Key Takeaways
The H-1B selection process is undergoing a significant transformation, moving away from a random selection to a merit-based approach. Here is what you need to know about the upcoming changes.
- System Replacement: The H-1B visa lottery system is being replaced. It will now be a ranking system based on Wage Levels rather than random selection.
- Effective Date: The new rules go into effect on February 27, 2026. They will cover the FY 2027 (Fiscal Year 2027) application season.
- Target Beneficiaries: “Senior” experts with high salary offers and professionals with advanced degrees (Master’s or PhD) will benefit most from this new ranking structure.
A new rule has been published for the H-1B visa, which has been debated for a long time. According to this rule, the lottery system is out. A ranking system based on offered salary is in.
The government’s goal is to protect the American workforce. They want to increase the chances of approval for jobs with higher salaries.
What is the H-1B Visa?
The H-1B is a “non-immigrant” visa. It allows US employers to temporarily hire qualified foreign staff in technical fields (like engineering, software, finance, medicine, and architecture).
There is an annual quota of 85,000 people for the H-1B visa:
- General Quota: 65,000 people per year.
- Master’s Quota: An extra 20,000 people for those with a US Master’s or PhD.
Demand is always much higher than these numbers (for example, over 400,000 applications were filed last year). Previously, selection was done by lottery. The new regulation changes this logic.
How Does the New “Wage-Based Ranking” System Work?
The system groups applications based on OES Prevailing Wage levels. These levels are set by the US Department of Labor for every city and occupation. The ranking works like this:
1. First Priority: Level IV (Fully Competent) The selection starts here. This covers top-tier experts who work independently and have the highest qualifications. This group has absolute priority. The system will not look at other levels until all Level IV applications are placed.
2. Second Priority: Level III (Experienced) If there are spots left after Level IV is full (which is likely), the selection moves to this group. This is the “sweet spot” for experienced professionals. Strategically, this level offers a strong mathematical chance of getting a visa.
3. Third Priority: Level II (Qualified) After all valid Level IV and Level III applications are accepted, remaining spots go to this group. This is the critical threshold. Success here depends directly on how full the quota is.
4. Fourth Priority: Level I (Entry Level) This is the bottom of the list. Selection only happens here if the quota is still not full after the other three categories. Under the new ranking logic, the chance for entry-level salaries is very low.
What is OES?
OES stands for Occupational Employment Statistics. It is a massive database published every year by the Bureau of Labor Statistics (BLS).
Simply put, OES is the government’s “Market Price” list. The government tracks the average salary for thousands of jobs in every state, city, and county in America.
Is the H-1B Lottery Completely Gone?
The lottery system has been replaced by the ranking system. However, if the quota fills up within a specific level (for example, if there are too many Level III applicants for the remaining spots), a lottery might happen just among that group.
The Process for FY 2027 (March 2026)
- Registration: Employers will register electronically in March. This time, they must enter your salary and job code (SOC Code) into the system.
- Ranking: USCIS computers will not pick randomly. They will rank applications from the highest salary level to the lowest.
- Selection: They will fill the quota starting from the top (highest salary).
This move aims to stop companies that hire low-wage staff from clogging the system.
Frequently Asked Questions
Q: When do these rules start?
A: According to the official announcement, changes start on February 27, 2026. This means the upcoming season will not use it. The FY 2027 registration period (March 2026) will be the first to use this new system.
Q: I have a Level I salary offer. Do I have zero chance?
A: We cannot say “absolutely zero,” but mathematically it is very hard. If high-salary applications fill the 85,000 spots, the line may never reach the Level I category.
Q: Can we list a higher salary to increase my chances?
A: No. USCIS strictly checks if the declared salary is actually paid after the visa is approved. If there is a mismatch, your visa will be canceled, and your employer will face serious fines.