H1B Salary Guide

How H1B Salaries Work

Salaries for H1B workers are not determined arbitrarily. Every H1B petition is tied to a Labor Condition Application (LCA), which includes the employer's attestation that the offered wage meets or exceeds both the prevailing wage and the employer's actual wage for similarly employed workers. This dual wage floor ensures that H1B workers are compensated fairly and that their employment does not undercut wages for U.S. workers in comparable positions.

The prevailing wage is established by the Department of Labor (DOL) based on the occupation, geographic area, and the worker's level of experience and education. The actual wage is the wage paid by the employer to other employees in the same position with similar qualifications. The employer must pay the higher of these two amounts.

This system means that H1B salaries are publicly documented on LCA filings, making them one of the most transparent segments of the U.S. labor market. You can search our database to view real salary data from hundreds of thousands of H1B filings across employers, occupations, and locations.

Understanding how H1B salaries are structured is important whether you are a worker evaluating a job offer, an employer planning a sponsorship, or a researcher studying labor market dynamics. For a broader overview of the H1B program, see our complete H1B visa guide.

The Four Wage Levels

The DOL classifies H1B prevailing wages into four levels, each corresponding to a different tier of experience, education, and responsibility. These levels are a critical component of the H1B salary structure and are used in every LCA filing. For full details on how these levels are calculated, see our prevailing wage explained page.

Level 1 — Entry Level

Level 1 wages correspond to the 17th percentile of wages for the occupation in the area of employment. This level is intended for workers who are beginning their career in the occupation, performing routine tasks under close supervision. Level 1 positions typically require a basic understanding of the occupation and limited practical experience.

Level 1 wages are common in H1B filings for recent graduates and workers new to a specific occupation in the United States. However, some critics argue that overuse of Level 1 wages by employers — particularly for experienced workers — depresses wages in certain sectors.

Level 2 — Qualified

Level 2 wages correspond to the 34th percentile of wages. Workers at this level have gained the knowledge and abilities needed to perform moderately complex tasks with limited supervision. This level is appropriate for workers with a few years of experience or those who have demonstrated competence in the specialty.

Level 2 is one of the most commonly used wage levels in H1B filings. It represents workers who are past the entry stage but have not yet reached full proficiency in all aspects of the occupation.

Level 3 — Experienced

Level 3 wages correspond to the 50th percentile (median) of wages. This level is for workers who have a solid understanding of all aspects of the occupation and can work independently on complex tasks. They may also be expected to supervise or coordinate the work of others.

Level 3 workers typically have several years of experience and may possess advanced skills or specialized knowledge within their occupation. This is considered the mid-career level in the DOL's framework.

Level 4 — Fully Competent / Expert

Level 4 wages correspond to the 67th percentile of wages. Workers at this level demonstrate a high level of expertise and are capable of performing the most complex duties within the occupation. They often exercise significant judgment, leadership, and innovation.

Level 4 is used for senior professionals, technical leads, and highly specialized roles. Employers offering Level 4 wages are typically seeking top-tier talent for critical positions. These filings tend to have higher approval rates because the wage level itself demonstrates the specialty nature and value of the position.

Wage Level Distribution

Across all H1B filings nationwide, the distribution of wage levels provides insight into how employers use the program. A significant portion of LCA filings are at Level 1 and Level 2, particularly in the technology sector. Fewer filings occur at Level 3 and Level 4, though these tend to correspond to higher salaries and more senior positions. You can explore salary data for specific occupations and employers by using our search tool.

How Prevailing Wages Are Determined

The prevailing wage for a given H1B position depends on three primary factors: the Standard Occupational Classification (SOC) code, the geographic area of employment, and the assigned wage level.

The Data Source: OEWS Survey

Prevailing wages are primarily derived from the Occupational Employment and Wage Statistics (OEWS) survey, conducted by the Bureau of Labor Statistics (BLS). This survey collects wage and employment data from approximately 1.1 million establishments across the United States every year. The data is reported at both national and metropolitan-area levels, providing granular geographic wage information.

The Role of DOL's OFLC

The DOL's Office of Foreign Labor Certification (OFLC) uses OEWS data to publish the Online Wage Library, which contains prevailing wage data for every SOC code and geographic area. Employers filing LCAs reference this data to determine the appropriate prevailing wage for their H1B position.

Employers also have the option of requesting a formal Prevailing Wage Determination (PWD) from the National Prevailing Wage Center, or they may use a wage survey conducted by an independent authoritative source, provided it meets DOL standards. However, the vast majority of H1B LCA filings use the OEWS-based prevailing wages from the OFLC Online Wage Library.

Geographic Variation

Prevailing wages vary significantly by location. A software developer in San Francisco will have a much higher prevailing wage than one in a smaller metropolitan area due to the higher cost of living and stronger demand for tech talent. This geographic adjustment means that the same occupation and wage level can produce very different dollar amounts depending on where the work is performed.

H1B Salary vs. Market Rate

One of the most frequently asked questions about the H1B program is how H1B salaries compare to wages paid to U.S. workers in the same occupations. This comparison is important for understanding the program's impact on the broader labor market.

What the Data Shows

Our database compares H1B salary data from LCA filings against BLS median wages for the same occupations at the national level. This comparison reveals that H1B salaries vary widely by employer, occupation, and location. Some employers consistently offer salaries well above market median, while others cluster near the prevailing wage floor.

You can see these comparisons in action by searching for specific employers or occupations in our database search. Each employer profile and occupation page includes salary comparison metrics showing how H1B wages relate to the broader market.

Factors That Influence the Comparison

• Wage level used: Employers filing at Level 1 are paying at the 17th percentile, which is below the median by definition. Level 3 filings align with the median, and Level 4 exceeds it.
• Company type: Large technology companies and financial institutions tend to offer higher wages relative to the prevailing wage. Staffing and consulting companies more often file at lower wage levels.
• Occupation: High-demand occupations in technology and healthcare tend to see H1B wages closer to or above market median. Occupations with larger labor pools may see more filings at lower wage levels.
• Geography: High-cost areas like the San Francisco Bay Area, New York City, and Seattle tend to have higher H1B salaries, reflecting local market conditions.

Browse our top H1B sponsors to see how the largest H1B employers compare on salary metrics.

Salary Trends by Industry

H1B salary patterns differ significantly across industries, reflecting the varying demand for international talent and the nature of positions being filled.

Technology

The technology sector accounts for the largest share of H1B filings. Positions such as software developers, systems engineers, and data scientists dominate H1B applications in this industry. Salaries range from approximately $80,000 for entry-level positions at smaller companies to well over $200,000 for senior roles at major tech firms. The technology industry shows the widest salary range among H1B occupations.

Healthcare

Healthcare H1B positions include physicians, physical therapists, pharmacists, and medical researchers. These positions often command strong salaries, particularly for physicians and specialists. The healthcare sector is notable for having a higher proportion of Level 3 and Level 4 wage filings compared to technology.

Financial Services

Banks, investment firms, and insurance companies sponsor H1B workers for roles in quantitative analysis, financial engineering, accounting, and actuarial science. Salaries in financial services H1B filings tend to be above the national median, especially in New York City and other major financial centers.

Consulting and Staffing

IT consulting and staffing companies represent a significant portion of H1B filings. These employers often file at lower wage levels because workers may be placed at client sites in various locations. This segment of the H1B market has been subject to increased scrutiny regarding wage levels and the specialty occupation requirement.

Academia and Research

Universities and research institutions sponsor H1B workers for faculty positions, postdoctoral researchers, and specialized research roles. While academic salaries are often lower than private sector equivalents, these employers are cap-exempt, offering an important advantage in the H1B process.

Salary Negotiation Tips for H1B Workers

Negotiating salary as an H1B worker requires understanding both the prevailing wage framework and broader market dynamics. Here are strategies to help you secure fair compensation.

Research Before Negotiating

• Use H1B salary data: Search our database to see what other employers are paying for similar roles in your area. This gives you concrete data points to support your negotiation.
• Understand your wage level: Know which wage level your position is being filed at and what the corresponding prevailing wage is. If you have significant experience, you should be filed at Level 2 or higher — not Level 1.
• Compare with market data: Use BLS data, Glassdoor, LinkedIn Salary Insights, and other sources to understand the full market range for your position.

Key Negotiation Points

• Total compensation: Beyond base salary, negotiate for bonuses, stock options or RSUs, signing bonuses, relocation assistance, and other benefits. H1B LCA filings only reflect base salary, but total compensation can be significantly higher.
• Wage level classification: If you have experience that qualifies you for a higher wage level, discuss this with your employer. A higher wage level filing can result in a significantly higher salary floor.
• Future increases: Discuss salary review schedules and performance-based raises. While the LCA locks in a minimum wage, actual compensation can and should increase over time.
• Green card sponsorship: Many H1B workers value long-term immigration support. If salary flexibility is limited, negotiating for early green card sponsorship can be a valuable alternative.

Common Mistakes to Avoid

• Do not accept a salary at or near the Level 1 prevailing wage if you have several years of experience — you may be undervalued.
• Do not assume the prevailing wage is the salary ceiling. Many employers pay well above the prevailing wage, especially for competitive roles.
• Do not ignore the cost of living in your work location. A high nominal salary in an expensive metro area may provide less purchasing power than a moderate salary elsewhere.

Related Resources

Explore more H1B data and guides to make informed decisions about your career:

• Prevailing Wage Explained — Deep dive into how the DOL calculates prevailing wages and what each wage level means.
• Complete H1B Visa Guide — Everything about H1B eligibility, the application process, cap, lottery, and timeline.
• H1B Approval Process — Understand LCA filing, USCIS petition review, RFEs, and approval rates.
• Green Card (PERM) Guide — Learn about employer-sponsored permanent residency through PERM labor certification.
• Top H1B Sponsors — Browse the largest H1B sponsoring employers and their salary data.
• Search H1B Data — Look up salaries, employers, and occupations in our comprehensive database.