US Clears Proposal to Raise H-1B and PERM Wage Requirements
Sanjeev Kumar February 25, 2026 10:35 PM

If you are planning to work in the United States on an H-1B visa or apply for a green card through your employer, this is something to watch closely.

The US Department of Labor has taken a step toward changing how wages are calculated under the H-1B visa and the PERM (Program Electronic Review Management) labor certification program.

The proposal has now cleared review by the Office of Management and Budget. That means it is closer to becoming public. But it is not the law yet.

What Has Happened So Far?

The Department of Labor has drafted a new rule that would revise wage requirements for:

  • H-1B nonimmigrant workers
  • PERM labor certification applicants, which is part of the employment-based green card process

Before any major federal rule is published, it must be reviewed by the Office of Management and Budget. That review is now complete.

The next step is publication in the Federal Register. Once it is published, the public will be able to see the full details and submit comments.

Until then, the exact changes remain unknown.

What Could Change for H-1B and PERM?

While the full proposal is still confidential, it could increase prevailing wage levels.

Let’s break that down.

The “prevailing wage” is the minimum salary an employer must pay a foreign worker for a specific role in a specific location. It is meant to match local market standards.

If the government raises prevailing wage levels:

  • Employers may have to pay H-1B workers higher salaries
  • Green card sponsorship under PERM could become more expensive
  • Some roles may no longer qualify under the current salary structures

In simple terms, higher wage requirements can make sponsorship harder for some employers, especially smaller companies.

Why This Sounds Familiar

This is not the first time the US government has tried to change H-1B wage rules.

In 2021, during the first Trump administration, the Department of Labor finalized a rule that would have restructured the four-level prevailing wage system. That rule would have raised wage minimums across all levels.

However, it was challenged in court. After the change in administration, the Biden-era Department of Labor abandoned that rule.

Later, the Biden administration signalled plans to release its own wage proposal. That effort was delayed several times and eventually removed from the regulatory agenda.

Now, a new proposal has cleared federal review. It is not yet clear whether it is similar to the 2021 version or something entirely different.

What This Means for Skilled Foreign Workers

Right now, nothing has changed. The proposal must:

  1. Be published in the Federal Register
  2. Go through a public comment period
  3. Be finalised through the formal rulemaking process

Only after all of that could it take effect.

Still, this is an early warning sign. If you are:

  • Planning to apply for an H-1B visa
  • Waiting on PERM approval
  • Negotiating a job offer tied to visa sponsorship

It is smart to stay informed.

Wage rules directly affect eligibility, employer costs, and long-term immigration strategy.

What to Watch Next

The key moment will be publication in the Federal Register. That is when the details become public. Until then, everything remains speculation.

For now, this is a development worth tracking, not a reason to panic. But if wage levels do increase, the impact on H-1B hiring and employment-based green cards could be significant.

As always with US immigration policy, the details will matter.


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