United States moves closer to stricter H-1B wage rules after federal review clears proposal, signalling higher salary thresholds, potential hiring shifts, and major implications for foreign workers and employers worldwide
The United States has taken a big step toward tightening wage norms for foreign workers, after a proposal affecting the H-1B visa and employment-based green card process cleared federal review.
The draft rule, now reviewed by the Office of Management and Budget, is expected to be released soon for public comment, bringing potential changes that could reshape hiring costs and salary thresholds for foreign professionals.
At the heart of the proposal is the concept of “prevailing wages,” which determine the minimum salary employers must pay foreign workers based on their role and location. Any revision to this system could directly impact hiring decisions, sponsorship eligibility, and labour costs. Immigration experts say the new framework may revise how wage levels are calculated and could raise minimum salary benchmarks across several sectors.
Why wage rules matter for H-1B workers
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H-1B visa is widely used by US employers to hire skilled foreign professionals, especially in technology and healthcare.
Indian nationals are the biggest beneficiaries of the programme. According to US Citizenship and Immigration Services data, Indians accounted for 71% of all H-1B approvals in fiscal 2024, roughly 2.8 lakh beneficiaries.
This means any increase in wage requirements could significantly affect Indian professionals and the companies that hire them. Higher salary thresholds may make sponsorship more expensive, potentially reducing opportunities or prompting employers to reconsider recruitment strategies.
The proposal’s timing is also critical, as H-1B registrations for the upcoming visa season are set to open soon. Experts believe that if the rule is finalised quickly, it could apply to candidates selected in the 2027 visa cycle. The public comment period will likely last between 30 and 60 days, although officials may shorten it to speed up implementation.
Echoes of earlier attempts, and what comes next
This isn’t the first time US authorities have tried to overhaul H-1B wage norms.
During Donald Trump’s earlier presidency, the Department of Labor introduced a rule in October 2020 that raised wages for H-1B and green card applicants by 40% to 100%. However, the measure was challenged in court and later withdrawn.
The Biden administration had also explored revising wage rules, but the effort was eventually put on hold. Now, with the proposal advancing through federal review, the US appears closer than ever to implementing tougher salary standards for foreign workers.
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