The United States is reviewing the minimum salaries that employers must pay international workers under several of its most widely used work visa programmes. The Department of Labor (DOL) has submitted a revised set of proposals to the Office of Management and Budget that could significantly alter wage requirements for the H-1B, H-1B1, E-3, and PERM immigration programmes.
The proposal remains confidential at this stage, but early indications suggest that higher minimum wage requirements could be introduced. If enacted, the changes would affect a large number of international professionals currently working in — or planning to work in — the United States.
What Is Being Proposed
The proposal centres on the prevailing wage system — the framework that determines the minimum salary an employer must offer an international worker based on the job position, skill level, and geographic location. The US currently uses a four-level wage structure, and the new proposal could increase the minimum income required at each level, making it more expensive for employers to sponsor international workers.
Higher wage floors at the entry level in particular could reduce the number of lower-paid positions available under H-1B and similar visa categories.
Previous Attempts to Raise H-1B Wage Requirements
This is not the first time such a change has been proposed. In 2021, under the Trump administration, the Department of Labor introduced a rule intended to substantially increase minimum wages for international workers. The proposed changes to each wage level were as follows:
| Wage Level | Previous Percentile | Proposed Percentile | Increase |
|---|---|---|---|
| Level 1 — Entry Level | 17th percentile | 35th percentile | +18 points |
| Level 2 — Qualified | 34th percentile | 53rd percentile | +19 points |
| Level 3 — Experienced | 50th percentile | 72nd percentile | +22 points |
| Level 4 — Fully Competent | 67th percentile | 90th percentile | +23 points |
That rule faced legal challenges and was subsequently withdrawn following a change in administration. The Biden administration later considered its own wage reform proposal, but the plan was delayed and ultimately removed from its regulatory agenda. The current DOL proposal marks another attempt to revisit this issue.
Which Visa Programmes Would Be Affected
H-1B Visa
The H-1B is the most widely used work visa in the United States, permitting employers to hire international professionals in speciality occupations including IT, healthcare, engineering, research, and finance — roles that require advanced qualifications or technical expertise.
H-1B1 Visa
The H-1B1 is a speciality variant of the H-1B available exclusively to nationals of Chile and Singapore. It allows qualified professionals to work in technical roles requiring both theoretical knowledge and practical expertise.
E-3 Visa
The E-3 visa is designed specifically for Australian nationals seeking employment in the United States in speciality occupations that require professional experience, educational qualifications, or specialised industry knowledge.
PERM Labour Certification
PERM is a critical step in the employer-sponsored green card process. It requires US employers to demonstrate that no qualified and willing American worker is available for the role before sponsoring a foreign national for permanent residency.
What This Means for International Workers and Employers
Higher prevailing wage requirements generally mean that employers must offer more competitive salary packages to hire international talent. While this can benefit experienced professionals — who would receive higher minimum compensation — it may reduce opportunities for entry-level candidates and create challenges for smaller businesses with limited hiring budgets.
For international workers planning H-1B applications or employer-sponsored green cards, prevailing wage levels are a key factor in determining eligibility and the strength of an employer’s petition. Any upward revision to these thresholds will directly affect which roles qualify and which employers can afford to sponsor.
When Will a Final Decision Be Made?
The proposal is currently under national review. Full details will only become public when the rule is formally published in the Federal Register. At that point, the public — including employers, workers, and immigration advocacy groups — will have an opportunity to submit comments before any final decision is reached.
Until then, employers and international professionals are monitoring the situation closely, as any significant wage increase could reshape hiring patterns across the US technology, healthcare, and engineering sectors.
Conclusion
The proposed changes to H-1B and related visa wage requirements represent a potentially significant shift in the economics of international hiring in the United States. Whether the final rule mirrors the scale of earlier proposals or takes a more moderate approach remains to be seen. International professionals currently in or planning to enter the US workforce through employer sponsorship should monitor Federal Register updates carefully, and employers with active or planned sponsorships should begin reviewing their compensation structures in anticipation of potential new requirements.