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US considers 30 percent increase in H-1B wages: How it could affect employers and foreign workers

Published On Wed, 13 May 2026
Karan Sood
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The United States is reportedly evaluating a proposal that could increase wage requirements for H-1B visa holders by around 30%, a change that may significantly reshape how companies hire skilled foreign professionals, particularly in the technology and engineering sectors. The proposed adjustment would revise the existing “prevailing wage” system, which determines the minimum salary employers must pay H-1B workers based on job role, experience level, and location. Under the new framework being discussed, entry-level salaries could rise sharply from around $73,000 to nearly $97,000, while higher skill categories would also see proportional increases.

Officials behind the proposal argue that the current wage structure is outdated and needs to reflect modern labor market conditions. The aim is to ensure that companies do not use the H-1B program to underpay foreign workers compared to their American counterparts performing similar roles. The revision is also expected to strengthen wage parity and reduce concerns about labor cost advantages influencing hiring decisions.

For employers, particularly in the tech industry, the change could lead to a noticeable rise in hiring expenses. Companies that heavily depend on H-1B talent may need to reassess recruitment budgets and long-term workforce planning. Large multinational firms may adjust more easily, but startups and mid-sized companies could face pressure due to limited financial flexibility. Industry observers also suggest that firms may increasingly prioritize senior-level hiring or shift certain roles offshore to manage costs.

For foreign workers, the impact is likely to be mixed. While higher wage requirements could result in better salary packages for approved candidates, they may also reduce the number of entry-level sponsorship opportunities. Early-career professionals could find it more difficult to secure H-1B positions as employers become more selective in sponsoring visas that now require higher salary commitments.

Indian professionals, who represent the largest group of H-1B visa beneficiaries, are expected to be significantly affected by the change. Many entry-level IT graduates who traditionally entered the U.S. job market through sponsorship routes may face tighter competition, while experienced professionals with specialized skills could see stronger demand and improved compensation offers.

The proposal may also influence broader global hiring patterns, encouraging companies to expand remote teams and offshore development centers instead of increasing U.S.-based recruitment at higher wage levels. Although the plan is still under review, it reflects a broader shift in U.S. immigration policy toward higher wage thresholds and more selective skilled migration. Employers and foreign workers alike are closely watching the development, as it could reshape the structure of global tech hiring in the years ahead.

Disclaimer: This image is taken from Hindustan Times.