The prevailing wage level is the Department of Labor's measure of how senior a job is within its occupation. For each occupation and area, DOL publishes four levels drawn from the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey, currently at about the 17th, 34th, 50th and 67th percentiles of local wages (DOL, 91 FR 15454). The same four-level structure is used for PERM labor certification and for H-1B, H-1B1 and E-3 Labor Condition Applications (same).
As of October 23, 2026, the level matters in three places: the minimum wage your employer must offer, the PERM process, and, since 2026, your chances in the H-1B lottery. This guide explains how DOL assigns a level and why it is worth understanding before a job offer is written.
- DOL sets four prevailing wage levels for each occupation and area using the BLS Occupational Employment and Wage Statistics (OEWS) survey.
- The current levels sit at about the 17th, 34th, 50th and 67th percentiles of the OEWS wage distribution.
- Every prevailing wage request starts at Level I; points for above-normal experience, education, special skills and supervision move it up, to a maximum of Level IV.
- For PERM, the offered wage must equal or exceed the prevailing wage; for H-1B, the employer must pay the greater of the actual wage or the prevailing wage.
- The OFLC wage year now in effect runs from July 1, 2026 to June 30, 2027.
- In the weighted H-1B lottery, Level IV registrations are entered four times and Level I registrations once.
- A March 2026 DOL proposal would raise all four levels; as of October 23, 2026 it is still only proposed.
What do Level I, II, III and IV mean?
DOL's prevailing wage guidance gives each level a description (DOL, Prevailing Wage Determination Policy Guidance, Revised November 2009):
| Level | DOL label | Who it fits |
|---|---|---|
| Level I | Entry | Beginning employees with a basic understanding of the occupation, working under close supervision |
| Level II | Qualified | Employees with a good understanding of the occupation who perform moderately complex tasks |
| Level III | Experienced | Employees with special skills or knowledge who exercise judgment and may coordinate others |
| Level IV | Fully competent | Employees who plan and conduct work requiring independent judgment and solve unusual and complex problems |
The guidance adds that statements that a job is for "a research fellow, a worker in training, or an internship are indicators that a Level I wage should be considered" (DOL guidance).
How does DOL assign a prevailing wage level?
It starts low and adds. The guidance says "all prevailing wage determinations start with a Level I determination," and then compares the employer's requirements with what ONET describes as normal for the occupation (DOL guidance). The worksheet has five steps:
- Match the job to an ONET occupation and note its usual education and experience.
- Add points if the experience required is above the usual range for that occupation.
- Add points if the education required is higher than usual.
- Add points for special skills or other requirements, such as particular machines, equipment or tools.
- Add a point for supervising others, unless supervision is customary for the occupation.
DOL then sums the points, each worth one level above Level I, and "if the sum total is greater than 4, then the wage level shall be Level 4" (DOL guidance). The same document warns that the process "should not be implemented in an automated fashion" and that the level should match the complexity of the work and the judgment required (same).
In practice, the requirements an employer writes into the job description drive the level. Asking for more experience than the occupation normally requires raises the level, and the wage.
What must the employer pay at each level?
The level becomes a floor. For PERM, the regulation requires that "the offered wage equals or exceeds the prevailing wage," and that the wage paid when the worker begins the certified job also meets the prevailing wage then in force (20 CFR 656.10(c)(1)). Where no union contract applies, the PERM prevailing wage is based on the OEWS survey unless the employer provides an acceptable survey of its own (20 CFR 656.40(b)).
For H-1B, the employer attests on the Labor Condition Application that the wage "shall be the greater of the actual wage rate" paid to similar workers "or the prevailing wage," for the entire period of authorized employment (20 CFR 655.731(a)).
The underlying wage data change every year. OFLC's current wage year runs from July 1, 2026 through June 30, 2027 and is based on BLS's May 2025 estimates (OFLC, Technical Release Notes, Wage Year 2026-27). A PERM prevailing wage determination is valid for at least 90 days and no more than one year (20 CFR 656.40(c)).
How does the wage level affect the H-1B lottery?
Directly, since 2026. Under the weighted selection rule effective February 27, 2026, a registrant must select "the highest Occupational Employment and Wage Statistics (OEWS) wage level that the beneficiary's proffered wage equals or exceeds" for the occupation and area (8 CFR 214.2(h)(8)(iii)(A)(4)(i), 90 FR 60965). Each beneficiary is then entered in the pool four times at Level IV, three at Level III, twice at Level II and once at Level I (90 FR 60965).
Note the difference in method. For the lottery, the level comes from where the offered salary falls against the OEWS levels. For a PERM prevailing wage determination, DOL assigns the level from the job's requirements. The same job can therefore show different levels in the two processes. Our explainer on the H-1B weighted lottery covers the lottery side in detail.
Could the levels change soon?
DOL has proposed raising them. Its March 27, 2026 proposal would move Level I from about the 17th to the 34th percentile, Level II from the 34th to the 52nd, Level III from the 50th to the 70th, and Level IV from the 67th to the 88th (91 FR 15454). As of October 23, 2026, the Federal Register lists only that proposed rule under its regulation number, with no final rule (Federal Register, RIN 1205-AC30).
| Level | Current percentile | Proposed percentile |
|---|---|---|
| Level I | 17th | 34th |
| Level II | 34th | 52nd |
| Level III | 50th | 70th |
| Level IV | 67th | 88th |
If a final rule is adopted, the salary needed to reach each level would rise for both PERM and H-1B.
What this means for you
The prevailing wage level is not a judgment of your talent. It is a function of the job description, the occupation code and the location.
- Read the job requirements your employer plans to use for PERM; each above-normal requirement can raise the level and the required wage.
- For an H-1B registration, check which OEWS level the offered salary reaches in the worksite's area.
- Track the DOL proposal before signing an offer that sits just above a level boundary.
- If PERM economics or timing do not work, compare routes that skip labor certification; our guide to EB-2 NIW versus PERM sets out the trade-offs.
Where to start
The routes that avoid prevailing wage rules altogether are self-petitions such as EB-1A and the NIW. Our free evaluation at /evaluate/ shows whether either is realistic for you, and Frank, our AI assistant at /frank, finds real opportunities for the criteria you are missing. Our guide to a green card without PERM explains the options. Petitions are reviewed and filed by our partner law firm, Lai & Turner.
Sources
All checked October 23, 2026.
- DOL ETA, Prevailing Wage Determination Policy Guidance, Nonagricultural Immigration Programs (Revised November 2009). Level descriptions; Level I starting point; worksheet steps; summing and Level 4 cap; not automated.
- DOL, Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States, 91 FR 15454 (Mar. 27, 2026). Current and proposed percentiles; scope across PERM, H-1B, H-1B1 and E-3; OEWS basis.
- Federal Register search, RIN 1205-AC30. Only the proposed rule published as of October 23, 2026.
- 20 CFR 656.10 (govinfo, 2025 edition). PERM offered wage must equal or exceed the prevailing wage.
- 20 CFR 656.40 (govinfo, 2025 edition). OEWS as the basis of the PERM prevailing wage; validity period.
- 20 CFR 655.731 (govinfo, 2025 edition). H-1B wage: greater of actual or prevailing.
- OFLC, Technical Release Notes for the OEWS Update, Wage Year 2026-27. Current wage year dates and data basis.
- DHS, Weighted Selection final rule, 90 FR 60864 (Dec. 29, 2025). Lottery wage level selection and weighting.
Frequently asked questions
What are the four prevailing wage levels?
DOL guidance describes Level I as entry, for beginning employees with a basic understanding of the occupation; Level II as qualified, for employees with a good understanding who perform moderately complex tasks; Level III as experienced, for employees with special skills or knowledge who exercise judgment; and Level IV as fully competent, for employees who plan and conduct work requiring independent judgment and solve unusual and complex problems.
How does DOL decide my job's prevailing wage level?
Under its November 2009 guidance, DOL starts every request at Level I. It then compares the employer's requirements with what O*NET says is normal for the occupation and adds points for above-normal experience, a higher education requirement, special skills, and supervisory duties that are not customary. The total sets the level, capped at Level IV, and DOL says the process should not be applied mechanically.
Does a higher wage level help in the H-1B lottery?
Yes. Under the weighted selection rule in effect since February 27, 2026, a beneficiary assigned Level IV is entered in the selection pool four times, Level III three times, Level II twice and Level I once. The level comes from the highest OEWS level the offered wage meets for the occupation and area, so the salary, occupation code and worksite all matter.
Do I have to be paid at the level on my PERM application?
For PERM, the regulation requires the offered wage to equal or exceed the prevailing wage, and the wage paid when you begin the certified work must also meet the prevailing wage then applicable. Employers can pay more than the prevailing wage. For H-1B, the employer must pay the higher of its actual wage for similar workers or the prevailing wage for the whole authorized period.
Are prevailing wage levels going up?
Possibly. The Labor Department proposed on March 27, 2026 to raise Level I from about the 17th to the 34th percentile and Level IV from about the 67th to the 88th, for both PERM and H-1B. As of October 23, 2026, the Federal Register shows only the proposed rule, so the current levels still apply. Separately, OFLC updates the underlying wage data every July.
What is an H-1B wage level?
It is the prevailing wage level, Level I to Level IV, that applies to the job's occupation and area. DOL's levels sit at about the 17th, 34th, 50th and 67th percentiles of local wages. On the LCA, the employer must pay at least the higher of the actual wage or the prevailing wage, and since 2026 the level also affects selection odds in the H-1B lottery.
Green Card Guide AI is not a law firm and this article is not legal advice. It describes evidence-building strategy in general terms; your attorney determines what belongs in your petition and how it's argued.
