H1B Prevailing Wage Levels I, II, III, IV — What They Mean
A clear explanation of H1B wage levels, how they're determined, and what each level means for your salary negotiation.
1What Are Prevailing Wage Levels?
The Department of Labor defines four wage levels for every occupation in every geographic area. These levels reflect the experience and skill required for the position. Employers must assign the appropriate level when filing an LCA, and the offered salary must meet or exceed the prevailing wage for that level.
2Level I — Entry Level
Level I corresponds to the 17th percentile of wages for the occupation in the area. Workers at this level perform routine tasks, have limited experience, and work under close supervision. This is common for new graduates or those moving into a new field. Example: a junior software engineer with less than 2 years of experience.
3Level II — Qualified
Level II is the median wage (50th percentile) for the occupation. Workers have some experience and can perform duties with moderate supervision. This is the most common wage level in H1B filings, covering the majority of mid-level professional positions.
4Level III — Experienced
Level III is the 67th percentile, representing experienced workers who can handle complex tasks with minimal supervision and may train junior staff. Senior engineers, team leads, and specialists typically fall here.
5Level IV — Fully Competent
Level IV is the 95th percentile — top-of-market wages for the occupation. Workers at this level are experts who exercise independent judgment, often in leadership or principal roles. Tech companies and financial firms sponsoring senior engineers or quants at major tech hubs often file Level IV LCAs.
6How Levels Affect Your Salary Negotiations
If your employer files your LCA at Level I but the job duties match Level III, this is called a 'downgrading' and can be a red flag. It may indicate the employer is trying to pay below market rate. Understanding the wage level assigned to your LCA position helps you evaluate whether the offered salary is appropriate for your actual role.
Frequently Asked Questions
Who decides which wage level applies to me?
The employer assigns the wage level based on the job duties, required experience, and education. However, USCIS reviewers can challenge a level assignment if the job description suggests a higher level is warranted.
What if my salary is below the prevailing wage?
The LCA will be denied by DOL. The employer must either increase the offered salary to meet the prevailing wage or reclassify the position to a lower-level occupation with a lower prevailing wage. Workers should be wary of employers who significantly adjust the job title or duties to fit a lower wage level.