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US Proposes Higher Minimum Salaries for H-1B Visa Workers from 27 March 2026

Within three years, the annual cost could rise to  $43 billion  if most existing H-1B visas are renewed at higher wage levels


FAQ 

Q1: When did the US Department of Labor issue the proposed rule?
A: On 27 March 2026.

Q2: Which visa programmes does the proposal cover?
A: H-1B, H-1B1, E-3, and PERM labour certification programmes.

Q3: What is the full title of the proposed rule?
A: Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.

Q4: Why does the Department of Labor want to raise wages?
A: Because the existing wage levels were fixed about 20 years ago and are now outdated.

Q5: What is the new percentile for Level I (entry level)?
A: From 17th percentile to 34th percentile.

Q6: What is the new percentile for Level IV (most experienced)?
A: From 67th percentile to 88th percentile.

Q7: What is the proposed minimum salary for an entry-level software engineer in San Francisco?
A: About $162,000 per year.

Q8: Until when can the public submit comments?
A: Until 26 May 2026.

Q9: What presidential action led to this proposal?
A: A presidential proclamation issued on 19 September 2025.

Q10: How much could this proposal cost employers in the first year?
A: At least $18 billion.


Exam-Focused Points

  • Proposed rule date:  27 March 2026

  • Issuing body:  United States Department of Labor

  • Programmes covered:  H-1B, H-1B1, E-3, PERM

  • H-1B visa use:  Non-immigrant work visa for speciality occupations (IT, engineering, research)

  • Current problem:  Wage levels fixed for about 20 years (outdated)

  • Level I change:  17th → 34th percentile

  • Level IV change:  67th → 88th percentile

  • Example salary (San Francisco entry-level software engineer):  ~$162,000/year

  • Example salary (New York):  ~$132,000/year

  • Example salary (Dallas):  ~$113,000/year

  • Public comment deadline:  26 May 2026

  • Presidential proclamation date:  19 September 2025

  • First-year cost estimate:  At least $18 billion

  • Three-year cost estimate:  Up to $43 billion annually

  • H-1B1 visa applies to:  Nationals

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