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Prevailing wage

H-1B Prevailing Wage Levels I–IV, Explained

H-1B prevailing wage levels decide both what an employer must pay you and — from 2027 — how many lottery entries you get. Here's what the four levels mean and how they're set.

Updated July 2026 · SponsorScan · from official USCIS & DOL data

What a prevailing wage is

The prevailing wage is the baseline the Department of Labor requires an employer to pay an H-1B worker: at least the going rate for that occupation in that area. It protects both the worker and the local labor market. DOL publishes it as four levels for each occupation and location.

The four levels

LevelRoughlyTypical profile
Level IEntryNew grads, interns, basic tasks under supervision
Level IIQualifiedSome experience, moderate independence
Level IIIExperiencedSolid independent contributors, harder judgment
Level IVFully competentSenior, lead, or specialized expertise

How the levels are computed

DOL derives the levels from the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) survey. In practice, Level I sits near the 17th wage percentile for the occupation and area, and Level IV near the 67th; Levels II and III split the gap. Because it's percentile-based, the dollar figure for the same level differs from metro to metro.

Why the same salary changes level by city
  • Levels are relative to local pay for your specific occupation, not a national number.
  • $120K can be Level IV in one metro and Level II in a high-cost one.
  • This is exactly why the 2027 wage-weighted lottery makes location part of your odds.

Why it matters now

Prevailing wage always mattered for what you'd be paid. From the FY2027 cycle it also drives your lottery odds: higher levels earn more selection entries. To see the exact Level I–IV thresholds for your role in any U.S. county — and which level your salary reaches — use the interactive wage-level map.

SponsorScan's levels are estimates of DOL's thresholds computed from public BLS OEWS data; a specific case also depends on the job's exact duties and requirements. Not legal advice.

Frequently asked questions

What are the four H-1B wage levels?

Level I (entry), Level II (qualified), Level III (experienced), and Level IV (fully competent), defined by DOL for each occupation and area.

How is the H-1B prevailing wage calculated?

From BLS OEWS survey data: Level I is near the 17th percentile of local wages for the occupation, Level IV near the 67th, with II and III between.

Why is my salary a different level in another city?

Levels are relative to local pay for your occupation. The same dollar amount can be a higher level in a lower-cost metro.

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