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

Overview

On 27 March 2026, the US Department of Labor proposed a new rule. It will raise the minimum salary for H-1B visa workers. The lowest wage level moves from the 17th to the 34th percentile. The highest level moves from the 67th to the 88th percentile. For an entry-level software engineer in San Francisco, the minimum salary becomes about $162,000 per year.

What Did the US Department of Labor Propose?

On 27 March 2026, the United States Department of Labor issued a proposed rule. This rule raises the minimum salary thresholds for H-1B visa workers. It also covers H-1B1, E-3, and PERM labour certification programmes. The rule is called "Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States."

What is the H-1B Visa?

The H-1B visa is a non-immigrant work visa for the United States. It is for speciality occupations. These jobs need theoretical or technical expertise. Examples include information technology, engineering, and research. The visa follows prevailing wage rules. These rules set the minimum pay for foreign workers based on local labour market data.

Why is the Change Needed?

The Department of Labor said that the existing wage levels were fixed about 20 years ago. They are now outdated. So the department wants to raise the wage floors.

What Are the New Proposed Wage Levels?

The proposal changes four experience levels:

• Level I (entry level):  From 17th percentile to 34th percentile of local wages

• Level IV (most experienced):  From 67th percentile to 88th percentile

This means employers must pay more to foreign workers.

Example Salaries for a Software Engineer

For an entry-level software engineer:

• In  San Francisco  – minimum salary rises to about  $162,000 per year

• In  New York  – about  $132,000 per year

• In  Dallas  – about  $113,000 per year

Public Consultation Period

The proposed changes are open for public comments until  26 May 2026 . After that, the Department of Labor will review the responses. Then it will issue the final rule.

What Led to This Proposal?

On 19 September 2025, a presidential proclamation directed the Department of Labor to revise the prevailing wage levels under the H-1B programme. This proposal is the result of that order.

How Much Will This Cost Employers?

Analysts have made estimates:

• In the first 12 months, the proposal could cost employers at least  $18 billion