The US government is planning a major change that could directly affect thousands of Indian professionals and students working in America.
The US Department of Labor has proposed a new rule to increase the minimum salary requirement for H-1B and related visa holders by around 30%.
The proposal, called “Improving Wage Protections,” aims to stop companies from hiring foreign workers at lower salaries and protect jobs for American citizens.
If implemented, companies in the US will have to pay foreign workers much higher salaries than before.
Contents
Why Is the US Bringing This New Rule?
According to reports, the US government believes some companies are underpaying foreign workers compared to American employees.
To fix this issue, the Department of Labor wants to increase the “prevailing wage” — the minimum salary companies must offer to foreign workers on visas like H-1B.
The draft proposal was introduced on March 27 and is open for public comments until May 26.
This change could heavily impact hiring in the US technology sector, especially companies that depend on skilled foreign employees.
Salary Hike Details for H-1B Workers
Under the new proposal, salary requirements may rise sharply across all skill levels.
An entry-level employee who earlier needed a salary of around $73,000 per year may now need to be paid at least $97,000 annually.
Here is the proposed increase:
Entry Level/Freshers: From $73,279 to $97,746 (33.39% increase)
Junior/Mid-Level: From $98,987 to $123,212 (24.47% increase)
Experienced Professionals: From $121,979 to $147,333 (20.79% increase)
Top-Level Experts: From $144,202 to $175,464 (21.68% increase)
Big Challenge for IT Companies
If the rule becomes official, hiring foreign employees will become much more expensive for American companies.
Indian IT giants like Tata Consultancy Services, Infosys, and Wipro may face higher onsite employee costs in the US.
This could reduce profit margins for these companies. Some businesses may even transfer the extra cost to their clients.
Experts also believe many companies could start preferring American workers over foreign visa holders to avoid higher expenses.
Why This Could Be Difficult for Indians
The proposed rule may create problems for Indian students and fresh graduates looking for jobs in the US.
Smaller companies and startups may hesitate to hire entry-level foreign workers because of the higher salary requirement.
However, experienced professionals already working in the US may benefit from this move. Skilled workers renewing their visas could receive higher salaries under the updated rules.
Mixed Reactions to the Proposal
The proposal has received both support and criticism.
Supporters say the current wage system has not changed much in nearly 20 years and needs an update to ensure fair salaries.
Critics, however, warn that smaller companies may no longer afford to hire foreign talent, especially for beginner-level positions.
This is not the first time such a proposal has appeared. During Donald Trump’s first term in 2020, a similar attempt was made to change prevailing wage rates without public consultation. That move later faced legal challenges and was withdrawn.
This time, the US administration is following the official public comment process before making a final decision.