The United States Department of Labor has proposed a major revision to wage rules under the H-1B visa program. The plan aims to increase prevailing wages paid to foreign workers by approximately 20% to 33% across different skill levels. The stated goal is to prevent employers from hiring foreign workers at significantly lower salaries than US workers in similar roles.

Details of the Proposal

The rule change applies to multiple visa and labor certification programs, including H-1B, H-1B1, E-3, and Permanent Labor Certification. 

Under the proposed wage structure:

• Level I (entry-level workers): Proposed wage is $97,746 per year, up from about $73,279, marking an increase of 33.39%.
• Level II (qualified workers): Proposed wage is $123,212, compared to $98,987, an increase of 24.47%.
• Level III (experienced workers): Proposed wage is $147,333, up from $121,979, a rise of 20.79%.
• Level IV (fully experienced/senior roles): Proposed wage is $175,464, compared to $144,202, an increase of 21.68%.

The Department of Labor has stated that current wage benchmarks are based on a system that has not been significantly updated in around 20 years.

Reason Behind the Change 

Officials argue that the existing system allows employers in the US to hire foreign workers at wages lower than those paid to similarly skilled US employees. The proposed revision is intended to correct this imbalance and strengthen wage protections for domestic workers.

The rule is titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.”

Also Read: H1B Visa Wage-Based New Rule

Public Response and Concerns

The proposal has triggered mixed reactions across industries. Supporters say it could help prevent wage suppression and ensure fair competition in the labor market.

However, critics warn that the higher wage thresholds may make it difficult for smaller companies and startups to hire entry-level foreign workers. They also argue that it could reduce hiring flexibility in sectors that depend heavily on fresh graduates.

The public comment period is open until May 26. After the Department reviews the feedback, it will decide whether to finalize or modify the rule. 

This proposal follows earlier immigration-related changes, including a $100,000 fee introduced in September 2025 for certain H-1B applicants applying from outside the US. That policy was introduced through a presidential order and was part of broader efforts to tighten skilled immigration rules.

A previous attempt to revise wage levels during an earlier administration faced legal challenges and was ultimately not implemented.

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For many Indian professionals, especially those in the IT sector, the H-1B visa has long been a key pathway to working in the United States. Recently, a new U.S. H-1B visa bill has brought attention to potential changes in this system. While it is still under consideration and not law, it’s important to understand what has been proposed and what it could mean.

Proposed Changes

A recently introduced bill suggests several significant modifications to the current system. These are proposals and have not yet been enacted.

Temporary Pause on New Visas: The proposal includes a proposed three-year suspension on issuing new H-1B visas. If implemented, this would temporarily halt new entries under this category.

Reduction in Annual Visa Cap: The current cap of 65,000 visas may be reduced to 25,000 per year, which would make the process more competitive.

Higher Minimum Salary Requirement: A minimum salary threshold of $200,000 per year (approximately Rs 1.6–1.7 crore) has been proposed under the bill. This aims to ensure that only highly skilled professionals are hired under the program.

Restrictions on Family Members: The proposal suggests limiting the ability of visa holders to bring dependents (spouse and children) to the United States under certain conditions. 

Changes to Permanent Residency Pathways: Currently, many H-1B holders transition to permanent residency through a Green Card. The proposal includes provisions that could remove or restrict this pathway.

Also Read: New H-1B and F-1 Visa Slots Open in India

Potential End of OPT Program: The Optional Practical Training (OPT) allows international students to work in the U.S. after completing their studies. The proposal includes a suggestion to discontinue this program. 

FAQs 

Is the new H-1B visa proposal already in effect?

No. It is currently a proposed bill, not a law yet. It must pass multiple stages in the U.S. legislative process before any changes take effect.

Will current visa holders be affected immediately?

In most cases, existing visa holders are not impacted right away by new proposals if they are passed. Changes, if passed, are usually applied to new applicants or future renewals, not retroactively.

What happens if a visa freeze is introduced? 

If a visa freeze happens, new visas won’t be issued, current workers can usually continue, and companies may hire more abroad or use remote jobs instead. 

How would a higher salary threshold affect applicants? 

A higher threshold (for example, $200,000) would likely cut out many entry- and mid-level applicants, limiting eligibility mainly to senior or highly specialized roles like AI and cybersecurity professionals. 

Can companies still hire international talent without a visa?
Yes. Companies can still hire international talent using options like L-1 transfers, O-1 visas for highly skilled individuals, or by hiring them remotely from outside the U.S.  

What happens to students if Optional Practical Training (OPT) is removed? 

If OPT is removed, international students may lose post-graduation work opportunities, making U.S. education less attractive, and many may choose countries with clearer work pathways after study instead.

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