You should know by now about the New H1B Visa Wage Level Rule that will go into effect on Oct 8, 2020.
I’m sure you want to know how much you have to be paid as per the new wage level?
Is it $100,000 or $60,000?
There are four wage levels – Level 1, 2, 3, and 4.
Old Wage levels are based on 17th, 34th, 50th, and 67th percentiles of total salary distribution for a specific job at a specific location.
Current Wage Level used for H1B Visa and PERM Labor applications were set 20 years back. It uses the 4 Quartile method.
“The Department acknowledges that the existing wage levels – set at approximately the 17th, 34th, 50th, and 67th percentiles – have been in place for over 20 years, and that many employers likely have longstanding practices of paying their foreign workers at the rates produced by the current levels.”
- Level 1 – 17th Percentile
- Level 2 – 34th Percentile
- Level 3 – 50th Percentile
- Level 4 – 67th Percentile
So, what’s changing?
What is the New-Wage Level Required for H1B Visa?
“Adjusting the levels to the 45th, 62nd, 78th, and 95th percentiles represents a significant change, and may result in some employers modifying their use of the H1B and PERM programs.”
As per the new rule, the Wage Level Percentile is increased.
- Level 1 – 17 to 45th Percentile
- Level 2 – 34 to 62th Percentile
- Level 3 – 50 to 78th Percentile
- Level 4 – 67 to 95th Percentile
So, how much do you need to get paid to get H1B Visa approval now?
I happened to have an old screenshot for Wage Levels for SOC Code 15-1121.00 Computer Systems Analyst from 2016 – 2017.
Now, New Wage Level have bene updated at FLC Data Center based on the New Wage Level rule.
The above data is for Computer Systems Analyst located in San Jose, California.
- Now – Wage Level 1 = Around $74,443
- New – Wage Level 1 = Around $117,416 (Here’s Link to FLC Data for Computer System Analyst)
That’s a huge jump!
If you are in the process of filing your H1B Visa extension, transfer or cap-exempt H1B Visa and if your Salary should follow within the specified new wage level.
Question – Do you think an employer in the San Jose, California paying $76,000 for a Computer Systems Analyst filing an H1B Visa extension next week will increase the salary to $117,416?
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I have given one example. you can use the following steps to find your new wages.
How to Find Your New H1B Visa Salary?
Use the following steps to find the New-Wage Level (approximate)
- Go to FLC Data Center
- Find the Location and Job title
- Look for Wages Level
Summary: New H1B Visa Wage Rule
- Employers need to pay more to meet the new minimum wage level
- New Wage Levels apply to H1B transfers, Extensions as well
- Pending Applications (LCA already filed or approved) are not impacted
- New H1B visa wage levels Effective from Oct 9, 2020
- Lawsuits may be filed for such a drastic wage level change without any advanced notice to employers
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