US H-1B salary hike: How proposed 30% pay rise could hurt Indian job seekers

Washington: Indian professionals looking to work in the United States may soon face stricter hiring conditions. The US Department of Labour has proposed new rules that will remarkably raise the minimum starting salaries companies must pay foreign workers on H-1B visas.

The H-1B visa is the primary work visa used by American companies, especially in the technology, engineering and healthcare sectors, to hire foreign experts. Tens of thousands of Indian professionals rely on this visa every year to build careers in the US.

Under the new proposal, the minimum required salaries for H-1B workers could increase by 21 per cent to 33 per cent, depending on their experience level.

• Entry-level roles: Facing the highest jump of nearly 33 per cent.
• Mid-level roles: Expected to see a 24 per cent increase.
• Senior roles: Expected to rise by roughly 21 per cent.

US officials say the higher salary rules are meant to ensure foreign workers are not paid less than American employees doing the same job. Official studies showed that foreign workers were paid around $10,000 less on average than their American colleagues.

While the new rules mean higher salaries for those who get hired, they also make it much more expensive for US companies to sponsor foreign talent. Experts warn that the steep rise in entry-level salaries will hurt young Indian graduates and junior software engineers the most, as companies may choose to hire local Americans, automate junior positions or move jobs back to India to save costs.

This salary proposal comes alongside other recent changes to the H-1B system, including a new selection process starting in February 2026 that gives preference to higher-paying jobs, as well as a proposed $103,265 processing fee for visa applications.