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The United States is planning a major increase in the minimum salary companies must pay foreign workers hired through the H-1B visa program. If approved, the move could make it harder for employers to hire overseas talent at lower wages, especially for entry-level jobs.

The proposal comes from the US Department of Labor, which says the current wage system is outdated and no longer reflects today’s job market.

What Is Changing in the H-1B Visa Program?

Under the proposed rule, the US wants to raise the minimum wage levels for foreign workers by around 30 per cent across different experience categories.

The biggest increase is expected for entry-level positions. According to the proposal, the minimum prevailing wage for Level 1 workers could rise to: 97,746 USD

That is roughly a 33 per cent jump compared to the current rates.

The new wage rules would apply to several employment-based visa programs, including:

• H-1B visas
• H-1B1 visas
• E-3 visas
• PERM labor certification applications

Why the US Wants Higher H-1B Salaries

The Department of Labor argues that many companies currently hire foreign workers at salaries lower than what similar American workers receive. Officials say the wage system used today was created nearly 20 years ago and no longer protects local workers properly.

The administration believes higher salary requirements could stop companies from using cheaper foreign labor to reduce hiring costs. In simple terms, the government wants employers to pay foreign workers salaries closer to current US market standards.

Entry-Level Jobs Could Be Hit the Hardest

One of the biggest concerns is how the rule may affect fresh graduates and early-career workers.

Smaller companies and startups often hire entry-level H-1B employees because salary costs are lower. If the minimum wage rises sharply, many employers may rethink hiring junior foreign workers altogether.

Immigration experts say this could especially impact:

• International students graduating from US universities
• Fresh IT and engineering professionals
• Smaller tech companies
• Consulting firms that depend on H-1B hiring

At the same time, supporters of the rule argue that higher wages could improve job quality and reduce misuse of the visa system.

Mixed Reactions From Employers and Immigration Groups

The proposal has already triggered strong reactions across the business and immigration sectors.

Supporters say the changes are necessary because wages have not kept pace with inflation and market salaries.

Critics, however, warn that the sharp increase may create problems for businesses already struggling with labor shortages and rising costs.

Some companies fear they may no longer be able to afford to sponsor foreign workers for lower-level positions.

Public Comments Open Until May 26

The proposed rule is currently open for public feedback. Employers, immigration lawyers, worker groups, and industry associations can submit comments until May 26.

After reviewing the responses, the Department of Labor will decide whether to finalise, revise, or delay the new wage rules.

For now, the proposal has not become law. But if approved, it could significantly reshape the future of the H-1B visa program and hiring trends for foreign workers in the US.