance on foreign worker hiring costs.