Immigrant Workers’ Salaries Exceed American Counterparts in Tech Fields, Analysis Shows

Recent analysis of H-1B visas reveals that immigrant workers often earn more than American workers in similar roles. This complicates the debate over whether the visa program undercuts U.S. wages. The findings, from global HR firm Deel, indicate that companies prioritize the visa program to secure specialized talent in high-demand fields like software engineering and artificial intelligence, rather than to reduce costs. Domestic supply in these fields remains limited.

The data, centered on immigrants utilizing Deel’s platform, adds to the ongoing debate about the program. Some research indicates that when adjusted for factors like job type and location, H-1B workers might earn less than U.S. workers. Such findings are frequently cited by lawmakers and advocates seeking visa reform.

H-1B Visa Holder Wages vs. U.S. Worker Wages

Deel’s analysis, released on June 2, showed that visa holders consistently earn more than local workers across major global markets. In the U.S., H-1B workers on Deel’s platform have a median salary of $140,000, compared to $130,000 for American workers in equivalent roles. Immigrant workers are also younger, on average around five years younger than their American peers. This suggests they enter high-paying positions earlier in their careers.

At the highest levels of the job market, the disparity becomes more significant. In top venture-backed U.S. startups, foreign workers earn a median salary of $260,000. This is approximately $100,000 more than their American counterparts. This gap is largely due to a concentration of roles in AI and other technical fields. “We can see a significant gap in the median pay for non-U.S. citizens at these leading startups,” Lauren Thomas, an economist at Deel, explained to Newsweek. “Many hold specific, highly-paid roles that are challenging to fill with American talent.”

Contrary to Deel’s analysis, other research cited in Newsweek has shown that H-1B workers could earn roughly 16 percent less than American workers once factors are adjusted. Methodology variations can lead to differing wage comparisons, illustrating the complexity of the issue.

“Bringing in an immigrant worker is not easy,” Thomas stated. “The U.S. has a selective immigration system, so selective results like these might be expected.”

Comparing to High-Skilled Visas Globally

The analysis also considered high-skilled workers worldwide, not just in the U.S. It demonstrated that businesses are not primarily hiring foreign workers to cut costs. Instead, they invest in the talent needed, often paying a premium.

In the U.K., though wages are lower than in the U.S., Skilled Worker visa holders earn an average of £96,000 compared to £87,000 for British citizens. A similar pattern appears in the United Arab Emirates.

Deel highlighted that immigrants often work in engineering and tech roles, whereas jobs requiring local knowledge, like sales and creative positions, are typically held by citizens.

Kevin Lynn, from the Institute for Sound Public Policy and U.S. Tech Workers, expressed skepticism about the analysis. “USCIS data and Economic Policy Institute analyses show many H-1B jobs are certified at lower wage levels,” Lynn said. “This fuels wage suppression concerns.” He cited instances where Americans were required to train their H-1B replacements before layoffs, continuing the debate on job displacement and labor costs.

“Highlighting a narrow group of top earners doesn’t address broader concerns about displacement, labor costs, and the lack of investment in America’s talent pipeline,” Lynn noted.

Judge Rules $100K H-1B Visa Fee Unlawful

This wage debate occurs as a court overturned a contentious $100,000 fee on H-1B visa applications imposed during the Trump administration. U.S. District Judge Leo Sorokin declared the fee an unauthorized tax, lacking congressional approval.

Introduced in 2025, the policy significantly increased foreign worker hiring costs, positioned as job protection. Critics warned of potential deterrence of high-skilled talent and industry impacts.

The ruling has immediate implications for employers who feared the fee’s impact on recruitment and competitiveness.

Who Is Eligible for an H-1B Visa?

The H-1B visa targets foreign professionals in “specialty occupations,” typically requiring at least a bachelor’s degree or equivalent experience. Common roles include software developers, engineers, healthcare professionals, and financial analysts. Employers must sponsor applicants, proving the roles need specialized knowledge unavailable domestically.

The program is competitive, with 85,000 new visas available annually, though total approvals are higher considering renewals.

How Long Can You Stay in the U.S. on an H-1B?

H-1B visas are typically valid for up to three years. They can be extended, usually for another three years, allowing a total stay of six years. Some pursuing permanent residency may get additional extensions, letting them remain in the U.S. while applications process.