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The United States is a step closer to revising wage norms linked to H-1B visas and employment-based Green Cards — a development that could reshape prospects for thousands of Indian professionals. A draft regulation from the United States Department of Labor has cleared review at the Office of Management and Budget, the final administrative checkpoint before it is released for public feedback.

Although the proposed language has not yet been made public, immigration experts anticipate tighter prevailing wage standards that may raise the financial bar for employers sponsoring foreign workers.

Why Prevailing Wage Benchmarks Are Crucial

Prevailing wages determine the minimum salary U.S. companies must offer foreign professionals based on role and geographic location. Any recalibration in how these wages are computed could increase compensation thresholds across industries.

Higher wage floors would directly affect H-1B filings and the PERM labor certification process — a mandatory step in most employment-based Green Card applications. Employers may be required to budget significantly more for sponsorship, potentially influencing hiring strategies and workforce planning, reported Times Now.

The numbers underscore the potential scale of impact. In fiscal year 2024, Indian nationals accounted for roughly 71% of all approved H-1B petitions — around 280,000 approvals — according to government data. Chinese applicants followed far behind at approximately 12%.

Proposal Still In Regulatory Pipeline

The measure has not yet become law. Once formally published, it will enter a public comment phase, allowing businesses, advocacy groups, and individuals to submit feedback. Only after reviewing those submissions can the Department of Labor finalize or revise the regulation, reported Financial Express.

Until then, uncertainty remains. Companies and applicants alike are closely monitoring developments to assess potential compliance costs and long-term implications.

Ripple Effects For Indian Talent

Indian professionals, who form the backbone of the H-1B program, may feel the impact most acutely. Employers have already grown cautious amid evolving visa policies and mounting compliance expenses. A separate proposal seeking to impose a $100,000 fee on select H-1B beneficiaries remains entangled in court proceedings, further complicating planning for companies.

Green Card aspirants are equally attentive. Adjustments to prevailing wage formulas would directly influence PERM applications, particularly in EB-2 and EB-3 categories. In high-cost metropolitan areas, elevated salary requirements could make sponsorship considerably more expensive.

Processing timelines add another layer of challenge. Expanded scrutiny in visa processing, including increased social-media vetting at U.S. consulates in India, has slowed adjudications. At the same time, highly skilled applicants continue exploring faster alternatives such as EB-1A petitions.