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How H-1B Prevailing Wage Levels Are Determined: The 2026 Guide

OEWS data, SOC codes, MSA-based calculations, why the same job has different wage levels in different cities, and how to use this for FY2027 lottery strategy

Understanding how prevailing wage levels are determined is essential for H-1B workers in 2026 — especially with the wage-weighted lottery making wage levels directly impact your selection odds. The system is more mechanical than most people realize: it's driven by Bureau of Labor Statistics data, SOC occupation codes, and geographic area. Here's how it actually works.

Quick Answer: Prevailing wages are calculated from BLS Occupational Employment and Wage Statistics (OEWS) data, organized by SOC code and Metropolitan Statistical Area (MSA). Level 1 = 17th percentile, Level 2 = 34th percentile (median of bottom third), Level 3 = 50th percentile (median), Level 4 = 67th percentile. The same job title can fall in different wage levels depending on the city because wage distributions vary dramatically by location.

How Wage Levels Are Calculated: The Four Tiers

Wage LevelPercentileInterpretationSW Engineer (SF)SW Engineer (Dallas)
Level 1 (Entry)17thEntry-level, close supervision~$120,000~$85,000
Level 2 (Qualified)34thQualified, limited judgment~$145,000~$105,000
Level 3 (Experienced)50thExperienced, independent judgment~$172,000~$125,000
Level 4 (Fully Competent)67thFully competent, special expertise~$198,000~$145,000

Visa Insights: The Mechanics Behind Prevailing Wage Determination

The prevailing wage system starts with two inputs: (1) the Standard Occupational Classification (SOC) code for the position, and (2) the Metropolitan Statistical Area (MSA) where the work will be performed. Using these, the DOL looks up the wage distribution from the Bureau of Labor Statistics' OEWS survey and calculates four levels based on percentile breakpoints.

This is why the same job title can fall into different wage levels in different cities. A software engineer earning $130,000 in San Francisco is at Level 1 (17th percentile for that MSA), while the same $130,000 salary in Dallas would be Level 3 (50th percentile). For the wage-weighted lottery, this means a Dallas-based position at $130,000 has BETTER lottery odds than a San Francisco position at the same salary — because it maps to a higher wage level.

The SOC code assignment is equally critical. The same person could be classified as a "Software Developer" (15-1252) or a "Computer Systems Analyst" (15-1211), and the wage distributions are different. Employers and attorneys choose SOC codes based on the actual job duties, but there's often legitimate flexibility in classification. A strategic SOC code assignment — always within what the duties genuinely support — can place the position in a higher wage level.

Real PWD Examples Showing Geographic Variation

  • Software Developer (SOC 15-1252) — Offered $140,000. In San Francisco MSA: Level 2. In Austin MSA: Level 3. In Pittsburgh MSA: Level 4. Same salary, three different lottery odds.
  • Data Scientist (SOC 15-2051) — Offered $155,000. In New York MSA: Level 2. In Chicago MSA: Level 3. In Raleigh MSA: Level 4.
  • Financial Analyst (SOC 13-2051) — Offered $110,000. In San Francisco MSA: Level 2. In Dallas MSA: Level 3. In Columbus MSA: Level 4.

Related Job Titles and Their SOC Code Classifications

  • Software Developer (15-1252) / Computer Systems Analyst (15-1211)
  • Data Scientist (15-2051) / Statistician (15-2041)
  • Financial Analyst (13-2051) / Management Analyst (13-1111)
  • Mechanical Engineer (17-2141) / Industrial Engineer (17-2112)
  • Computer Network Architect (15-1241) / Network Engineer (15-1244)
  • Database Administrator (15-1242) / Data Engineer (15-1243)

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Frequently Asked Questions

Can I request my employer to file at a higher wage level to improve my lottery odds?

The wage level must accurately reflect the position's requirements and the offered salary. Your employer cannot simply 'choose' a higher level — the LCA wage level is determined by the actual salary relative to the prevailing wage distribution for the SOC code and work location. However, you can negotiate a higher salary, which may naturally place you in a higher wage level. You can also discuss with your attorney whether a different (but legitimate) SOC code classification would result in a higher level.

Why does the same $130,000 salary map to Level 1 in San Francisco but Level 3 in Dallas?

Because prevailing wages are calculated from local wage distributions. San Francisco has much higher wages for tech workers — $130,000 is at the 17th percentile (Level 1) there. In Dallas, where tech wages are lower, $130,000 is at the 50th percentile (Level 3). This is why geographic location dramatically affects your wage level classification and, under the new lottery, your selection odds.

Can my employer choose a work location strategically to get a higher wage level?

The work location on the LCA must be where the work will actually be performed. Filing a Dallas LCA for work actually performed in San Francisco is fraud. However, if you genuinely work remotely and the employer has offices in multiple locations, there may be legitimate flexibility in which location is designated. This must be discussed with an immigration attorney — the work location must be truthful.

How do I look up the prevailing wage for my SOC code and city?

Use the DOL Foreign Labor Certification Data Center's Online Wage Library at flcdatacenter.com. Enter the SOC code (e.g., 15-1252 for Software Developers), select the MSA/area, and it shows all four wage levels. You can also use the H-1B LCA disclosure data on Wisa to see what wage levels other employers are filing at for similar positions in your area.

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