H1B Prevailing Wage Calculator

Estimate the Department of Labor (DOL) required wage for your H-1B petition.

Wage Levels Comparison Chart

This chart visualizes the salary progression across the four wage levels for the chosen job and area.

What is the H1B Prevailing Wage?

The H1B prevailing wage is the minimum wage an employer is required to pay an H-1B worker for a specific job in a specific geographic area. This rate is determined by the U.S. Department of Labor (DOL) to ensure that hiring foreign workers does not negatively impact the wages of U.S. workers. Employers must attest on the Labor Condition Application (LCA) form that they will pay the H-1B employee the higher of either the prevailing wage or the actual wage paid to other similarly qualified employees. Our h1b prevailing wage calculator helps you estimate this critical number before you file.

H1B Prevailing Wage Formula and Explanation

There isn’t a single mathematical “formula” for the prevailing wage. Instead, it is a data-driven figure derived from the Occupational Employment and Wage Statistics (OEWS) survey conducted by the Bureau of Labor Statistics. The DOL categorizes this data based on occupation, geographic area, and four distinct wage levels. This tool simulates a lookup in that database.

Variables Explained

Variable	Meaning	Unit (Auto-Inferred)	Typical Range
Occupation (SOC)	The Standard Occupational Classification code that matches the job duties.	SOC Code (e.g., 15-1252)	Varies by profession. See {related_keywords}.
Geographic Area	The Metropolitan Statistical Area (MSA) where the job is located.	MSA Name	All U.S. metropolitan and non-metropolitan areas.
Wage Level	Represents the job’s requirements for skill, experience, and supervision.	Level (I, II, III, IV)	1 (entry) to 4 (fully competent).

Practical Examples

Example 1: Entry-Level Software Developer in Texas

An employer wants to hire a recent graduate as a Software Developer in Dallas.

• Inputs:
  • Occupation: Software Developers (15-1252)
  • Location: Dallas-Fort Worth-Arlington, TX
  • Skill Level: Level I (Entry)
• Results: Based on the data in our h1b prevailing wage calculator, the estimated prevailing wage might be around $82,451/year.

Example 2: Experienced Data Scientist in California

A tech company in San Francisco needs to hire a Data Scientist with a Master’s degree and several years of experience, who will lead projects independently.

• Inputs:
  • Occupation: Data Scientists (15-2051)
  • Location: San Francisco-Oakland-Hayward, CA
  • Skill Level: Level IV (Fully Competent)
• Results: The calculator would show a significantly higher prevailing wage, potentially around $215,613/year, reflecting the high cost of living and high demand for experienced talent in that area.

How to Use This H1B Prevailing Wage Calculator

Follow these steps to get an accurate estimate of the required wage for your H-1B case:

1. Select the Occupation: Choose the Standard Occupational Classification (SOC) from the dropdown that most accurately reflects the job duties. Getting the {related_keywords} right is crucial.
2. Choose the Employment Location: Select the Metropolitan Statistical Area (MSA) where the employee will primarily work.
3. Determine the Skill Level: Select the appropriate wage level. Level 1 is for entry-level positions requiring basic understanding, while Level 4 is for senior roles requiring a high degree of judgment and expertise.
4. Review the Results: The calculator will instantly display the estimated annual and hourly prevailing wage, along with a bar chart comparing all four levels for the selected role and location.

Key Factors That Affect the H1B Prevailing Wage

• Geographic Location: Wages in high-cost-of-living areas like New York City or San Francisco are substantially higher than in smaller cities.
• SOC Code: The specific occupational classification is a primary driver. A ‘Software Developer’ (15-1252) will have a different wage base than a ‘Data Scientist’ (15-2051).
• Skill Level Determination: The difference between a Level I and a Level IV wage can be over $100,000. This is based on job complexity, supervision required, and experience needed.
• Data Source and Year: The DOL updates its wage data annually (around July 1st). The wages for the same job can change from year to year.
• Alternative Wage Sources: While most use the DOL’s OES data, employers can sometimes use alternative private wage surveys, though this carries more risk of a challenge.
• Job Duties vs. Job Title: The DOL focuses on the duties described in the LCA, not just the title. The duties must align with the chosen SOC code.

Frequently Asked Questions (FAQ)

What are the four wage levels?

The four wage levels correspond to different percentiles of the wage distribution for an occupation: Level I (~17th percentile), Level II (~34th percentile), Level III (~50th percentile), and Level IV (~67th percentile). They represent the progression from entry-level to a fully competent, senior worker.

What happens if my offered salary is below the prevailing wage?

Your Labor Condition Application (LCA) will likely be denied. You must offer at least 100% of the prevailing wage for the LCA to be certified by the DOL, which is a prerequisite for filing the H-1B petition with USCIS. Trying to find the correct {related_keywords} is essential.

How often does the prevailing wage data change?

The Department of Labor typically updates the OES wage data annually, with the new rates becoming effective around July 1st of each year.

Is this calculator an official source?

No, this h1b prevailing wage calculator is for estimation and informational purposes only. The official wage determination must be obtained from the National Prevailing Wage Center (NPWC) by filing Form ETA-9141 or by using the DOL’s Online Wage Library.

What is an SOC code?

SOC stands for Standard Occupational Classification. It’s a system used by federal agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data. Choosing the correct SOC code is a critical step in the H-1B process.

Can I use a private wage survey instead of the DOL data?

Yes, employers have the option to use a valid independent authoritative survey. However, the survey must meet specific DOL criteria, and using the DOL’s own data provides a “safe harbor,” meaning the wage itself won’t be challenged in an investigation.

Does the prevailing wage include bonuses or benefits?

No, the prevailing wage determination refers to the base cash salary offered. It does not include non-cash benefits, bonuses, or other compensation.

What is the difference between “prevailing wage” and “actual wage”?

The prevailing wage is the average for a job in a specific area. The “actual wage” is what the employer pays to other employees in the same role with similar qualifications and experience. You must pay the H-1B worker the higher of these two figures.