US Proposes 30% H1B Minimum Wage Hike, Impacts Indian Tech, TechGig

The US administration has put forth a proposal to increase the minimum wages for employees under the H1B visa program by 30% over previous limits. This initiative, which the administration states will help prevent foreigners from undercutting the salaries of US nationals, is now open for public comments until May 26.

The new rule aims to raise minimum wages across four categories, from entry-level to the most experienced positions. The Department of Labour argues that current wage levels, set two decades ago, no longer adequately protect US workers.

Specifically, the proposed changes would increase the prevailing wages for entry-level workers to 97,746 US Dollars, marking a 33.39% hike from existing rates. It is important to note that these prevailing wages vary by city.

Impact on Hiring Programs

The proposed alterations are set to significantly increase prevailing wage levels for H1B, H1B1, E-3, and PERM labour certification programs.

The Department of Labour indicates that the current system allows employers to hire foreign workers at wages considerably lower than those paid to similarly employed US nationals.

While the proposed rules have garnered mixed reactions, with some supporting the move and others opposing it, concerns have been raised that smaller companies might find it difficult to hire freshers for entry-level roles due to these higher prevailing wages.

After the public comment period closes on May 26, the Department of Labour will review the feedback and issue the final rule.