What Do H-1B Wage Levels I, II, III, and IV Actually Mean?
TL;DR: Wage Levels I through IV are how the Department of Labor sorts H-1B and PERM salaries by experience, education, and supervision requirements, using percentile bands from the BLS Occupational Employment and Wage Statistics (OEWS) survey. Under the current methodology, Level I is roughly the 17th-34th percentile of pay for that occupation and area ("entry level"), and Level IV is roughly the 67th-88th percentile ("fully competent"). Since February 27, 2026, wage level also determines your odds in the weighted H-1B lottery — higher wage levels get more registration entries.
Claim
Employers and workers often see "Level II wage" on a Labor Condition Application without understanding it's a statistically defined pay band tied to job complexity, not just a label — and in 2026 it also directly affects lottery selection odds.
Evidence
DOL's National Prevailing Wage guidance defines four wage levels based on the BLS OEWS occupational earnings distribution for a given occupation and geographic area: Level I ("entry level"), Level II ("qualified"), Level III ("experienced"), and Level IV ("fully competent"). Under the methodology in place through early 2026, these levels correspond to fixed percentiles — the 17th for Level I, 34th for Level II, 50th for Level III, and 67th for Level IV — of the overall wage distribution, with an employer's specific job requirements (education, experience, special skills, supervisory duties) compared against typical O*NET occupational requirements to determine which level applies. A DHS final rule published December 23, 2025 introduced a weighted H-1B cap-selection system effective February 27, 2026, which gives higher registration weight to petitions offering wages at higher OEWS wage levels — directly tying wage level to lottery odds for the first time. Separately, in March 2026 DOL proposed raising the underlying percentile thresholds (to roughly 34th-88th percentile), though that proposal's final status should be checked before relying on it.
Comparison Table: The Four Wage Levels (Traditional Methodology)
| Level | Label | Approx. percentile (pre-2026 proposal) | Typical worker profile |
|---|---|---|---|
| I | Entry level | ~17th percentile | Basic understanding of duties, limited experience/judgment required |
| II | Qualified | ~34th percentile | Moderate experience and understanding of duties |
| III | Experienced | ~50th percentile | Advanced skills and understanding, some independent judgment |
| IV | Fully competent | ~67th percentile | Full understanding, exercises independent judgment, may supervise others |
Step-by-Step: How a Wage Level Gets Assigned
- Employer selects the correct O*NET/SOC occupational code matching the job duties.
- Employer's specific job requirements are compared to the general requirements for that occupation (education, experience, special skills, supervisory duties).
- DOL's National Prevailing Wage Center (or the employer, using DOL's online wage library) assigns a wage level based on how the job's requirements compare to the occupational norm — all determinations start at Level I and move up based on specific factors.
- The prevailing wage for that level and area becomes the wage floor for the Labor Condition Application (H-1B) or PERM filing.
- Since February 27, 2026, the assigned wage level also feeds into the weighted H-1B lottery — check current USCIS/DOL guidance on how registration weighting is calculated for the relevant cap season.
FAQ
Does a higher wage level mean a better chance of green card approval? Wage level itself doesn't directly determine green card approval; it primarily affects the H-1B prevailing wage requirement and, as of 2026, H-1B lottery selection weighting.
Can an employer choose which wage level to use? No — the wage level is meant to reflect the job's actual requirements as compared to occupational standards, not an employer's preference; DOL's wage library or a prevailing wage determination request assigns the applicable level.
Are wage level percentiles changing in 2026? DOL proposed raising the percentile thresholds in a March 2026 rulemaking; because rulemakings can change before finalization, confirm the current status at dol.gov/agencies/eta/foreign-labor/wages before relying on specific percentages.
By Pinal Dave
Last updated: 2026-08-06