Washington: United States has proposed a nearly 30% increase in minimum wage requirements for workers employed under the H-1B visa programme.
The US administration said the move is intended to prevent companies from using foreign workers to undercut wages of American employees.
New wage structure proposed across four skill levels
Under the proposed rule presented by the US Department of Labor on March 27, minimum salary thresholds would be increased across four categories ranging from entry-level to highly experienced workers.
According to the proposal titled “Improving Wage Protections for the Temporary and Permanent Employment of Certain Immigrants in the United States”, the revised annual wage levels would be:
Entry-level workers: USD 97,746
Level 2 workers: USD 123,212
Level 3 workers: USD 147,333
Level 4 workers: USD 175,464
Officials noted that the wage thresholds may vary from city to city depending on local labour market conditions.
Existing wage system outdated, says Labour Department
The Labour Department argued that the current wage structure was established nearly 20 years ago and no longer adequately protects American workers.
According to the department, existing rules have allowed employers to hire foreign workers at significantly lower wages compared to US employees in similar positions.
Public comments invited until May 26
The proposed regulations have been opened for public comments until May 26 before any final decision is taken.
The H-1B visa programme is widely used by US technology and consulting companies to hire skilled foreign professionals, particularly from India. Any increase in wage requirements could significantly impact hiring costs for companies employing H-1B workers.
