US Proposes To Hike H1-B Wages By 30%: What Changes For Indians

Last Updated:May 13, 2026, 16:11 IST

US proposes sharp H-1B wage hikes, raising entry level to $97,000, aims to protect American workers, business and tech sectors warn of higher costs and hiring challenges.

The United States government has proposed a sharp increase in the minimum salaries employers must pay foreign workers under the H-1B visa programme, a move the administration says is aimed at protecting American workers from wage suppression.

The proposal, introduced by the US Department of Labor on March 27, would significantly raise prevailing wage levels across multiple visa categories, including H-1B, H-1B1, E-3 and PERM labour certification programmes.

The rule is currently open for public comments until May 26, before a final decision is made.

What Changes Are Being Proposed?

Under the current system, minimum prevailing wages for H-1B workers are:

USD 73,279 for entry-level workersUSD 98,987 for Level IIUSD 1,21,979 for Level IIIUSD 1,44,202 for Level IV

The proposed changes would raise those salary floors substantially:

Entry-level wages would rise to USD 97,746 — a 33.39% increaseLevel II wages would increase to USD 1,23,212 — up 24.47%Level III wages would climb to USD 1,47,333 — up 20.79%Level IV wages would rise to USD 1,75,464 — a 21.68% increase

Officials noted that prevailing wages vary depending on the city and region.

Why The US Wants To Raise H-1B Wages

The administration argues that current wage benchmarks were set nearly two decades ago and no longer reflect modern market realities.

According to officials, outdated wage levels have allowed companies to legally pay foreign workers significantly less than similarly qualified American employees in equivalent roles.

The proposal has been framed as part of a broader effort to tighten labour protections and reduce wage undercutting in sectors heavily dependent on foreign talent, especially technology and engineering.

Divided Reaction From Industry

The proposal has sparked debate within the US business and tech sectors.

Supporters say the changes are necessary because prevailing wage standards have remained frozen for nearly 20 years.

Critics, however, warn that smaller companies and startups could struggle to afford foreign hires if salary thresholds rise sharply, especially for entry-level positions.

Industry groups have also cautioned that higher costs could impact hiring flexibility in the tech sector.

Not The First Attempt

This is not the first time the administration has attempted to revise H-1B wage rules.

During Donald Trump’s first term in 2020, the administration attempted to implement similar changes without a public consultation process, but the move faced legal challenges and was later withdrawn.

This time, the government is following the formal rulemaking process by seeking public feedback before implementing changes.

The latest proposal also follows a September 2025 presidential order that imposed a USD 100,000 fee for certain H-1B candidates applying from outside the US and directed the Labor Department to revise prevailing wage levels.

Once the public comment period closes on May 26, the Department of Labor will review feedback before issuing a final rule.

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