The US government is planning a major change that could directly affect thousands of foreign workers, especially Indians working in the tech sector.
The US Department of Labor has proposed a new rule to increase the minimum salary requirement for H-1B and similar visa holders by an average of 30%.
The proposal is called “Improving Wage Protections” and is currently open for public feedback until May 26.
Why Is the US Increasing H-1B Salaries?
According to reports, the main goal of the new rule is to protect jobs for American citizens and stop companies from hiring foreign workers at lower salaries.
The US government believes some companies use cheaper foreign labor instead of hiring local workers. By increasing the minimum wage requirement, companies will now have to pay significantly higher salaries to employ foreign professionals.
This means hiring overseas workers will become much more expensive than before.
Freshers Could See the Biggest Salary Jump
The proposed salary increase will affect all skill levels, but entry-level employees may see the highest jump.
Here’s how the minimum annual salary could change:
Proposed H-1B Minimum Salary Changes
Entry-Level/Freshers
Current: $73,279
Proposed: $97,746
Increase: 33.39%
Junior/Mid-Level
Current: $98,987
Proposed: $123,212
Increase: 24.47%
Experienced Professionals
Current: $121,979
Proposed: $147,333
Increase: 20.79%
Top-Level Experts
Current: $144,202
Proposed: $175,464
Increase: 21.68%
For many companies, especially startups and smaller firms, paying such high salaries to freshers may not be financially possible.
Big Impact on Indian IT Companies
Indian IT giants like Tata Consultancy Services, Infosys, and Wipro could also face higher onsite employee costs in the US.
Experts believe this may reduce profit margins for these companies. Some firms may even pass the extra cost to their clients by increasing service charges.
At the same time, many American companies may prefer hiring local US citizens instead of sponsoring foreign visa workers.
Why This Could Be Difficult for Indians
The new rule may create challenges for Indian students and young professionals looking for jobs in the US.
Since companies will need to offer much higher starting salaries, many employers may avoid hiring fresh foreign workers altogether. Startups and small businesses are expected to be the most affected.
However, experienced professionals already working in the US may benefit from the rule. During visa renewals, companies could be required to offer them higher salaries.
Mixed Reactions to the Proposal
The proposal has received both support and criticism.
Supporters say the wage system has not been updated properly for nearly 20 years and that the change is necessary to ensure fair pay standards.
Critics, however, argue that smaller companies may no longer be able to afford hiring foreign talent, especially for entry-level roles.
This is also not the first time such a proposal has appeared. During the first term of Donald Trump in 2020, the administration tried to revise prevailing wage rates without public consultation. That move faced legal challenges and was later withdrawn.
This time, the government is officially following the public comment process before making a final decision.
