Look up H-1B prevailing wages by job title, location, and wage level. Check LCA compliance and compare your offered salary against DOL requirements for 2025.
Auto-updated · Verified daily against IRS, Fed & Treasury sources
Enter your numbers below
Based on your inputs
Level 1 — Software Developers
| Offered Salary | $120,000 |
|---|---|
| Prevailing Wage (Level 1) | $95,000 |
| Difference | +$25,000 |
All Wage Levels — Software Developers (CA)
Money Score: Analyze 3 calcs across rent, debt, and savings to unlock.
Analyze 3 calcs to unlock
0 of 3 analyzed
Analyze 3+ calcs to unlock your Financial Picture dashboard (cross-analysis of all your numbers).
The prevailing wage system is a cornerstone of the H-1B visa program, designed to protect both US and foreign workers by ensuring that H-1B employment does not adversely affect the wages and working conditions of similarly employed American workers. Before filing an H-1B petition, the employer must file a Labor Condition Application (LCA) with the Department of Labor attesting that the H-1B worker will be paid at least the prevailing wage for the position in the area of intended employment.
The prevailing wage is determined by the Standard Occupational Classification (SOC) code assigned to the position, the geographic area where the work will be performed, and the wage level reflecting the position's requirements and complexity. The DOL uses data from the Occupational Employment and Wage Statistics (OEWS) program, published by the Bureau of Labor Statistics, to calculate prevailing wages for each SOC-area-level combination.
The DOL defines four wage levels that correspond to the complexity of the job duties and the experience and education required. Level 1 represents entry-level positions requiring basic understanding and limited experience, pegged at the 17th percentile of wages for that occupation in the area. These are positions where the worker performs routine tasks under close supervision.
Level 2 represents qualified workers at the 34th percentile, positions requiring a moderate level of experience and the ability to work with limited supervision on non-routine tasks. Level 3 is for experienced workers at the 50th percentile (median), positions requiring significant experience, advanced problem-solving, and the ability to supervise others. Level 4, at the 67th percentile, is for fully competent workers who perform the most complex duties, exercise significant independent judgment, and may lead teams or projects.
Choosing the correct wage level is critical. USCIS scrutinizes the relationship between the job duties described in the petition and the wage level selected. Assigning a position Level 1 wages when the duties described clearly require experienced, independent work at Level 3 or 4 can result in a Request for Evidence (RFE) or denial. Conversely, overpaying relative to the wage level does not cause issues and demonstrates the employer values the position.
Prevailing wages can vary dramatically by location, reflecting the significant cost-of-living differences across the United States. A software developer in the San Francisco Bay Area might have a Level 1 prevailing wage of $95,000, while the same position in a mid-size Midwestern city might have a Level 1 prevailing wage of $70,000. This 35% difference directly impacts the minimum salary an employer must offer for an H-1B worker.
The DOL defines geographic areas primarily by Metropolitan Statistical Areas (MSAs) and Combined Statistical Areas (CSAs). Some states have multiple wage areas with significantly different prevailing wages. For example, New York City, Albany, and Buffalo may all have different prevailing wages for the same occupation. Remote work has complicated this system, as the DOL generally requires the prevailing wage to be based on the location where the work is performed, not where the employer is headquartered.
The Labor Condition Application is not a rubber stamp. The DOL reviews LCAs for completeness and accuracy, and employers face significant consequences for violations. Willful violations can result in fines of up to $35,000 per violation, back pay to affected workers, debarment from the H-1B program for up to three years, and other penalties.
The DOL Wage and Hour Division investigates complaints and conducts audits of H-1B employers. Common violations include paying below the prevailing wage, requiring workers to pay their own petition fees (which effectively reduces wages below the prevailing wage threshold), benching workers without pay during non-productive periods, and failing to provide working conditions comparable to US workers in the same position.
Employers must maintain a public access file containing the LCA, prevailing wage documentation, and other records for each H-1B worker. This file must be available for public inspection at the employer's principal place of business within one working day of filing the LCA. Additionally, the employer must post notice of the LCA filing either in the workplace or electronically for 10 business days.
Employers have two options for determining the prevailing wage. The most common is using the DOL's Online Wage Library, which provides prevailing wages based on OEWS data for each SOC-area-level combination. This is a self-service tool that provides instant results and is sufficient for most H-1B cases.
Alternatively, employers can request a formal Prevailing Wage Determination (PWD) from the National Prevailing Wage Center (NPWC). This is required for PERM labor certification but optional for H-1B LCAs. The PWD process takes 2-6 months and results in an official determination letter. PWDs can be appealed if the employer believes the assigned wage is incorrect, adding additional time to the process.
For positions that do not fit neatly into a single SOC code, the NPWC may assign a combination of duties across multiple codes, typically using the wage from the code with the highest prevailing wage that encompasses a plurality of the job duties. Employers should carefully review the SOC code assignment to ensure it accurately reflects the position and results in a reasonable prevailing wage.
The prevailing wage directly influences which employers can sponsor H-1B workers and at what positions. Small companies in lower-cost areas may find it more feasible to meet prevailing wage requirements than those in high-cost markets. However, the prevailing wage is a floor, not a ceiling, and many employers pay significantly above the prevailing wage to attract top talent.
The wage level also affects the H-1B lottery. USCIS has considered (and in some administrations implemented) a system that prioritizes higher wage levels in the H-1B lottery selection process. Under such a system, Level 4 petitions would be selected first, then Level 3, and so on until the cap is reached. This incentivizes employers to sponsor positions at higher wage levels and attract more experienced workers.
DOL uses four levels: Level 1 (17th percentile, entry-level), Level 2 (34th percentile, qualified), Level 3 (50th percentile, experienced), Level 4 (67th percentile, fully competent).
The LCA will be denied and the H-1B petition cannot proceed. Employers must pay the higher of the actual wage or the prevailing wage.
The prevailing wage is based on the SOC code, geographic area, and wage level, determined by the Department of Labor using Occupational Employment and Wage Statistics data.
No. Federal law requires H-1B workers be paid at least the prevailing wage or actual wage, whichever is higher. Violations result in fines, back pay, and possible debarment.
Yes, significantly. A software developer in San Francisco may have a prevailing wage 40-60% higher than the same role in a rural area.
Use the DOL Foreign Labor Application Gateway (FLAG) system to request a prevailing wage determination. Enter your SOC occupation code, work location, and job requirements. The DOL provides the official wage within 6-8 months, or use OFLC wage data for estimates.
The Standard Occupational Classification code must match your actual job duties, not just the title. Common H-1B codes include 15-1252 (Software Developers), 15-1299 (Computer Occupations), and 15-2051 (Data Scientists). Incorrect SOC codes can lead to RFEs or denials.
The historically reliable base salary must meet or exceed the prevailing wage. Bonuses, commissions, and stock options can count toward total compensation only if they are historically reliable in writing. Variable compensation that is not guaranteed does not satisfy the wage requirement.
A new LCA must be filed if you move to a different Metropolitan Statistical Area, as prevailing wages vary by location. The employer must pay the new prevailing wage for the new location. Remote work arrangements also require LCA amendments.
Higher wage levels strengthen employment-based green card petitions. Level 1 wages can trigger RFEs on I-140 petitions because USCIS may question whether the role truly requires a specialty degree. Level 2 and above are generally safer for green card filing.
Compliance Check: Offered Salary ≥ Prevailing Wage
Prevailing Wage = DOL OEWS data for SOC code + location + wage level
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
Found an error in a formula or source? Report it →
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.