U.S. proposes 30% H-1B minimum wage increase

The US has proposed raising the minimum wages paid under the H1B visa program by 30 per cent over previously fixed limits, saying the move is aimed at stopping foreign hires from undercutting the pay of US nationals.

The proposal would revise minimum pay across four wage categories, from entry-level workers to the most-experienced. The administration argues the current wage levels were set 20 years ago and no longer adequately protect US workers.

Under the new rule, entry-level prevailing wages would rise to 97,746 US Dollars, which the proposal describes as a 33.39 per cent increase over the old rates. The prevailing wages differ from city to city.

According to the Department of Labour, "The current methodology allows employers to hire foreigners at wage levels significantly below those paid to similarly employed US nationals."

The proposed changes would sharply raise the prevailing wage levels used in the H1B, H1B1, E-3, and PERM labour certification programs.

Response to the proposal has been divided. The article said reactions ranged from overwhelming support to opposition, with critics contending that smaller companies may no longer be able to hire freshers for entry-level jobs because of the higher prevailing wages.

The rule is open for public comments until May 26. After that, the Department of Labour will review the responses and notify the final rule.

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