H-1B Lottery Shifts to Wage-Based Selection

The H‑1B visa system, long dominated by a random lottery, is undergoing one of the biggest changes in decades. Starting with the 2026 fiscal year, the U.S. will replace the traditional lottery with a wage-based, weighted selection system, prioritizing higher-paying, higher-skilled jobs. This change affects both international job seekers and U.S. employers, and understanding it can significantly improve your chances of success.

How the H‑1B Lottery Worked Before

Historically, the H‑1B cap allowed for 85,000 visas per year: 65,000 under the regular cap and 20,000 reserved for U.S. master’s degree holders. Because demand far exceeded supply, USCIS (U.S. Citizenship and Immigration Services) conducted a random lottery, where every applicant had an equal chance of being selected, regardless of salary or skill level. While fair in chance, this system often meant that entry-level or lower-paying positions could get selected over highly skilled, high-paying jobs.

Why the System Is Changing

The new wage-based system is designed to prioritize quality over quantity. By giving higher-paid jobs more entries in the selection pool, USCIS aims to encourage employers to offer competitive salaries and align H‑1B visas with the program’s original intent — attracting specialized talent that fills critical gaps in the U.S. workforce. This approach also reduces the likelihood that the lottery is used to hire large numbers of lower-paid workers, ensuring the program serves its intended purpose of attracting highly skilled professionals.

How the Wage-Based Selection System Works

Under the new rules, each H‑1B registration will receive a number of weighted entries based on the wage offered. The higher the wage, the greater the number of entries in the selection pool, which increases the probability of being chosen. USCIS classifies wages into four levels based on the Department of Labor’s prevailing wage data:

For example, a candidate with a Level IV wage offer will have four chances in the selection process, compared to just one chance for a Level I wage offer. While this does not guarantee approval, it significantly improves the odds of being selected.

What This Means for Job Seekers

The wage-based system fundamentally changes the strategy for applicants. Candidates with higher-paying job offers now have better chances of selection, while those with lower-paying positions may face lower odds. For students, early-career professionals, or those applying for entry-level roles, negotiating competitive salaries or targeting positions with higher wage tiers is critical. Applicants should also ensure their job duties and documentation clearly support the assigned wage level to avoid issues during selection or petition review.

How Employers Should Prepare

Employers must now pay close attention to accurate wage classification, job descriptions, and location-based wage data. Proper documentation is essential to avoid reducing a candidate’s chance of selection or encountering compliance issues. Early planning, accurate reporting, and understanding the wage tiers are now crucial for successfully sponsoring H‑1B candidates.

Understanding Wage Levels by Occupation

Different jobs fall into different wage tiers based on skills, experience, and location. Here is a general guide:

Applicants and employers should consult the Department of Labor prevailing wage data for precise wage levels based on occupation and city. This ensures accurate classification and maximizes chances in the weighted lottery.

Key Considerations and Planning Tips

The H‑1B wage-based selection system introduces several important factors:

1. Plan Early – Identify eligible candidates and begin the registration process promptly.
2. Negotiate Competitive Salaries – Higher wages improve selection odds.
3. Ensure Accurate Documentation – Job descriptions, wage levels, and work locations must match supporting documentation.
4. Monitor Official Updates – USCIS may release clarifications or updates each registration season.
5. Seek Professional Guidance – Immigration attorneys can help ensure accurate filing and compliance.

By following these steps, both applicants and employers can improve their chances under the new system.

Why This Change Matters

The shift to a wage-based H‑1B lottery aligns the visa program more closely with its original purpose: attracting highly skilled, well-compensated professionals who contribute to the U.S. economy. It encourages fair pay, reduces misuse of the lottery system, and creates a more transparent, merit-focused approach to skilled immigration.

For international applicants, strategic preparation, wage negotiation, and understanding the system’s nuances have become more important than ever. For employers, meticulous planning and accurate documentation are essential to avoid jeopardizing candidate selection.

Conclusion

The H‑1B lottery transition to a wage-based selection system marks a new era in U.S. skilled immigration. While opportunity remains for all wage levels, higher-paying and higher-skilled roles now enjoy a distinct advantage. Understanding the system, preparing early, and collaborating with experienced immigration professionals are key steps for success.

The 2026 registration period will be the first test of this new system, and its effects will shape the future of H‑1B visas for years to come. Those who plan carefully and act strategically will have the best chance of navigating this transition successfully.