Trump administration is taking some serious steps to ensure that hiring foreign workers does not negatively impact the wages or working conditions of similarly employed U.S. workers. What this means is the biggest casualty will be the Indian workers going to the US on H-1B visas. According to U.S. government data, India received 71% of H-1B visas in 2024, making it the largest beneficiary. information technology sector
So, what’s new? After implementing a wage-based selection process for H-1B visas and introducing a new $100,000 petition fee for foreign workers, the Trump administration is now proposing a hike in the wage levels for foreign workers, particularly H-1B workers. Over 80% of all workers entering the US to work under various programs are H-1B workers.
The motive is straightforward: by increasing wage levels, the incentive for US employers to hire foreign workers instead of American workers may be reduced.
The US Department of Labour proposals are open for public comments until May 26. After reviewing the feedback, the department will announce the final rule.
Wage Level Changes — What the Numbers Say
The proposed wage increases are significant across all four wage levels. Under the proposed rule changes, the new prevailing wage for Wage Level I — typically entry-level positions — has been set at $97,746, up from the old prevailing wage of $73,279. This represents a 33.39% increase over the old prevailing wage and an 18.33% increase over the currently offered wage of $82,607.
At the other end of the spectrum, the new prevailing wage for Wage Level IV — the highest skill level, covering fully competent and experienced workers — has been set at $1,75,464, compared to the old prevailing wage of $1,44,202. This marks a 21.68% increase over the old prevailing wage and a 7.77% increase over the currently offered wage of $1,62,807.
The Core Problem
The current wage system allows employers to pay foreign workers significantly less than equivalent American workers, according to DOL. In FY 2024, the average H-1B wage was about $10,191 lower than comparable US worker wages — and $10,972 lower in computer-related jobs specifically.
As part of its analysis, the Department found a wide (over $19,000 per worker on average) discrepancy between the wages earned by U.S. workers in the same occupations and locations and the prevailing wage levels assigned to corresponding LCA applicants.
The Proposals
The US Department of Labor has proposed revisions to the regulations regarding prevailing wages for employers hiring foreign workers on a permanent or temporary basis.
The programs impacted will be EB-2 and EB-3 employment-based immigrant visas via the Permanent Labor Certification (PERM) program, as well as H-1B, H-1B1, or E-3 nonimmigrant visas.
Specifically, DOL is proposing to amend its regulations governing the PERM program and Labor Condition Applications (LCAs) to incorporate changes to the computation of wage levels under the Department’s four-tiered prevailing wage structure based on the Occupational Employment and Wage Statistics (OEWS) wage survey administered by the Department’s Bureau of Labor Statistics (BLS).
Understanding the Data
These proposed revisions aim to align prevailing wage levels with those of U.S. workers in similar occupations and locations, while also enhancing program integrity by discouraging employers from using these programs to replace U.S. workers with lower-paid alien workers.
The table below shows a comparison of historical and proposed prevailing wage levels alongside offered wages from LCA data spanning 2020 to 2024. The column labeled “Pct Increase PW” reflects the percentage increase from the old to the new prevailing wage levels.
While “Pct Increase PW” reflects the maximum potential impact—assuming all workers, including those already earning above the new prevailing wage, receive increases—“Pct Increase Offered Wage” provides a more refined estimate.
Why It Matters
A September 2025 Presidential Proclamation by Trump labeled the H-1B program as “deliberately exploited.” Supporting that view, 63% of H-1B jobs in FY 2024 were at the lowest wage levels, indicating that the H-1B program may be used for cheaper labor instead of specialized talent.
There were 502,374 H-1B applications certified in FY 2024. The scale of impact is significant. The new proposals will impact hundreds of thousands of H-1B, H-1B1, E-3 visa holders and employers, particularly in the tech sector, where Software Developers constitute over 32% of certified applications.
Disclaimer: This article is based on the US Department of Labour’s proposed rule as available at the time of publication. The final rule may differ following the public comment period ending May 26. This article should not be construed as legal or immigration advice. Readers are advised to consult a qualified immigration attorney for guidance specific to their situation.