Prevailing Wages Rise 3.3%: What H-1B and PERM Filers Need to Know

What Happened

On June 29, 2026, the Department of Labor's Office of Foreign Labor Certification (OFLC) released updated Occupational Employment and Wage Statistics (OEWS) prevailing wage data for [Wage Year 2026–27](https://flag.dol.gov/wage-data/wage-search). The new wage rates took effect on July 1, 2026, and apply to all new H-1B, H-1B1, E-3, and PERM labor certification filings that rely on prevailing wage determinations.

An [analysis by Boundless Immigration](https://www.boundless.com/blog/2026-prevailing-wage-updates-employers) comparing approximately 179,000 occupation-by-metro combinations found that prevailing wages rose in roughly 74% of them. The median increase nationwide was 3.3%. The update reflects underlying Bureau of Labor Statistics survey data and is the standard annual refresh — but this year's numbers land in a landscape transformed by the wage-weighted H-1B lottery and a pending DOL proposal to raise the minimum wage floor from the 17th to the 34th percentile.

Which Occupations Saw the Biggest Increases

The wage increases varied significantly by occupation family. The largest median increases hit fields where employers frequently sponsor foreign workers:

• Life, physical, and social sciences: +5.2%
• Legal occupations: +5.2%
• Arts and media: +5.1%
• Healthcare practitioners: +4.0%
• Computer and mathematical occupations: +3.4%

The Silicon Valley Exception

While technology wages generally increased across major hiring markets, one region bucked the trend. In the Santa Clara/San Jose metropolitan area, prevailing wages fell for both Software Developers (−2.1%) and Data Scientists (−5.7%), making it the only major metro in the Boundless analysis where both occupations declined year over year.

Despite those decreases, Santa Clara continues to have the highest prevailing wage levels in the country for both roles. The decline likely reflects a normalization in an already exceptionally high-paying market rather than weakening demand for tech talent. Other major tech metros saw increases: San Francisco Software Developers rose 3.0%, Boston rose 4.9%, and New York rose 3.0%.

Tech Metro Wage Changes at a Glance

The following metro-level data for key technology occupations illustrates the regional variation (all figures represent the year-over-year change from Wage Year 2025–26 to 2026–27):

• San Francisco — Software Developers: +3.0%, Data Scientists: +6.2%, Engineers (avg): +3.0%
• Santa Clara / San Jose — Software Developers: −2.1%, Data Scientists: −5.7%, Engineers (avg): +2.0%
• Los Angeles — Software Developers: +2.9%, Data Scientists: +4.7%, Engineers (avg): +3.7%
• New York — Software Developers: +3.0%, Data Scientists: +3.5%, Engineers (avg): +1.9%
• Boston — Software Developers: +4.9%, Data Scientists: −0.8%, Engineers (avg): +0.3%
• Austin — Software Developers: +3.0%, Data Scientists: +1.6%, Engineers (avg): +1.6%
• Dallas — Software Developers: +2.7%, Data Scientists: +3.4%, Engineers (avg): +4.7%

Why This Matters More Than Usual

The annual prevailing wage refresh is a routine event, but three concurrent policy shifts amplify its significance this year.

First, the [wage-weighted H-1B lottery](https://haven-five-hazel.vercel.app/blog/h1b-wage-weighted-lottery-fy2027-results) — effective for the FY2027 cap season — assigns selection entries based on OEWS wage level. A Level IV position receives four entries, Level III receives three, Level II receives two, and Level I gets one. When prevailing wages rise, the gap between an employer's offered salary and the next wage-level threshold shrinks. A position that comfortably cleared Level III last year might now fall to Level II, cutting its lottery entries from three to two.

Second, DOL's [proposed prevailing wage rule](https://haven-five-hazel.vercel.app/blog/dol-h1b-perm-wage-rule-2026-comment-period) would raise the entry-level floor from the 17th to the 34th percentile of surveyed wages for H-1B, H-1B1, E-3, and PERM filings. If finalized, this would compound the effect of the annual data increase. The Spring/Summer 2026 Unified Regulatory Agenda, [released July 5](https://www.business-standard.com/immigration/trump-s-new-immigration-roadmap-and-what-it-means-for-h-1bs-students-126070700341_1.html), confirmed DOL plans to finalize this rule.

Third, the [DOL PERM recruitment overhaul](https://haven-five-hazel.vercel.app/blog/dol-perm-recruitment-overhaul-2026) now in rulemaking would modernize the labor market test for employer-sponsored green cards. Together, these three developments — higher baseline wages, a wage-sensitive lottery, and tighter recruitment standards — create materially higher costs and compliance burdens for EB-2 and EB-3 sponsorship.

What Attorneys Should Know

The updated OEWS data applies to all Labor Condition Applications (LCAs) filed on or after July 1, 2026. Under [20 CFR § 655.731(a)](https://www.ecfr.gov/current/title-20/chapter-V/part-655/subpart-H/section-655.731), employers must pay H-1B workers at least the prevailing wage for the occupation in the area of intended employment. The prevailing wage is determined by the OEWS wage level at the time of the LCA filing.

For PERM labor certification cases, prevailing wage determinations (PWDs) requested from the OFLC National Prevailing Wage Center after July 1 will use the new data. Existing valid PWDs issued under the prior wage year remain valid for their stated validity period — typically 90 days from the determination date, with an additional 90-day extension available.

Key practice points: (1) Re-run the OFLC [Online Wage Library](https://flag.dol.gov/wage-data/wage-search) search for any position where the offered salary was within 5% of the old prevailing wage — even a 3% increase can push a case below the threshold. (2) For H-1B registrations, recalculate which OEWS wage level the offered salary now falls into; a shift from Level III to Level II reduces lottery entries by one-third. (3) For PERM cases in preparation, confirm that the offered wage still meets or exceeds the prevailing wage before beginning recruitment.

What Applicants Should Do

If your employer is sponsoring you for an H-1B visa or an employment-based green card, the new prevailing wage data could affect your case. Here is what to check:

• Ask your employer or immigration attorney to verify that your offered salary still meets the prevailing wage for your specific occupation and work location using the updated Wage Year 2026–27 data.
• If you are in the H-1B lottery pipeline for FY2027 and your petition has not yet been filed, confirm your offered wage level has not shifted downward under the new data — this directly affects your selection odds.
• If your employer is preparing a PERM labor certification, be aware that the prevailing wage determination may come back higher than expected. Discuss with your attorney whether the offered wage needs to be adjusted before recruitment begins.
• If you are an H-1B worker whose current LCA was filed before July 1, your existing prevailing wage obligation does not change mid-cycle. The new data applies only when a new LCA is filed — typically at extension, transfer, or amendment.

Looking Ahead

The annual wage data refresh is one piece of a rapidly shifting landscape for employment-based immigration. The Spring/Summer 2026 Unified Regulatory Agenda also signals that DHS plans to propose new H-1B regulations as early as August 2026, targeting cap-exemption eligibility criteria, third-party placement rules, and employer compliance requirements. Combined with the prevailing wage rule finalization and the PERM recruitment overhaul, employers sponsoring foreign workers face a significantly more complex and costly environment in the second half of 2026.

Attorneys and employers should audit their current and planned filings against the new wage data now, before additional regulatory changes take effect.