The Trump administration’s proposed H-1B wage hike could raise salary requirements for foreign workers and make US hiring more expensive for employers.
The rule, published by the US Department of Labor on Friday, March 27, 2026, is open for public comments until Tuesday, May 26, 2026, before any final decision is made.
What the New H-1B Rule Proposes
The proposal, titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,” seeks to update wage levels that officials say no longer reflect today’s labor market.
Under the plan, entry-level H-1B salaries could rise from $73,279 to $97,746 a year. Level II wages may increase to $123,212, Level III to $147,333, and Level IV to $175,464. Actual pay requirements would still depend on job role and location.
Why Indian Tech Workers Could Be Hit Hardest
Indian professionals may face the biggest impact because they make up the largest share of H-1B visa holders. Higher wage rules could make employers more selective, especially for junior roles and overseas hiring.
The proposal also covers H-1B1, E-3 and PERM labor certification programs, meaning the impact could extend beyond the technology sector.
Impact on US Companies
Technology, finance, healthcare, engineering, research and higher education employers could face higher labor costs if the rule is finalized.
Supporters say the change would protect US workers from wage undercutting. Critics argue it could slow recruitment, reduce entry-level sponsorships and make it harder for American companies to attract global talent.
