H-1B registrations for the 2027 season have fallen sharply. From 343,981 registrations in fiscal year 2026, the number has plummeted by 38.5% to just 211,600 in fiscal year 2027.
This steep drop is no accident — it reflects a deliberate shift in US policy.
The US government is making it harder and more expensive for employers to hire foreign workers. There are two key reasons behind this.
First, a wage-based selection process has been introduced. Second, employers must now pay a $100,000 petition fee for each foreign hire. Together, these measures are designed to make foreign labour costlier, nudging US employers to hire American workers instead.
On top of these two changes, a third measure is now on the table.
The U.S. Department of Labor (DOL) has proposed a new rule that would significantly increase the wages employers must pay when hiring foreign workers, both for temporary and permanent positions. If adopted, this rule would push H-1B salaries considerably higher across all experience levels.
The rule would affect prevailing wages for employment opportunities that US employers seek to fill with foreign workers through certain EB-2 and EB-3 employment-based immigrant visas via the Permanent Labor Certification (PERM) program, or through H-1B, H-1B1, or E-3 nonimmigrant visas. The proposed rule was introduced on March 27, 2026, and interested individuals have been invited to submit their comments on or before May 26, 2026.
Why Does the DOL Want Higher Wages?
The DOL wants to raise wage levels to reduce the incentive to replace American workers with low-wage foreign visa holders — effectively closing a loophole that some employers have long exploited. The draft rule uses data from the Occupational Employment and Wage Statistics (OEWS) wage survey to set the prevailing wage levels for temporary and permanent visas.
Proposed H-1B Prevailing Wage Increases
Here is how the proposed wage hikes break down across the four levels:
Level 1 — Entry: Biggest Jump. The proposed wage floor rises from the 17th percentile ($73,279) to the 34th percentile ($97,746) — a 33.39% increase, the steepest among all four levels. This means entry-level H-1B workers would need to be paid nearly $24,500 more annually under the new rule.
Level 2 — Qualified: Significant Hike. The threshold moves from the 34th percentile ($98,987) to the 52nd percentile ($123,212) — a 24.47% increase. Employers hiring qualified H-1B workers would need to budget over $24,000 more per hire per year.
Level 3 — Experienced: Moderate Rise. The prevailing wage benchmark shifts from the 50th percentile to the 70th percentile — a 20.79% increase, pushing experienced H-1B workers firmly into above-median wage territory.
Level 4 — Fully Competent: Substantial Increase. The wage floor moves from the 67th percentile to the 88th percentile — a 21.68% increase. Fully competent H-1B workers would already command near-top-tier wages, and this proposal pushes that requirement close to the 90th percentile threshold.
Where Will the Impact Be Felt the Most?
The most significant impact will be felt at the entry level (Level 1), which saw the highest proposed wage increase of 33.39%. Raising the floor from the 17th to the 34th percentile practically doubles the pay percentile requirement for the bottom rung, making it far more expensive for businesses to bring in new or junior H-1B workers. This could disproportionately affect IT service providers, staffing organisations, and employers who rely heavily on entry-level H-1B workers.
The profile of selected H-1B workers is already changing. USCIS recently announced preliminary data showing that in the H-1B 2027 season, only 17.7% of all selected registrations were in the lowest wage category, and 71.5% of selected candidates hold a US master’s degree or higher — compared to 57% last year.
Taken together, all three measures — the wage-based selection, the $100,000 petition fee, and the proposed wage rule — point in one clear direction. The road for low-skilled foreign workers is likely to get even narrower.
Overall, the Trump administration’s efforts are a clear sign that the days of abusing the program with mass, low-wage registrations are over, and that the program is better serving its intended purpose of attracting highly skilled foreign workers and protecting the wages, working conditions, and job opportunities of American workers.
Disclaimer: This article is based on publicly available information and is for informational purposes only and does not constitute legal or immigration advice. Readers are advised to consult a qualified US immigration attorney for guidance specific to their situation.