Proposed U.S. Visa Wage Increase Could Significantly Raise Costs for H-1B and PERM Employers

The U.S. Department of Labor (DOL) has submitted a major new rule for federal review that could increase wage requirements for H-1B and PERM visa programs, potentially raising costs for American companies that employ foreign professionals.

Titled “Improving Wage Protections for H-1B and PERM Employment in the United States,” the proposal is currently under review by the Office of Management and Budget (OMB). Full details, including updated wage calculations, will be released once the review is complete, followed by a public comment period.

Experts warn the rule could mirror a prior 2025 attempt that disrupted labor markets by drastically increasing required salaries for visa holders. For example, positions paying $120,000 were briefly required to meet over $230,000 in compliance, creating significant operational and financial strain for employers.

If enacted, the new rule could affect new H-1B filings, extensions, and PERM-based green card sponsorships. Industries such as technology, healthcare, and consulting could face sharply higher labor costs, potentially prompting some companies to move roles overseas or scale back sponsorship altogether.

The proposed wage hike marks a significant shift in U.S. immigration policy, aiming to ensure fair pay for foreign workers but raising concerns over its impact on business operations and the skilled labor pipeline.