US Labor Department Proposes Wage Increases for H-1B Workers

On March 26, 2026, the US Department of Labour proposed a rule to increase the wage floor for foreign workers employed through the H-1B, H-1B1, E-3, and permanent labour certification (PERM) visa programmes. This proposal, issued by the Department's Employment and Training Administration, seeks to revise how prevailing wage levels are calculated, requiring employers to offer foreign workers wages that are more reflective of actual market rates.

Currently, prevailing wages are often set below the earnings of American workers, particularly in entry-level STEM roles. The new methodology will use percentile thresholds from the Bureau of Labour Statistics' Occupational Employment and Wage Statistics survey.

US Secretary of Labour Lori Chavez-DeRemer stated that these changes aim to reduce the economic incentive for employers to underpay visa holders and to ensure fair competition in the labor market. Employers must currently pay the higher of the prevailing wage or the actual wage of similarly qualified US workers, and the proposed adjustments are intended to enhance wage parity between foreign and domestic workers.