The US Department of Labor has proposed a significant increase to the minimum wages employers must pay foreign hires under H-1B and related programmes, saying the move is needed to better protect US workers and prevent wage undercutting. The proposed rule, published March 27, would raise prevailing wage levels across four experience categories used in H-1B, H-1B1, E-3 and PERM labor certifications.
Under the current schedule, prevailing annual wages are $73,279 for entry-level positions, $98,987 for Level II, $121,979 for Level III and $144,202 for Level IV. The department’s proposal would lift those figures to $97,746 (entry-level), $123,212 (Level II), $147,333 (Level III) and $175,464 (Level IV). That represents increases of roughly 33.4%, 24.5%, 20.8% and 21.7% respectively, though actual prevailing wages vary by city and occupation.
Officials say the existing wage methodology—largely unchanged for about 20 years—allows employers to hire foreign nationals at pay rates significantly below those of similarly employed US workers. By raising prevailing wage levels, the department aims to reduce incentives to displace or underpay domestic workers.
The proposal is open for public comment through May 26; after the comment period closes the department will review submissions and determine a final rule. Responses so far have been mixed: some labor advocates and worker groups support the change as a needed protection, while many employers and industry groups warn that higher mandated wages could make it difficult for smaller firms to recruit entry-level talent and hire recent graduates.
The move follows prior and recent federal actions on H-1B policy. In 2020 the previous administration attempted prevailing-wage changes without public notice, but those changes were later halted amid legal challenges. In September 2025, a presidential order introduced a $100,000 fee for certain H-1B candidates abroad and directed the Secretary of Labor to pursue rulemaking to revise prevailing wage levels.
The Department of Labor’s proposal represents one of the most substantial adjustments to prevailing wage calculations in decades and could reshape hiring practices for companies that rely on specialty-occupation visas.
