The Department of Labor (DOL) proposed increasing the H-1B wage minimums in an announcement of their anticipated changes to the visa’s wage rules. The new rule takes effect on May 26, 2026. This rule also applies to the H-1B1 and E-3 visas along with the Permanent Labor Certification (PERM).
Policy Changes
The proposed rule resurrects a government initiative increasing the prevailing wages for the H-1B visa. That rule faced challenges in court and ultimately scrapped in 2021. Under the proposed rule, the prevailing wages for all levels in the H-1B lottery. The DOL calculates prevailing wages based on percentile average wage for an occupation. For example, Skill Level I’s wage minimum is based on the 17th percentile of the average wage for the beneficiary’s occupation.
The increases are as follows:
- Skill Level I:
- Increases from 17% to 34%.
- Skill Level II:
- Increases from 34% to 52%.
- Skill Level III:
- Increases from 50% to 70%.
- Skill Level IV:
- Increases from 67% to 88%.
Impact
Under the new rule, foreign workers see significant increases in wage minimums for the H-1B, along with the other impacted visas and PERM. These newly proposed percentages are identical to those dismantled by the government in 2021. Currently, the DOL is allowing public feedback on the proposed wage changes until the end of the grace period on May 26. Therefore, they won’t affect the FY 2027 H-1B cap.
As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.