Proposed Wage Hike for H-1B Workers 

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The Trump administration has proposed raising wage requirements for H-1B workers. The aim is to reduce reliance on low-cost foreign labour and encourage U.S. employers, especially in the tech sector, to prioritise domestic hiring. The higher salary thresholds are intended to ensure that foreign hiring is based on genuine skill shortages rather than cost advantages. 

Who is an H-1B worker?  

An H-1B worker refers to a foreign national employed in a specialised occupation in the United States, typically requiring a bachelor’s degree or higher.  This category is frequently used in fields such as technology, engineering, and finance, among others. These workers are sponsored by U.S. employers and form a significant part of the skilled workforce, particularly in innovation-driven industries. 

Proposed Wage Increase 

Under the proposal by the U.S. Department of Labor, wages for roles such as software developers could rise by 21% to 33%, depending on experience. While critics say the H-1B program has been used to replace higher-paid U.S. workers, others argue there is limited evidence of wage differences among equally qualified professionals. 

Policy Background and Lottery Changes 

The proposal is similar to a rule introduced during President Trump’s first term and aligns with recent changes to the H-1B lottery system that favour higher-paid applicants. The program, capped at 85,000 visas annually, remains a key pathway for skilled professionals, including international students. 

Key Highlights: 

• The Trump administration plans to raise H-1B wage thresholds by 21% to 33% to prioritise U.S. workers.  

• The U.S. Department of Labor proposal also aligns with lottery changes favouring higher-paid applicants.  

• The measures reflect a broader push to reduce reliance on foreign labour while focusing on higher-skilled immigration.  

Will this protect U.S. jobs or make it harder for companies to access global talent? We are closely monitoring these developments to see how they impact hiring strategies and the future of skilled immigration.