Immigrant workers frequently earn more than their U.S. colleagues according to a recent analysis of H-1B visas. This complicates the debate over whether the visa program suppresses U.S. wages. The research from global HR firm Deel indicates companies use the program not to cut costs, but to secure specialized talent in high-demand fields like software engineering and AI, where domestic talent is scarce.
H-1B Visa Holder Wages vs. U.S. Worker Wages
Deel’s analysis, based on immigrants using their platform, supports diverse research findings. Some economic analyses suggest H‑1B workers earn less than U.S. workers after considering job type and location. However, Deel’s report, released on June 2, shows visa holders consistently earn more than local workers.
In the U.S., H‑1B workers on Deel’s platform earn a median salary of $140,000, compared to about $130,000 for American workers in similar roles. Immigrant workers are also typically younger, averaging about five years less in age compared to their U.S. peers, entering high-paying roles earlier in their careers.
At top venture-backed U.S. startups, foreign workers earn a median salary of $260,000, approximately $100,000 more than their American counterparts, driven by a concentration in highly specialized AI and technical roles. Lauren Thomas, an economist at Deel, explains this large pay gap is because such roles are hard to fill with American talent due to their specificity.
Other research previously covered by Newsweek highlights H‑1B workers could earn around 16% less than U.S. workers after adjusting for key factors showcasing that wage comparisons vary based on methodology. Thomas asserts bringing in an immigrant worker is challenging, and the selective U.S. immigration system yields selective results such as these.
Comparing to High-Skilled Visas Globally
The analysis considers high-skilled workers globally, revealing companies hire foreigners not to save money, but to obtain desired talent, often paying a premium. In the U.K., although wages are generally lower than in the U.S., Skilled Worker visa holders earn an average of £96,000 compared to British citizens’ £87,000. A similar pattern exists in the United Arab Emirates.
Deel notes immigrants frequently work in engineering and tech while roles requiring local expertise, like sales and creative positions, are often held by local citizens. Kevin Lynn, executive director of the Institute for Sound Public Policy, points out that the analysis lacks reliability. USICS data, alongside Economic Policy Institute analyses, traditionally show many H-1B jobs certified at lower wage levels, prompting wage suppression concerns. The study overlooks publicized cases of Americans training H-1B replacements before layoffs.
Judge Rules $100K H-1B Visa Fee Unlawful
The wage debate emerges as a federal court overturns a contentious $100,000 fee on H‑1B visa applications implemented by the Trump administration. U.S. District Judge Leo Sorokin determined the fee functioned as a tax unauthorized without congressional approval.
Introduced in 2025, the policy significantly increased the cost of hiring foreign workers, aiming to protect American jobs. Critics argue it risks deterring high-skilled talent and damaging industries dependent on international workers. The ruling will impact employers immediately, many of whom warned the fee would limit recruitment and reduce competitiveness.
Who Is Eligible for H-1B Visa?
The H‑1B visa targets foreign professionals in “specialty occupations,” requiring a bachelor’s degree or equivalent experience in a highly skilled field. Roles include software developers, engineers, healthcare workers, and financial analysts. Employers must sponsor applicants and prove the need for specialized knowledge not easily filled domestically.
The program is highly competitive, with 85,000 new visas available annually, though likely higher with renewals. H‑1B visas usually begin with an initial period of up to three years, extendable for another three, totaling a standard stay of six years.
Additional extensions may be possible for workers pursuing permanent residency, enabling them to stay in the U.S. beyond the six-year limit while awaiting application processing.
Leave a Reply