The US has proposed to increase the minimum wages paid to hire an employee under the H1B visa program by 30 per cent over the previously fixed limits, a move the administration claims will help prevent foreigners from undercutting salary of US nationals.
The new rule seeks to increase the minimum wages for four categories from the entry-level to the most-experienced, contending that the existing wage levels were fixed 20 years ago and fail to adequately protect US workers.
The new rule, which is now open to public comments till May 26, seeks to increase the prevailing wages for entry-level workers to 97,746 US Dollars, a hike of 33.39 per cent over the old rates. The prevailing wages differ from city to city.
According to the Department of Labour, the current methodology allows employers to hire foreigners at wage levels significantly below those paid to similarly employed US nationals.
The proposed changes will dramatically increase the prevailing wage levels used in the H1B, H1B1, E-3, and PERM labour certification programs.
The proposed rules have received mixed responses, ranging from overwhelming support to opposition, contending that smaller companies may no longer be able to hire freshers for entry-level jobs, given the higher prevailing wages.
The window for public comments closes on May 26, following which the Department of Labour will examine the responses and notify the final rule.
