PERM prevailing wage is fixed — it does not automatically rise with inflation
Key Takeaways
- The prevailing wage set in a PERM (DOL labor certification) is fixed at the time of the determination.
- Employers must pay at least that wage when the employee receives the green card; the wage does not automatically increase for inflation.
- Employers remain free to pay more voluntarily; USCIS (U.S. Citizenship and Immigration Services) and the Department of Labor will enforce the requirement to meet the stated wage, not to escalate it.
- This affects employment-based immigrant categories that use PERM (commonly EB-2 and EB-3) and matters when there are multi-year processing delays.
- It has been reported that Sheela Murthy and other senior attorneys clarified this point in guidance published by Murthy Law Firm.
Background: what is a PERM prevailing wage?
PERM (Program Electronic Review Management) is the Department of Labor’s labor‑certification process employers use to sponsor foreign workers for most employment‑based green cards (typically EB‑2 and EB‑3). As part of that process the DOL issues a prevailing wage determination: a dollar amount that the employer must offer and later pay the foreign worker. The prevailing wage is tied to the original PERM determination and does not contain an automatic inflation adjustment mechanism.
What the rule means in practice
When the worker ultimately becomes a lawful permanent resident, the employer must pay at least the wage listed in the certified PERM. That obligation survives long PERM and USCIS processing times. It does not, however, mean the employer must raise the wage year‑by‑year to reflect inflation or cost of living increases unless the employer independently chooses to do so. Employers also must demonstrate ability to pay the proffered wage (for example, on the I‑140 petition) from the priority date forward; that is a separate USCIS review focused on the employer’s finances.
Human impact and practical advice
For applicants this can be consequential. Long backlogs and inflation can erode the real purchasing power of the proffered wage over several years. In practice, some employers voluntarily increase pay or adjust compensation through raises, promotions, or market‑based changes; others do not. If you are an employee or sponsor, confirm the employer’s long‑term commitment to the wage in writing and discuss contingencies with an immigration lawyer. For specific situations — such as job changes, amended offers, or questions about an employer’s ability to pay — legal advice tailored to the case is recommended.
Source: Original Article