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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