In a major move that could reshape global tech hiring, the United States has proposed a sharp increase in minimum salary requirements under the H-1B visa programme.
The proposal, introduced by the US Department of Labor, aims to stop companies from hiring foreign workers at salaries lower than American employees doing similar jobs.
If approved, the new rules could significantly increase hiring costs for companies that depend heavily on skilled foreign workers, especially Indian IT firms.
H-1B Salary Limits Could Rise by Nearly 30%
Under the proposed changes, salary thresholds across multiple foreign worker visa categories would increase sharply.
The biggest increase is expected for entry-level employees.
Proposed H-1B Salary Changes
Current minimum salary: $73,279
Proposed minimum salary: $97,746
Increase: 33.39%
Other salary levels may also rise:
Level II: $123,212
Level III: $147,333
Level IV: $175,464
The actual salary requirement would vary depending on the city and local wage levels.
For example:
San Francisco could require nearly $162,000 for entry-level software engineers
New York may see thresholds around $132,000
Dallas could require around $113,000
Why the US Government Wants This Change
According to the US Department of Labor, the current wage system is outdated and does not reflect today’s market conditions.
Officials believe some companies have been using lower wage categories to hire foreign workers more cheaply than American employees.
The new proposal is intended to:
Align H-1B salaries with actual US market wages
Reduce allegations of “cheap labour substitution”
Protect domestic workers from unfair salary competition
The proposed changes cover:
H-1B visas
H-1B1 visas
E-3 visa programmes
PERM labour certification system
Indian IT Companies Could Face Major Challenges
The H-1B programme is dominated by Indian professionals.
According to past USCIS data, Indians receive nearly 70% to 75% of all H-1B visa approvals every year.
This means Indian IT giants like Infosys, TCS, Wipro, and HCLTech could see a major rise in onsite employee costs in the US.
Smaller outsourcing firms and startups may face even bigger difficulties because sponsoring foreign workers would become far more expensive.
Experts believe some companies could increasingly prefer:
Remote hiring from India
Offshore project models
Smaller onsite teams in the US
instead of relocating large numbers of employees abroad.
What This Means for Indian Tech Professionals
If the proposal becomes law, Indian engineers, software developers, data scientists, and IT professionals may face a more competitive H-1B market.
While higher salaries could benefit workers who secure jobs, companies may become more selective when sponsoring visas due to rising costs.
Freshers and entry-level candidates could be affected the most because the biggest salary hike is proposed for lower wage categories.
Proposal Not Final Yet
The proposed rule is currently open for public comments until May 26, 2026.
After reviewing feedback, the US Department of Labor will decide whether to implement the final version of the rule.
If approved, this could become one of the biggest changes to the H-1B visa system in recent years and may significantly impact global tech hiring patterns.
