The United States Department of Labor has proposed a significant increase to the minimum wage levels required for international workers employed through the H-1B visa programme. If the proposal is adopted, it would raise minimum salary thresholds by approximately 30% across all skill levels — with the largest impact falling on entry-level roles.
The proposal is currently open for public comment until 26th May 2026. It has not yet become policy.
What the Proposed Changes Involve
The Department of Labor’s proposal would update the prevailing wage system, which it describes as outdated — based on data from nearly 20 years ago that no longer reflects current US labour market conditions. The proposed minimum wage for Level 1 (entry-level) H-1B workers would increase to approximately $97,746 — a rise of roughly 33% from current rates.
The updated wage requirements would apply across several employment-based visa categories:
- H-1B Visas
- H-1B1 Visas
- E-3 Visas
- PERM labour certification applications
Why the US Is Proposing Higher H-1B Wages
The Department of Labor’s position is that some employers have used the existing wage framework to hire international workers at rates below those paid to comparable US employees — effectively using the H-1B programme to access cheaper labour rather than to fill genuine skills gaps. The proposed increases are intended to:
- Align international worker wages more closely with current US market rates
- Reduce the financial incentive for employers to substitute American workers with lower-paid international hires
- Update a prevailing wage system that has not meaningfully changed in decades
Who Would Be Most Affected
The proposed changes would hit entry-level and early-career international workers hardest. Categories most likely to be impacted include:
- International students who have recently graduated from US universities
- Early-career IT and engineering professionals
- Small technology companies that rely on H-1B hiring for junior roles
- Consulting firms that place H-1B workers across client organisations
If entry-level minimum wages increase substantially, some employers — particularly smaller firms and startups — may reconsider sponsoring H-1B workers for junior positions due to cost constraints.
Divided Responses From Business and Immigration Professionals
The proposal has drawn strong reactions from across the business and immigration communities.
Supporters argue that the increases are long overdue — wages under the current system have failed to keep pace with inflation and actual market salaries, and reform would improve the quality and fairness of H-1B employment.
Critics contend that the scale of the proposed increases could create serious difficulties for businesses already facing labour shortages and rising operational costs. Many employers fear they will no longer be able to afford sponsoring international workers for lower and mid-level roles, potentially reducing overall access to global talent.
Public Comment Period Open Until 26th May 2026
Employers, employee advocacy groups, immigration attorneys, and industry associations can submit formal feedback on the proposed rule until 26th May 2026. After reviewing public comments, the Department of Labor will determine whether to finalise, revise, or defer the proposed wage changes.
Conclusion
The proposed H-1B wage increase represents one of the most significant potential reforms to the US immigration-linked employment framework in years. A 33% rise in entry-level minimums to $97,746 would fundamentally change the cost calculus for employers considering H-1B sponsorship — particularly for smaller companies and those hiring early-career international talent. The proposal is not yet law, but employers, HR teams, and international workers planning US-based careers should monitor developments closely as the public comment period closes on 26th May 2026.