The H1B Pay Gap Nobody Talks About
Here's a number that should make you angry: 60% of all H1B positions in America pay below the local median wage for the same job in the same area.
That's not a typo. The majority of H1B workers — the "best and brightest" that the visa program is supposed to attract — are being paid less than what the average American worker earns for the same role.
Our analysis of over 5 million H1B Labor Condition Applications (LCAs) reveals a systematic pattern of underpayment that costs skilled foreign workers tens of thousands of dollars every year.
How H1B Wage Levels Work (And How They're Exploited)
The Department of Labor assigns four wage levels to every H1B position. These levels determine the minimum an employer must pay:
| Wage Level | Percentile | Description | Typical Salary (Software Engineer, SF) |
|---|---|---|---|
| Level 1 | 17th percentile | Entry Level | $128,000 |
| Level 2 | 34th percentile | Qualified | $152,000 |
| Level 3 | 50th percentile | Experienced | $176,000 |
| Level 4 | 67th percentile | Fully Competent | $200,000 |
The Problem: Most H1B Workers Are Filed at Level 1 and 2
Here's what the data shows across all H1B filings:
| Wage Level | % of All H1B Filings | What It Means |
|---|---|---|
| Level 1 | 28% | Paid less than 83% of local workers |
| Level 2 | 32% | Paid less than 66% of local workers |
| Level 3 | 22% | Paid at median — fair market rate |
| Level 4 | 18% | Paid above median |
Who's Doing This?
The pattern varies dramatically by company type:
| Company Type | % at Level 1-2 | % at Level 3-4 | Avg Salary |
|---|---|---|---|
| Consulting/Outsourcing | 78% | 22% | $98,000 |
| Mid-Size Tech | 55% | 45% | $142,000 |
| Big Tech (FAANG) | 35% | 65% | $175,000 |
| Finance/Banking | 30% | 70% | $185,000 |
The Salary Gap by Company: Real Numbers
Let's look at what different companies actually pay for the same job title — Software Engineer:
Software Engineer H1B Salaries (2026 Data)
| Company | Median Base Salary | Wage Level Used | vs. Local Median |
|---|---|---|---|
| Meta | $205,102 | Level 3-4 | +35% above |
| $182,000 | Level 3-4 | +20% above | |
| Apple | $170,700 | Level 2-3 | +12% above |
| Microsoft | $164,000 | Level 2-3 | +8% above |
| Amazon | $159,000 | Level 2 | +5% above |
| Local Median | $152,000 | Level 3 | Baseline |
| Cognizant | $101,773 | Level 1-2 | -33% below |
| TCS | $105,529 | Level 1-2 | -31% below |
| Infosys | $103,102 | Level 1-2 | -32% below |
| Wipro | $98,456 | Level 1 | -35% below |
Why This Happens: The Visa Trap
H1B workers face a structural disadvantage in salary negotiations:
1. Employer Controls Your Status
Unlike American workers who can freely quit and find new employment, H1B holders are tied to their sponsoring employer. Changing jobs requires filing a new H1B transfer petition — a process that takes weeks to months and carries uncertainty.
2. The Green Card Golden Handcuffs
Many H1B workers are simultaneously pursuing employer-sponsored green cards (PERM/EB-2/EB-3). Leaving your employer often means restarting the green card process from scratch — which for Indian nationals can mean losing a priority date worth 10-15 years of waiting.
3. Information Asymmetry
Until databases like ours made H1B salary data public, workers often had no idea what their peers at other companies earned. Employers exploited this gap.
4. Wage Level Gaming
Employers can influence the wage level assigned to a position by:
How Much Money Are H1B Workers Leaving on the Table?
We calculated the aggregate underpayment across the entire H1B program:
Annual Underpayment Estimate
| Calculation | Amount |
|---|---|
| Total H1B workers at Level 1-2 | ~310,000 |
| Average underpayment vs. median | $24,500/year |
| Total annual underpayment | $7.6 billion |
H1B vs. Domestic Worker Pay: The Hard Truth
Research from the Economic Policy Institute confirms what our data shows:
The Base Salary vs. Total Comp Problem
One important caveat: H1B data only shows base salary from LCA filings. At big tech companies, total compensation (including stock and bonus) can be 2-3x base salary:
| Company | H1B Base (LCA Data) | Estimated Total Comp | Difference |
|---|---|---|---|
| Meta | $205,000 | $400,000+ | +95% |
| $182,000 | $350,000+ | +92% | |
| Amazon | $159,000 | $280,000+ | +76% |
| Microsoft | $164,000 | $290,000+ | +77% |
| TCS | $105,000 | $108,000 | +3% |
| Infosys | $103,000 | $106,000 | +3% |
How to Fight Back: Salary Negotiation for H1B Workers
Step 1: Know Your Market Value
Use our H1B salary calculator to see what companies in your area pay for your role. Knowledge is your most powerful negotiation tool.
Step 2: Understand Your Wage Level
Check your LCA filing to see what wage level your employer assigned. If you're at Level 1 with 5+ years of experience, something is wrong.
Step 3: Compare Across Companies
Search our company database to find what competitors pay. A Software Engineer at Meta makes $100K more than one at TCS — for similar work.
Step 4: Negotiate at the Right Time
The best time to negotiate is:
Step 5: Consider the Full Package
If your employer won't budge on salary, negotiate for:
The 2026 Wage-Based Lottery Changes Everything
Starting with the FY2027 lottery (registrations in March 2026), USCIS will use a wage-weighted lottery system. Higher-paid positions get better odds:
| Wage Level | Lottery Entries | Estimated Selection Rate |
|---|---|---|
| Level 4 | 4 entries | ~61% |
| Level 3 | 3 entries | ~46% |
| Level 2 | 2 entries | ~30% |
| Level 1 | 1 entry | ~15% |
The bottom line: If your employer files you at Level 1, your odds of getting selected just dropped to 15%. Companies like Cognizant and TCS that mass-file at Level 1-2 will see their selection rates plummet.
Analysis based on 5M+ H1B LCA filings from the U.S. Department of Labor, USCIS employer data, and Economic Policy Institute research. Explore salary data for any company at h1bdatahub.com/search. Use our salary calculator to check your market rate.