US Push to Raise H-1B Wages May Discourage Firms From Filing Visas

The United States has proposed a sharp increase in wage benchmarks for hiring foreign professionals under the H-1B visa programme , a move that could make the visa route significantly costlier for employers and reduce opportunities for Indian technology workers.

The proposal, issued by the US Department of Labor , seeks to revise the prevailing wage methodology used for H-1B, H-1B1, E-3 and PERM programmes. The stated aim is to ensure that foreign professionals are not hired at wages lower than similarly placed American workers. But the practical impact could be wider: if the minimum wage expectations rise sharply, many employers, especially smaller firms and startups, may think twice before filing H-1B petitions.

Under the proposed rule, the average Level I wage benchmark cited by the Department would rise by 33.39 per cent , from USD 73,279 to USD 97,746 . However, this is not a single nationwide salary floor. Actual H-1B wage requirements would continue to vary by occupation, work location and skill level . The average Level II benchmark would rise by 24.47 per cent to USD 123,212 , while Level III and Level IV benchmarks would increase by 20.79 per cent and 21.68 per cent to USD 147,333 and USD 175,464 , respectively.

The government also plans to move wage calculations higher in the pay distribution, including raising entry-level jobs from the 17th percentile to the 34th percentile and top-level roles from the 67th percentile to the 88th percentile . This could push some Silicon Valley software roles to much higher salary thresholds.

For Indian professionals, who form the largest group of H-1B beneficiaries, the proposal creates a mixed picture. Those who qualify may receive better wages, but fewer employers may be willing to sponsor visas if the cost becomes too high.

The rule is still at the proposal stage. Public comments close on May 26, 2026 , after which the Department will issue a final rule with an effective date. A fast-track rollout later in 2026 is possible, but a broader practical impact in 2027 appears more likely, especially if the rule faces legal or industry challenges.