If you sponsor foreign tech talent in the US, today is the day to read the H-1B prevailing wage proposal. The Department of Labor’s comment window closes on May 26. Specifically, the Level I wage floor jumps from the 17th to the 34th percentile of local pay. Meanwhile, the UK’s new Fair Work Agency is now active. In addition, Singapore’s COMPASS rewrite hits Employment Pass renewals from July. Germany’s minimum wage already moved to €13.90 in January. This week’s digest breaks down what the H-1B prevailing wage rule means for small sponsors. Three more compliance shifts you should action this month follow.

H-1B Prevailing Wage Rule Triggers a Cost Spike for US Sponsors

On March 26, the US Department of Labor issued a notice of proposed rulemaking. The rule resets how wages are calculated under the H-1B, H-1B1, E-3, and PERM programs (DOL press release). The Federal Register published the proposal on March 27. Therefore, a 60-day comment window opened that closes at 11:59 PM ET on May 26 (Federal Register). Specifically, the rule lifts Wage Level I from the 17th to the 34th percentile of the BLS OEWS survey. Levels II, III, and IV move to the 52nd, 70th, and 88th percentiles.

What the H-1B Prevailing Wage Numbers Look Like

The DOL’s own analysis estimates the average certified wage will rise by about $14,000 per worker per year. Aggregate employer cost climbs by roughly $6.6 billion annually at first. Moreover, costs approach $9.3 billion by Year 6 once the rule reaches full effect (Holland & Knight analysis). For example, entry-level Level I positions see the steepest jump. The 17-point percentile shift compounds across geographies. As a result, smaller employers who run lean H-1B programs face the biggest squeeze. The DOL estimates up to 18% of small sponsors absorb cost increases above 3% of total revenue. In particular, custom computer programming services hit 49% of small employers above that line (Boundless analysis).

Action Steps Before the H-1B Prevailing Wage Comment Window Closes

First, model your existing H-1B and PERM cases at the new percentiles. If a Level I role currently certified at $85,000 jumps to $99,000, your Q3 hiring budget needs that today. Second, file a comment on Docket ETA-2026-0001 at regulations.gov before May 26. The DOL must respond to substantive comments. Specifically, small-employer impact data tends to move the final percentile thresholds. Third, brief your immigration counsel about timing. For instance, in-flight LCAs may be grandfathered. However, new filings after the effective date will use the higher wages. Then compare the H-1B prevailing wage hit against opening a Canadian or UK entity for the same role. Asanify’s US payroll and EOR service models the loaded cost across both options.

UK Fair Work Agency Goes Live: One Regulator, Sharper Teeth

The Fair Work Agency formally launched on April 7, 2026. It now sits as an executive agency under the Department for Business and Trade (UK Government). The agency absorbs the Employment Agency Standards Inspectorate. In addition, it takes over the Gangmasters and Labour Abuse Authority. As a result, it becomes the single state body for labour market enforcement. However, HMRC keeps National Minimum Wage enforcement until April 2027. After that, the Fair Work Agency takes that function too (RSM UK briefing).

Crucially, the agency can bring tribunal claims on behalf of workers. It can act even when the worker chooses not to sue. Moreover, it can recover its enforcement costs from non-compliant employers. It can also publicly name them. For example, the new Statutory Sick Pay regime took effect on April 6. Specifically, the rules removed the waiting day and the Lower Earnings Limit floor. SSP now pays 80% of average weekly earnings or the flat rate. The penalty for SSP underpayment is 200% of the underpaid amount. Penalties cap at £20,000 per worker, with six years of back liability (VWV legal briefing). Therefore, if you employ even one UK worker, the cost of getting payroll wrong just rose. Review your UK employment law obligations this week.

Singapore Tightens COMPASS for Employment Pass Renewals from July

From July 1, 2026, Singapore’s Ministry of Manpower applies the updated COMPASS framework to all Employment Pass renewals. The rollout began on January 1 for new applications (KPMG GMS Flash Alert). The minimum fixed monthly salary stays at S$5,600 for general roles. Financial services roles need S$6,200. However, age-adjusted benchmarks scale higher. Specifically, mid-40s benchmarks rise to roughly S$10,700 to S$11,800. In addition, any qualification used to score points under the C2 attribute must now be verified by an MOM-approved screening firm. The verification must complete before submission. The Shortage Occupation List has new entries. Sector-specific salary benchmarks were also refreshed in March (MOM Employment Pass eligibility).

For instance, if you renew an EP for a senior engineer this summer, budget two to three extra weeks for verification. For deeper detail, see Asanify’s Singapore work permit guide. The Singapore hiring playbook also covers the COMPASS scoring breakdown.

Germany’s New Mindestlohn Hits Mini-Jobs and Distributed Teams

Germany’s statutory minimum wage rose from €12.82 to €13.90 per hour on January 1, 2026. The Federal Ministry of Labour confirmed the 8.42% increase last December (BMAS press release). About 6.6 million employment contracts adjust automatically. The mini-job earnings ceiling is pegged to the minimum wage. As a result, the cap climbs to roughly €603 per month in 2026 and €633 in 2027 (IamExpat analysis on Minijob 2026).

If you run any mini-job or part-time arrangement in Germany, your hourly rates need an update today. The monthly cap also needs an HRIS refresh. Otherwise you risk back-pay claims plus late-payment interest. Asanify’s Germany payroll service already runs at the new floor.

Quick Hits

• California AB5 trucking enforcement. The state Labor Commissioner cited three trucking companies for misclassifying drivers under AB5. Combined assessments and interest total about $868,000 (FreightWaves). Crucially, it is the first major AB5 trucking enforcement.
• EU Pay Transparency deadline 34 days away. Member states must transpose Directive 2023/970 by June 7. The Commission reaffirmed the date in December (Ogletree update). Therefore, lock in your pay-band structure before month-end.
• USCIS H-2B late-season visas. 18,490 H-2B visas are available for start dates from May 1 to September 30 (USCIS). Specifically useful for seasonal hospitality, landscaping, or construction.

Action Items This Week

If you sponsor H-1B, H-1B1, E-3, or PERM in the US: First, re-cost your active and pipeline filings at the proposed Level I-IV percentiles by Friday. Second, file a comment on Docket ETA-2026-0001 before May 26 if the impact is material. The H-1B prevailing wage shift is the single biggest sponsor-cost change in two decades.

If you employ in the UK: Audit Statutory Sick Pay calculations against the April 6 rules. Then brief managers that the Fair Work Agency can pursue tribunal claims directly. Moreover, it can recover enforcement costs from you.

If you renew Employment Passes in Singapore between July and December: First, submit qualification verification through an MOM-approved screening firm now. Second, confirm sector-specific salary benchmarks against the COMPASS C1 update.

If you run mini-jobs or hourly contracts in Germany: Update HRIS hourly rates to €13.90 today. The monthly mini-job ceiling is now €603. Then pull a back-payment audit from January 1 to confirm no underpayments slipped through.

If juggling four jurisdictions on a single Monday morning sounds tiring, that is exactly what distributed compliance feels like in 2026. Asanify’s global employer-of-record service handles country-level payroll, statutory benefits, and tax filings across 150+ countries. As a result, the H-1B prevailing wage rule becomes one line item to model rather than a full project. Worth a look if your team hires across two or more countries.

FAQ

Q: When does the H-1B prevailing wage comment window close?

The Department of Labor accepts comments on Docket ETA-2026-0001 at regulations.gov until May 26, 2026 at 11:59 PM ET. Specifically, substantive comments from small sponsors can move the final percentile thresholds.

Q: How much will H-1B sponsorship cost rise if the rule finalises as drafted?

The DOL estimates an average increase of about $14,000 per worker per year. Aggregate cost across all sponsors is roughly $6.6 billion annually in Year 1. Moreover, the cost rises to about $9.3 billion at full effect.

Q: Does the UK Fair Work Agency replace HMRC for minimum wage cases?

Not yet. HMRC continues to enforce the National Minimum Wage during the 2026-2027 transition year. The Fair Work Agency takes over that function in April 2027. Until then, both regulators can act.

Q: Do existing Singapore Employment Pass holders need new qualification verification?

Yes, on renewal. From July 1, 2026, any qualification used to score COMPASS C2 points must be verified by an MOM-approved screening firm. Specifically, plan for two to three extra weeks of processing time.

Q: What is the new German minimum wage and when did it take effect?

The statutory Mindestlohn rose from €12.82 to €13.90 per hour on January 1, 2026. As a result, the mini-job monthly earnings ceiling is now around €603. Both numbers move again on January 1, 2027 to €14.60 and €633.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.