The U.S. government has proposed major revisions to H-1B visa regulations, offering a substantial wage boost to foreign workers, particularly Indians. Under the new framework, H-1B employees could see their average annual salaries increase by approximately $14,000 (around ₹11.6 lakh). The changes aim to reduce wage disparities between local and foreign workers and prevent companies from hiring foreign employees at lower pay solely to cut costs.
The proposed wage reforms follow presidential directives issued in September 2025. The Department of Labor highlighted that the current system allows companies to hire foreign workers at lower salaries, negatively affecting American labor standards. The gap is especially noticeable in high-skill sectors such as IT, where foreign employees often earn significantly less than Americans performing similar work. Analysis indicates that H-1B workers earn on average $10,191 less per year than American counterparts, with the gap even higher in computer-related occupations.
Currently, 63 percent of H-1B positions fall under the lowest wage categories, Level-1 and Level-2, despite requiring specialized skills. The proposed reforms would raise these minimum salary thresholds, ensuring foreign employees are paid closer to market rates. This change is expected to inject an additional $6.56 billion annually into the salaries of foreign H-1B workers, whose current average pay stands at $121,908.
The new regulations will apply only to future H-1B applications, leaving existing visa holders unaffected. The government is collecting public feedback before finalizing the rules and is providing companies time to adjust to the increased salary requirements. The move also underscores a broader effort to prioritize skilled American workers in sectors impacted by automation and artificial intelligence.