The Trump administration has introduced a new plan that would require companies to pay significantly higher salaries to foreign workers on H-1B visas and certain green card programs.

Right now, companies hiring foreign professionals for jobs in the U.S. must pay them at least the government’s “prevailing wage”. This is calculated using data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics (OEWS) survey.

Jobs are divided into four levels based on the experience and skill required. The proposed rule would raise these minimum wage levels.

Here’s what the changes mean in simple terms:

H-1B Wage Level I (usually for entry-level or beginner jobs):

Currently set at the 17th percentile — meaning the minimum wage is at a level where only 17% of U.S. workers in that occupation and area earn less. The new rule would raise it to the 34th percentile.

Example: For an entry-level software developer role in a typical city, the required pay for an H-1B worker is often relatively low today (many fresh U.S. graduates already earn more). The change could increase the minimum by roughly 18% on average, bringing it closer to what many regular American workers in similar positions actually earn.

H-1B Wage Level II (for workers with some experience):

Currently at the 34th percentile → would rise to the 52nd percentile.

Example: This moves the minimum pay from a lower-middle range closer to the average wage in that field and location.

H-1B Wage Level III (for more experienced workers):

Currently at the 50th percentile (the median or middle wage) → would rise to the 70th percentile.

Example: Companies would need to pay at a level where 70% of U.S. workers in the same job and area earn less.

H-1B Wage Level IV (for senior or highly skilled roles):

Currently at the 67th percentile → would increase to the 88th percentile.

Example: Only the top 12% of U.S. workers in that role would typically earn more than the new minimum.

Why is the government doing this?

The main goal is to prevent companies from using lower-paid foreign workers to replace or undercut American workers. Critics have long said that some IT consulting and outsourcing firms use the H-1B program to keep labor costs down. Major users of H-1B visas in recent years include companies like Amazon, Microsoft, Meta, Google, and Tata Consultancy Services.

Businesses argue that H-1B workers fill genuine skill shortages that are hard to find among U.S. workers and that they already pay competitive wages. The administration believes the current system has been abused, particularly for lower-level tech jobs.

This is not the first attempt. A similar wage increase was proposed during Trump’s first term, faced court challenges, and was later withdrawn by the Biden administration. The current proposal revives the idea with updated methodology.

It also builds on other recent changes:

• The H-1B visa lottery now uses a weighted system that gives better chances to higher-paid and more senior workers.

• A separate $100,000 fee applies to certain new H-1B hires from outside the United States.

Labor Secretary Lori Chavez-DeRemer stated: “This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor, in addition to protecting the wages and job opportunities of American workers. The continued abuse of the H-1B program by certain bad actors will no longer be tolerated”.

What happens next?

The proposal is scheduled for official publication in the Federal Register on March 27, 2026. The public will have 60 days to submit comments. After reviewing feedback, the Department of Labor will decide on a final rule.

If finalized, the changes would make it more expensive for companies to sponsor foreign workers for entry-level or mid-level positions. The program would shift more toward truly high-skilled, higher-paying roles.