- The U.S. government is reviewing a proposal to raise minimum wages for foreign workers across major visa programmes
- The plan targets key visa categories including H-1B, H-1B1, E-3, and PERM labour certification
- The proposal focuses on increasing the “prevailing wage” thresholds across the current four-tier wage system
The United States government is considering a proposal that could significantly raise the minimum wages employers must pay foreign workers under key visa programmes, a move that may reshape hiring dynamics for international talent.
The proposal, submitted by the U.S. Department of Labor to the Office of Management and Budget, is currently under review and has not yet been made public.
Early indications suggest that the plan seeks to increase prevailing wage levels across several visa categories, including H-1B, H-1B1, E-3, and PERM labour certification programmes.
At the heart of the proposal is the “prevailing wage” system, which determines the minimum salary employers must pay foreign workers based on job role, experience level, and geographic location.
The existing framework operates on a four-tier wage structure, and any upward adjustment would raise salary thresholds across all levels.
If implemented, the changes could substantially increase the cost of hiring foreign workers, particularly for entry-level roles.
Reports indicate that higher wage requirements may reduce the number of lower-paid positions available under the H-1B visa programme, potentially limiting opportunities for early-career professionals.
This is not the first attempt to revise wage thresholds. In 2021, the administration of Donald Trump introduced a rule that significantly raised wage percentiles across all four levels, with entry-level wages increasing from the 17th to the 35th percentile and top-tier wages from the 67th to the 90th percentile.
That rule, however, faced legal challenges and was later withdrawn.
Subsequent efforts under Joe Biden to introduce a revised wage framework were delayed and eventually removed from the regulatory agenda, leaving the current system unchanged until now.
The proposed changes are expected to impact several widely used work visa pathways.
The H-1B visa, one of the most sought-after programmes, allows U.S. companies to hire foreign professionals in specialised fields such as technology, engineering, healthcare, and finance.
Other visa categories that may be affected include the H-1B1 visa for citizens of Chile and Singapore, and the E-3 visa, which is reserved for Australian nationals in similar professional roles.
The PERM labour certification process, a crucial step in employer-sponsored green cards, could also see adjustments.
For employers, higher prevailing wages typically translate to increased labour costs, which could discourage smaller firms from sponsoring foreign workers.
For skilled professionals, however, the changes may result in better compensation packages, even as competition for fewer roles intensifies.
The proposal remains under federal review, and full details are expected once it is published in the Federal Register.
At that stage, stakeholders will be able to submit public comments before a final rule is adopted.