The Donald Trump administration is preparing to tighten wage rules for foreign professionals working in the United States on visas such as H-1B and PERM. While a salary hike usually sounds positive, experts warn that this move could actually hurt international workers and students hoping to build careers in the US.
As per reports, a proposal with the title “Improving Wage Protections for H-1B and Permanent Employment” has been sent to the Office of Budget by the US Department of Labor (DOL). The proposal, if sanctioned, would result in a marked increase in the wage floor for H-1B visa holders, thus raising the cost of recruiting foreign professionals for businesses.
Priority to American Workers
The primary aim of the proposal is to discourage US companies from hiring foreign professionals by increasing wage obligations, thereby giving preference to local American workers. Though the full details are yet to be made public, the new rules are expected to mirror the stricter regulations introduced during Trump’s previous term.
What Happened Earlier
Trump’s last term saw the introduction of a plan to alter the salary brackets for H-1B, H-1B1, and E-3 visa employees in 2021, which was however, blocked from execution due to court cases and change of focus of the Biden government. In 2025, when Trump becomes the president again, the Labor Department will be instructed to bring back and rework these pay rules.
The lawyer for immigrants, Emily Newman, was posting warnings on social media saying that the decision could lead to major cost hikes for H-1B and PERM recruitment and she advised the companies to watch very carefully the evolution.
How Wages Are Calculated
The DOL currently calculates foreign worker wages across four levels to ensure parity with US-born employees. Officials argue that higher wage floors will prevent companies from hiring foreign workers at lower pay, which they believe undercuts domestic employment opportunities.
Impact on IT and Healthcare Sectors
Industry experts fear the new rules could severely affect sectors like technology and healthcare, which rely heavily on skilled foreign professionals.
- Higher salary burden: Positions that used to provide about $120,000 (₹1 crore) per year now can demand $230,000–$240,000 (almost ₹2 crore) as salaries.
- Beyond new hires: The suggested increase in pay would not only cover new applications but also visa extensions and job transfers.
- Outsourcing risk: Companies will probably cut back on US hiring and transfer roles to lower-cost countries such as India instead considering the increased expenses.
If implemented, the proposal could have a major impact on thousands of foreign professionals—especially Indian IT workers—who aspire to work and settle in the United States.
