U.S. May Raise Minimum Pay for Foreign Workers Under H-1B Visa Program

The United States is once again reviewing the minimum salary employers must pay foreign workers under key visa programs. The Department of Labor (DOL) has sent a revised proposal to the Office of Management and Budget that could change wage rules for:

• H-1B Visa
• H-1B1 Visa
• E-3 Visa
• PERM Immigration Programs

It is important to note that the proposal is still confidential, but early signals suggest higher minimum salary requirements could be introduced. If implemented, the move may affect thousands of foreign professionals planning to work in the United States.

What Is Changing in the H-1B Wage System?

The proposal focuses on the “prevailing wage” system. This system decides the minimum salary an employer must offer a foreign worker based on job role, experience level, and location.

The U.S. currently uses a four-level wage structure. The new proposal could increase the minimum salary required at each level, making it more expensive for employers to sponsor foreign workers.

Higher salary requirements may reduce the number of lower-paid entry-level roles available under H-1B and similar visas.

Previous Attempts to Increase H-1B Salary Requirements

This is not the first time such a change has been considered.

In 2021, during the Trump administration, the Department of Labour introduced a rule aimed at significantly raising minimum wages for foreign workers. The plan adjusted wage levels as follows:

Wage Level	Previous Percentile	Proposed Percentile	Increase
Level 1 (Entry-level)	17th percentile	35th percentile	+18 points
Level 2 (Qualified)	34th percentile	53rd percentile	+19 points
Level 3 (Experienced)	50th percentile	72nd percentile	+22 points
Level 4 (Highly experienced)	67th percentile	90th percentile	+23 points

The rule faced legal challenges and was later withdrawn after a change in administration.

The Biden administration had also planned to introduce its own wage revision proposal, but the idea was delayed and eventually removed from its regulatory agenda.

Which Visa Programs Could Be Affected?

If approved, the new rule could impact several popular work visa routes:

H-1B Visa

The H-1B visa allows U.S. employers to hire foreign professionals in speciality occupations such as IT, engineering, healthcare, finance, and research roles that require advanced qualifications or technical expertise.

H-1B1 Visa

The H-1B1 visa is a specialised version of the H-1B available only to citizens of Chile and Singapore, allowing professionals to work in speciality occupations requiring theoretical and practical knowledge

E-3 Visa

The E-3 visa is designed specifically for Australian citizens seeking employment in the US in speciality occupations that require professional skills, academic qualifications, or specialised industry knowledge.

PERM Labor Certification

PERM Labor Certification is a key step for employer-sponsored green cards, requiring U.S. employers to prove that no qualified or willing U.S. worker is available for the position offered.

What This Means for Foreign Workers and Employers

Higher prevailing wages usually mean employers must offer stronger salary packages to hire foreign talent. While this can benefit skilled professionals, it may also reduce opportunities for entry-level applicants or smaller companies with limited budgets.

For international workers, especially those planning to apply for H-1B or employer-sponsored green cards, salary thresholds play a key role in eligibility.

When Will the Final Rule Be Announced?

The proposal is currently under federal review. Full details will only become public once the rule is officially published in the Federal Register.

At that stage, the public will have an opportunity to share feedback before any final decision is made.

Until then, employers and foreign professionals are closely watching the development, as any wage increase could reshape hiring trends in the U.S. job market.