Home / Articles / U.S. Considers Increase in Minimum Wages for H-1B Foreign Workers

Articles

U.S. Considers Increase in Minimum Wages for H-1B Foreign Workers

March 28, 2026 7:40 am

U.S. Considers Increase in Minimum Wages for H-1B Foreign Workers

United States is now reviewing a proposal that could significantly impact foreign worker salaries. These potential changes may affect hiring decisions, eligibility, and career opportunities for many professionals. Therefore, understanding the proposal early is essential for both employers and applicants.

U.S. Reviews Higher Minimum Wages for Foreign Worker Visas

The U.S. Department of Labor has submitted a revised wage proposal for federal review. This proposal has been sent to the Office of Management and Budget for evaluation. If approved, the changes could increase minimum salary requirements across several visa categories. These include the H-1B, H-1B1, E-3, and PERM immigration programs.

Although details remain confidential, early indications suggest higher wage thresholds are likely.

Proposed Changes to the H-1B Wage System

The proposal focuses on adjusting the prevailing wage system used in the United States. This system determines minimum salaries based on job role, experience, and location. Currently, wages are divided into four levels, ranging from entry-level to highly experienced roles. The proposed changes could raise salary requirements across all levels.

As a result, employers may need to offer higher pay to successfully sponsor foreign workers.

Previous Attempts to Raise Wage Requirements

This is not the first time the United States has attempted wage reforms for foreign workers. In 2021, a rule introduced under Donald Trump proposed significant increases in wage percentiles. The plan aimed to raise entry-level wages from the 17th percentile to the 35th percentile. Similar increases were proposed for higher experience levels across the wage structure.

However, legal challenges prevented the rule from taking full effect. Later, the Joe Biden administration considered similar changes but did not implement them.

Visa Programs That Could Be Affected

If approved, the proposal will impact several major work visa pathways in the United States. The H-1B visa allows employers to hire skilled professionals in specialized fields. The H-1B1 visa applies specifically to citizens of Chile and Singapore. Meanwhile, the E-3 visa is designed exclusively for professionals from Australia.

The PERM Labor Certification program is also affected, as it supports employer-sponsored green card applications.

Impact on Workers and Employers

Higher wage requirements could benefit experienced professionals by increasing earning potential and job quality. However, they may also reduce opportunities for entry-level applicants seeking initial roles. Employers, especially smaller companies, may face higher hiring costs under the new system. Consequently, some organizations may limit sponsorships for foreign workers.

Overall, the proposal could reshape hiring patterns across multiple industries.

When Will a Final Decision Be Made?

The proposal is currently under federal review in the United States. Full details will only become available once published in the Federal Register. At that stage, the public will have an opportunity to provide feedback before final approval. Until then, both employers and applicants will continue to monitor developments closely.

Final Thoughts

United States is exploring changes that could redefine opportunities for foreign professionals. While higher wages may improve earnings, they could also tighten access for some applicants. Staying informed and prepared will be essential as these potential reforms continue to evolve.