The Department of Homeland Security (DHS) has proposed a major change to the H-1B visa program that could reshape how skilled foreign workers are selected for jobs in the United States 🇺🇸. As of July 25, 2025, the most important update is the plan to move from the current random lottery system to a Wage-Based H-1B System. This update is designed to prioritize higher-paying jobs, which could have a big impact on both employers and foreign professionals hoping to work in the United States 🇺🇸.
Let’s break down what’s changing, who will be affected, what actions are needed, and what this means for people with pending applications or those planning to apply in the future.
Summary of What Changed
The main change is the proposed shift from a random lottery to a wage-based selection process for H-1B visas. Under the current system, employers register their candidates, and a computer randomly selects who can apply for the limited number of H-1B visas each year. The new proposal would instead give priority to jobs that offer higher salaries. This means that people with higher H-1B salary offers would have a better chance of being selected.
Who Is Affected
- Employers: All U.S. companies that want to hire foreign workers using the H-1B visa will need to follow the new rules if the proposal is adopted.
- Foreign Workers: Anyone hoping to get an H-1B visa will be affected, especially those in jobs with lower salary offers.
- Outsourcing Companies: Firms that have traditionally submitted large numbers of low-wage H-1B applications may find it much harder to get visas approved.
- U.S. Workforce: American workers may see changes in wage standards and job competition, especially in industries that rely heavily on H-1B workers.
Effective Dates
As of July 25, 2025, the wage-based system is still a proposal and has not yet been put into effect. DHS is reviewing public comments and working on the final rule. If the rule is adopted, DHS will announce the official start date. Employers and workers should watch for updates from the U.S. Citizenship and Immigration Services (USCIS) and DHS.
Required Actions
- Employers: Start preparing to provide detailed salary information for each H-1B candidate during the registration process. Review your wage levels and job offers to make sure they are competitive.
- Foreign Workers: Understand how your offered salary compares to others in your field and location. If possible, negotiate for higher pay to improve your chances.
- Pending Applicants: If you have already registered or applied under the current lottery system, your application will be processed under the existing rules until the new system is officially adopted.
How the Wage-Based H-1B System Works
The proposed system uses four government-defined wage levels for each job and location:
- Level I: Entry-level positions
- Level II: Qualified workers with some experience
- Level III: Experienced workers
- Level IV: Highly experienced or specialized workers
When employers register their H-1B candidates, they must state the wage level and salary for each job. The government will first give visas to jobs offering Level IV wages, then Level III, and so on, until all visas are used up. If there are more applicants at a certain wage level than available visas, a lottery will be held just for that level.
Advantages of the Wage-Based H-1B System
The new approach brings several important benefits:
- Raises Average H-1B Salaries: By giving priority to higher-paying jobs, the system increases the average H-1B salary. This means more foreign workers will be hired for roles that create greater economic value.
- Discourages Program Abuse: Some outsourcing companies have used the lottery system to submit many low-wage applications, hoping to win as many slots as possible. The wage-based system makes this much harder, since low-wage jobs will be less likely to get visas.
- Prioritizes Skills and Economic Contribution: By focusing on the highest-paid jobs, the system channels visas to highly skilled professionals who are likely to make a bigger impact on the U.S. economy.
- Improves Predictability: Employers and workers can better predict their chances of selection, since higher salaries strongly increase the odds of getting a visa.
- Encourages Wage Growth for Foreign Workers: Employers will need to offer higher pay to compete for H-1B slots, which benefits foreign professionals and may help raise wage standards in some industries.
- Supports U.S. Workforce Protections: By favoring higher-paid roles, the system aims to prevent the use of H-1B visas to undercut the wages of American workers.
Practical Implications for Stakeholders
For Employers
- Administrative Changes: Employers must now provide detailed wage information during the H-1B registration process. This could mean more paperwork and planning.
- Competitive Salaries: To improve their chances, employers may need to offer higher salaries, especially for jobs in high-demand fields.
- Impact on Hiring Strategies: Companies that have relied on hiring large numbers of entry-level or lower-paid foreign workers may need to rethink their approach.
For Foreign Workers
- Better Pay: The focus on higher H-1B salary offers could mean better pay for those who are selected.
- Job Choices: Workers may want to target jobs that offer higher wages or negotiate for better pay to increase their chances.
- Industry Differences: Some industries, like technology and finance, may see more H-1B approvals, while others with lower wage offers may see fewer.
For Outsourcing Companies
- Reduced Advantage: Outsourcing companies that have used the lottery to bring in many low-wage workers will find it harder to get visas approved.
- Need for Higher Wages: These companies may need to raise their wage offers or focus on more specialized, higher-paying roles.
For the U.S. Workforce
- Wage Protection: The system is designed to protect U.S. workers by making sure H-1B visas are not used to lower wages.
- Job Competition: American workers in high-skill, high-wage fields may see more competition from foreign professionals, but the overall impact should be positive for wage standards.
Implications for Pending Applications
If you have already registered or applied for an H-1B visa under the current lottery system, your application will be processed as usual until the new rule is officially adopted. If the wage-based system goes into effect, it will apply to future registration periods. It’s important to stay updated by checking the USCIS H-1B page for the latest news and instructions.
Recent Policy Changes and Announcements
- Electronic Registration: USCIS continues to use an electronic registration process for H-1B cap-subject petitions. This makes it easier for employers to submit applications and reduces paperwork.
- Annual Cap: The annual limit remains at 65,000 H-1B visas, with an extra 20,000 for people who have a master’s degree or higher from a U.S. school.
Key Stakeholders and Their Roles
- DHS and USCIS: These agencies are leading the effort to reform the H-1B selection process. They are responsible for writing the rules, collecting public comments, and announcing final decisions.
- Employers: Companies must adjust their hiring and salary practices to stay competitive under the new system.
- Foreign Workers: Professionals hoping to work in the United States 🇺🇸 should pay close attention to how their salary offers compare to others in their field.
- Outsourcing Companies: These firms will need to rethink their business models if they can no longer rely on large numbers of low-wage H-1B workers.
Why the Change?
The main reason for the shift to a wage-based system is to make sure the H-1B program brings the most economic value to the United States 🇺🇸. By focusing on higher salaries, the government hopes to:
- Attract the most skilled and valuable professionals
- Prevent abuse of the system by companies seeking cheap labor
- Protect American workers from wage depression
- Encourage employers to offer fair, competitive pay
What Should Employers Do Now?
- Review Salary Structures: Make sure your wage offers are competitive for your industry and location.
- Prepare for New Requirements: Get ready to provide detailed wage information for each H-1B candidate during registration.
- Monitor Official Announcements: Stay updated on when the new system will take effect by checking the USCIS H-1B page.
- Consult Legal Advisors: If you have questions about how the changes affect your business, talk to an immigration attorney or HR expert.
What Should Foreign Workers Do Now?
- Understand Wage Levels: Learn about the four wage levels and see where your job offer fits.
- Negotiate for Higher Pay: If possible, try to get a higher salary offer to improve your chances under the new system.
- Stay Informed: Follow updates from USCIS and DHS to know when the new rules will start.
What About Outsourcing Companies?
- Adjust Business Models: Companies that have relied on hiring large numbers of low-wage H-1B workers will need to change their approach.
- Focus on High-Skill Roles: Consider shifting to higher-paying, more specialized jobs that are more likely to win H-1B slots.
Potential Challenges and Criticisms
While many experts support the wage-based system for its focus on skills and fair pay, some groups have raised concerns:
- Small Businesses: Smaller companies may struggle to compete with large firms on salary, making it harder for them to hire foreign talent.
- Entry-Level Workers: Recent graduates and entry-level professionals may find it harder to get H-1B visas if their wage offers are lower.
- Industry Differences: Some industries, like education or non-profits, may not be able to offer high wages, which could limit their access to foreign talent.
Future Developments
The future of the H-1B program depends on the outcome of the proposed rule and any changes that follow. If the wage-based system is adopted, it could lead to a more competitive and economically focused allocation of visas. However, there may be legal challenges or pushback from groups that prefer the current lottery system.
As reported by VisaVerge.com, the wage-based H-1B system is designed to maximize the program’s economic benefit, raise foreign worker compensation, deter abuse by low-wage bulk applicants, and provide greater clarity for employers who invest in skilled international talent.
Where to Find More Information
For the latest updates and official guidance on the H-1B program and the proposed wage-based system, visit the USCIS H-1B Specialty Occupations page. This site provides detailed information on eligibility, forms, and the registration process.
Actionable Takeaways
- Employers: Review your salary offers and get ready for new registration requirements.
- Foreign Workers: Understand your wage level and try to secure higher-paying job offers.
- Pending Applicants: Your current application will be processed under the old rules until the new system is officially adopted.
- Stay Informed: Regularly check the USCIS website and trusted immigration news sources for updates.
By preparing now, both employers and foreign professionals can put themselves in the best position to succeed under the new Wage-Based H-1B System. This change is meant to reward skill, experience, and fair pay, helping the United States 🇺🇸 attract top global talent while protecting the interests of American workers.
Learn Today
H-1B visa → A U.S. visa for foreign skilled workers in specialty occupations requiring specialized knowledge.
Wage-Based H-1B System → A proposed selection method prioritizing H-1B applicants offering higher salaries for their jobs.
Outsourcing Companies → Firms that contract foreign workers, often submitting many low-wage H-1B applications.
Lottery System → Current random computer-based method selecting H-1B applicants when visas exceed demand.
Wage Levels → Government-defined salary categories from Level I (entry) to Level IV (highly specialized).
This Article in a Nutshell
The DHS plans to reform the H-1B visa program by prioritizing applicants with higher salary offers, replacing the random lottery with a wage-based system starting July 25, 2025. This aims to reward skill, increase wages, reduce abuse, and protect American workers while ensuring fair competition and economic value.
— By VisaVerge.com
