US proposes rule to revise H-1B, PERM wage calculations, may impact Indian workers
The US Department of Labor has proposed changes to H-1B and PERM wage rules that may raise salary thresholds and affect Indian workers and US employers.
In a move that can change how much US companies must pay their foreign workers, the United States Department of Labour has recently proposed a rule aiming at revising two key immigration programs, the H-1B visa and the PERM labour certification process.
The proposal was recently reviewed by the Office of Management and Budget (OMB), which is the key step before any federal rule is announced, reported the Financial Express. After this, it will be published in the Federal Register, where federal rules are officially announced.
Impact on prevailing wages
The proposal could lead to an increase in “prevailing wages,” the minimum salaries that US employers must pay foreign workers. These wage benchmarks are determined by the nature of the job and its location.
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If the method used to calculate them is revised, it would directly affect how much companies are required to pay, who qualifies under the salary criteria and whether employers decide to sponsor foreign workers in the first place.
Final rule awaited
The full text of the rule has not yet been made public. According to the report, immigration experts expect that it may alter the way wage levels are computed and potentially raise salary thresholds across several occupations. If that happens, hiring foreign professionals could become significantly more expensive for US companies, particularly those that rely heavily on skilled overseas talent.
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However, the proposal is not final. Even after clearing federal review, it must go through a public comment period and complete additional rulemaking steps. Once published, individuals, businesses and advocacy groups will be able to submit feedback before the department decides whether to finalise the rule.
Impact on Indian Professionals
Indian nationals make up the vast majority of H-1B visa holders and represent a large share of applicants for employment-based green cards, especially in the technology and healthcare sectors.
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According to data from US Citizenship and Immigration Services, in fiscal year 2024, 71 per cent of all approved H-1B petitions, including extensions, were granted to Indian beneficiaries, roughly 2.8 lakh approvals. Given these figures, any revision to prevailing wage requirements is likely to have a substantial impact on Indian professionals and the companies that employ them.