Switzerland Joins Luxembourg, Portugal, UK, Italy, Spain, Sweden, And More Countries In Europe As US Moves To Raise Prevailing Wage Levels And Tighten H-1B And PERM Visa Requirements

Published on
March 29, 2026

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Switzerland, along with Luxembourg, Portugal, the UK, Italy, Spain, Sweden, and several other European countries, is set to face significant changes as the U.S. tightens its visa and wage rules for foreign workers. The U.S. Department of Labor’s proposed rule to raise prevailing wage levels for H-1B, H-1B1, E-3, and PERM visa categories is aimed at aligning foreign workers’ salaries with those of U.S. counterparts in similar roles, thereby reducing the wage disparity and ensuring fairer labor conditions. This move will impact thousands of European professionals in industries like tech, healthcare, and engineering, as employers are forced to adjust their compensation structures and consider higher wage offerings to meet the new requirements.

The U.S. Department of Labor’s proposed rule to increase prevailing wage levels for foreign workers has sent ripples through the global community. As part of the push to adjust wage floors for skilled foreign workers on H‑1B, H‑1B1, E‑3, and PERM green card visa categories, countries across Europe are gearing up for significant changes. With European professionals traditionally playing a key role in sectors like technology, healthcare, and engineering in the U.S., this policy shift will directly impact workers from countries like Switzerland, Luxembourg, Portugal, the UK, Italy, Spain, Sweden, and many more.

In this article, we will explore the full scope of the proposed changes, their implications for foreign workers, and how these updates will affect European nationals seeking opportunities in the U.S. Let’s dive into the key aspects of the Department of Labor’s plan and how countries across Europe are preparing for this pivotal moment.

A Major Change for H-1B, H-1B1, E-3, and PERM Visa Holders

On March 27, 2026, the U.S. Department of Labor unveiled a Notice of Proposed Rulemaking titled Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States. The proposed rule seeks to raise the prevailing wage levels for foreign workers in the H-1B, H-1B1, E-3, and PERM (green card) visa categories. As part of the ongoing effort to enhance labor market fairness, the Department of Labor is raising the required wages to better align with the salaries of U.S. workers in comparable roles.

Since 2005, the wage levels for foreign workers have been based on the 17th, 34th, 50th, and 67th percentiles of the Occupational Employment and Wage Statistics (OEWS) wage distribution. However, this system has long been criticized for allowing employers to offer wages below what is typical for U.S. workers in similar positions.

The newly proposed rule aims to adjust the wage structure by increasing the required wages in each of the four tiers, with the objective of preventing employers from hiring foreign workers at lower wages than U.S. workers with similar qualifications.

How Wage Levels Are Set to Change

The core of the proposed changes lies in the four-tier wage system that is used to determine what employers must pay foreign workers. The prevailing wage is designed to reflect the pay scale of U.S. workers performing the same or similar job roles in a given geographic area.

Here is a breakdown of the changes:

• Wage Level I (Entry Level): Current percentiles are set at the 17th percentile of the wage distribution for a given role. Under the new rule, this would rise to the 34th percentile, leading to an increase of 33.39% in the wage floor.
• Wage Level II (Qualified): Currently, this wage level is set at the 34th percentile of the wage distribution. Under the new rule, this would rise to the 52nd percentile, resulting in a 12% increase in wages.
• Wage Level III (Experienced): The current wage level is at the 50th percentile, which will rise to the 70th percentile, reflecting a 20.79% increase.
• Wage Level IV (Highly Experienced): This wage level currently sits at the 67th percentile, and the proposed change would elevate it to the 88th percentile, resulting in a 7.77% increase.

For example, a job currently paying $80,000 at the 17th percentile would need to offer between $95,000 and $105,000 or more under the new wage floor requirements.

What Does This Mean for European Nationals?

For European nationals working or planning to work in the U.S., the ramifications of these changes are significant. The H-1B, H-1B1, E-3, and PERM visa categories are common pathways for skilled foreign workers from Europe seeking employment in the U.S. The H-1B visa, for instance, is widely used by professionals in engineering, IT, and healthcare, while the PERM process applies to those seeking permanent residency in the U.S.

Workers from countries across Europe will need to adjust to the increased wage thresholds set by the Department of Labor if they are applying for U.S. employment or residency. The impact will vary based on experience levels and employment sectors, but all workers on these visa tracks will face higher wage expectations.

For instance, entry-level workers will see the largest percentage increase in wage requirements at 33.39%, which will increase the cost for employers looking to hire skilled foreign nationals. More experienced workers may face more moderate increases in wages, but the gap between new prevailing wages and offered wages will narrow at higher levels, as the proposed changes aim to ensure better wage parity with U.S. workers.

Countries in Europe That Will Be Affected

This new proposal affects workers from all European countries seeking to work or reside in the U.S. through these visa programs. Here are the key European nations impacted:

Western Europe

• Switzerland
• Luxembourg
• Ireland
• Netherlands
• Belgium
• France
• Germany
• Austria

Southern Europe

• Italy
• Spain
• Portugal
• Greece
• Cyprus

Northern Europe

• Sweden
• Norway
• Denmark
• Finland
• Iceland

Eastern Europe

• Poland
• Czech Republic
• Hungary
• Romania
• Bulgaria

Each of these countries will be affected if their citizens are applying for U.S. visas under the H-1B or PERM categories. As part of the proposal, the U.S. Department of Labor has emphasized the importance of aligning foreign wages with those of U.S. workers in similar roles. The adjustments are meant to create more fair and equitable labor conditions across industries.

For countries like Germany, France, and Italy, which have a long history of sending skilled professionals to the U.S. for work, these changes will force employers to reconsider their wage structures. For tech workers, engineers, healthcare professionals, and others, the new wage levels will translate to higher salaries or could make it more difficult for employers to sponsor foreign talent.

Why Is This Change Necessary?

The U.S. Department of Labor explained that the existing wage system, which has been in place for over two decades, does not adequately reflect the actual wages paid to U.S. workers in similar roles. The proposed changes are aimed at reducing the potential exploitation of foreign workers by ensuring they are paid similarly to their U.S. counterparts. The changes are also seen as part of broader efforts to protect American workers from being undercut by foreign workers earning lower wages.

The wage increase is especially significant for industries like information technology and engineering, where foreign workers often make up a substantial portion of the workforce. The new wage rules will make it more expensive for employers to hire foreign workers at entry-level wages, forcing them to offer salaries that align with local wage expectations.

Additionally, the wage hikes reflect a growing trend to align U.S. labor standards with the global wage landscape, ensuring U.S. workers are not displaced by cheaper foreign labor.

What Happens Next?

The Department of Labor’s proposal is still in the public comment phase, which will last for 60 days from the date of publication. The final rule will be released after the Department of Labor reviews the public feedback, which could take several months. The rule would not take effect immediately after the comment period; employers and visa applicants will need to stay informed about the final implementation timeline.

As these changes will affect a wide range of sectors in the U.S., including technology, finance, and healthcare, it is crucial for both employers and foreign workers to understand the implications of these proposed wage increases. As the situation evolves, professionals and businesses alike should consult with immigration lawyers and experts to adjust their strategies for hiring foreign talent under the new framework.

The U.S. Department of Labor’s proposed adjustments to visa wages will have far-reaching consequences for workers from Switzerland, Luxembourg, Portugal, UK, Italy, Spain, Sweden, and other European nations. These changes reflect the growing concern over ensuring fair labor standards and protecting American workers from unfair competition in the global job market. As the comment period draws to a close, these changes could mark a pivotal moment in U.S. immigration policy and foreign labor market dynamics.

Switzerland, along with Luxembourg, Portugal, the UK, Italy, Spain, Sweden, and other European countries, is set to face significant changes as the U.S. tightens its visa and wage rules to ensure foreign workers are paid more in line with U.S. counterparts, reducing wage disparity and protecting local labor markets.

Employers must adapt to the new wage requirements, while foreign workers need to carefully assess how these changes will affect their opportunities for U.S. employment. For European workers, these updates represent a new reality in their pursuit of career growth in the U.S., where salaries will be raised, but also the barriers to entry for foreign workers may increase.