The H1B wage-weighted lottery, used from the FY2027 cap season, enters each registration into the random draw one to four times by wage level: four entries at Level IV, one at Level I. DHS projects selection odds of about 61% for Level IV and 15% for Level I (Federal Register 2025-23853).
The H1B wage-weighted lottery is USCIS's current registration selection method, created by the DHS weighted selection final rule (Federal Register 2025-23853, effective February 27, 2026) and first used for the FY2027 registration season (March 2026). Instead of giving every registration one entry, USCIS enters each unique beneficiary into the random draw four times at Level IV, three at Level III, two at Level II and once at Level I. Selection is still random; higher levels just hold more entries. How a registration's level is set and what employers must prove: H1B wage-based selection rules.
The four tiers correspond to DOL prevailing wage percentiles for the specific occupation and Metropolitan Statistical Area (MSA) on the Labor Condition Application (LCA):
According to our analysis of 10GB+ DOL LCA disclosure data (FY2022–FY2025), 50.7% of all H1B software engineer certifications are filed at Level II, meaning the majority of registrants face the disadvantaged tier of the new system. Level IV accounts for only 16.4% of filings, yet those registrants face dramatically higher selection probabilities.
The policy rationale: USCIS argues that higher-wage H1B workers generate greater economic impact, are harder to replace with US workers, and are less susceptible to wage suppression. Critics note it structurally advantages Big Tech and Wall Street while disadvantaging IT consulting firms and international outsourcing employers.
USCIS has not published actual selection rates by wage level. The rates below are the projections DHS published in the final rule; under a purely random draw, DHS estimates every registration would have about a 30% chance (29.59%).
| Wage Level | Percentile | Example Wage Range | Share of Filings | DHS Projected Rate |
|---|---|---|---|---|
| Level I | 17th percentile | $62K–$88K | 11.4% | 15% |
| Level II | 34th percentile | $90K–$130K | 50.7% | 31% |
| Level III | 50th percentile | $140K–$175K | 21.6% | 46% |
| Level IV | 67th percentile+ | $185K–$280K+ | 16.4% | 61% |
Rates: DHS projections, weighted selection final rule (Federal Register 2025-23853), not published results. Filing shares: H1BVisaJobs LCA database, FY2022–FY2025.
DHS projects that a Level IV registration is about four times as likely to be selected as a Level I registration (61% vs 15%). In the final rule, DHS says the process will "favor the allocation of H-1B visas to higher-skilled and higher-paid aliens." For candidates, this means the single biggest lever on H1B success is no longer luck, it's your employer's prevailing wage filing tier.
Wage level is determined by the DOL prevailing wage for your specific SOC code and MSA , not just your offered salary in isolation. The same software engineer title can be Level II in Dallas and Level IV in San Francisco, because DOL uses location-specific wage benchmarks. Below are real-world examples from our LCA database.
The implication is direct: a software engineer at a FAANG company in the Bay Area at $205K (Level IV) has a DHS-projected 61% chance, while an equally-skilled candidate placed by a staffing firm in Dallas at $72K (Level I) has about 15%, for the same occupational title. The lottery outcome now tracks employer quality and compensation philosophy as much as individual qualifications.
The wage-weighted system fundamentally changes the H1B job search calculus. Salary is no longer just compensation, it's a lottery probability multiplier. Here is what that means in practice.
Our LCA database shows that direct-hire tech, finance, and pharma roles at mid-to-large companies are overwhelmingly filed at Level III or IV. Consulting and staffing placements run 60–70% at Level I–II. If you are currently in a consulting track, an internal transfer or direct-hire offer from a product company dramatically improves your odds in the next cycle.
Before finalizing an offer, ask your employer's immigration attorney what prevailing wage tier the role qualifies for under DOL data. If you are $8,000 below the Level III threshold, negotiating your base salary up can be the difference between about 31% and 46% projected selection odds. Use the H1B salary data tool to benchmark your offer against certified LCA wages.
Check your employer's historical LCA filings using the DOL LCA disclosure database or our H1B sponsor profiles. An employer with 500 past filings, 80% at Level I, is telling you exactly what to expect. Our LCA database covers FY2022–FY2025 with 10GB+ of certified filing data.
Universities, nonprofit research institutions, and government entities are exempt from the H1B cap entirely, no lottery at all. According to the USCIS cap-exempt guidance (2024), qualifying positions at these organizations bypass the lottery entirely, making them worth serious consideration if your Level II odds (about 31%, DHS projection) feel unacceptable.
Based on our analysis of FY2022–FY2025 DOL LCA data, the following job titles have the highest concentrations of Level III and Level IV filings. These are the roles where the wage-weighted lottery is actively working in your favor.
Browse H1B high-salary jobs right now
We filter open H1B roles by companies with a track record of Level III and IV filings, so you know the odds before you apply.
The wage-weighted lottery is the most significant structural disadvantage for consulting and outsourcing firm candidates in H1B history. Before the FY2027 rule change, a candidate sponsored by Tata Consultancy Services had identical lottery odds to one sponsored by Google. That is no longer the case.
According to DOL LCA disclosure data (FY2022–FY2025, n = 10GB+), IT staffing and outsourcing firms file approximately 65% of H1B petitions at Level I or II. This is not because their employees are less skilled, it's because prevailing wage levels are computed relative to the local labor market, and staffing firms historically underbid wage rates to remain competitive on client contracts.
The practical consequence: DHS projects that a candidate sponsored at Level I has about a 15% chance, half the roughly 30% every registration would get in a purely random draw, while a Level IV candidate at a direct-hire employer has about 61%.
If you are currently placed via a consulting firm
The most effective strategy is to use your current role to build 2–3 years of demonstrable experience, then target a direct-hire offer at the same or higher seniority level. A senior engineer role at a product company in the same city will typically qualify for Level III or IV versus the same engineer's consulting placement at Level I, because the direct-hire employer's wage offer reflects full market rate without a margin layer.
We match you with employers that historically file at Level III or higher, so you start the next lottery with better odds, not average ones.