Donald Trump plays H1B staff wage card

The US government is planning to raise the minimum wage for foreign workers under the H-1B visa programme ahead of the presidential elections in November. The move could act as an impediment to on-shoring contracts and may push technology companies to consider hiring more local employees.

According to Reuters, the White House budget office is reviewing a regulation that would raise the wages that employers must pay to H-1B visa holders. The move is aimed at bringing parity in a programme that otherwise permits US employers to underpay H-1B workers compared to US workers.

At present, H-1B employees are hired at four levels (entry, qualified, experienced, fully competent or supervisory) based on their education and experience. The US labour department determines the wages based on prevailing rates for specific employee roles in different regions of the country.