The United States Department of Labor issued a proposed rule on 27 March 2026 to raise minimum salary thresholds for H-1B visa workers. The proposal covers H-1B, H-1B1, E-3, and PERM labour certification programmes in the United States.
H-1B Visa Wage Framework
The H-1B visa is a non-immigrant work visa used by the United States for speciality occupations that require theoretical or technical expertise. The visa is linked to prevailing wage rules, which set minimum pay levels for foreign workers in relation to local labour-market data. The proposed rule is titled Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States. The Department of Labor has stated that the existing wage levels were fixed about 20 years ago.
Proposed Wage Levels
The proposal seeks to raise prevailing wage floors across four experience levels. Level I would move from the 17th percentile to the 34th percentile of wage data, while Level IV would move from the 67th percentile to the 88th percentile. For an entry-level software engineer in San Francisco, the minimum H-1B salary would rise to about 162,000 a year. The proposed minimum salary for similar roles is about 113,000 in Dallas and about $132,000 in New York.
Public Consultation and Policy Background
The proposed changes are open for public comments until 26 May 2026. After the comment period, the Department of Labor will examine responses before issuing the final rule. This proposal follows a presidential proclamation issued on 19 September 2025 that directed the Department of Labor to revise prevailing wage levels under the H-1B programme.
Important Facts
- The H-1B visa is used in the United States for speciality occupations in fields such as information technology, engineering, and research.
- Prevailing wage rules are used in the United States to set minimum pay standards for certain foreign workers.
- The PERM labour certification process is part of the United States employment-based permanent residence system.
- The H-1B1 visa applies to nationals of Chile and Singapore under separate United States visa arrangements.
Cost Estimate and Labour Impact
Analysts estimate that the proposal could cost employers at least 18 billion in the first 12 months. The estimated annual cost could rise to 43 billion within three years if most existing H-1B visas are renewed at higher wage levels.