US Department of Labor recommends pay hike for H-1B visa holders

The US Department of Labor has submitted a proposal to the White House seeking to rise the wages of H-1B and other work permit holders. According to report, the proposal seeking a pay hike in the minimum wages could significantly impact the H-1B visa programme. The details of the proposal have not been announced yet, but it is understood that the draft is being reviewed by the White House Office of Management and Budget.

According to the Economic Times, the administration of President Donald Trump may clear the proposal before the presidential elections in November. If given the nod, it will be implemented immediately without public comment, unlike the case with most other rules.

The proposed rule does not provide details of the proposed restructuring, but there is expectation that the minimum level would be increased to level 2 or 3.

The labour department determines wages based on prevailing rates for a given role across different regions in the country, the Economic Times report said.

Four out of five employers who bring in employees on H-1B visas pay 20% higher wages to those with the work permit than average market salaries, according to an analysis of US Department of Labor data by American think-tank CATO Institute.

The average offered wage for all 61,420 H-1B requesting employers in financial year 2019 was $100,461. The average prevailing wage determination was $83,619, the ET report added.