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In the ever-evolving landscape of the tech industry, the role of a Software Engineer stands out as both crucial and dynamic. These professionals are not just coders; they are problem-solvers and innovators, driving forward the boundaries of technology and digital experiences. As such, understanding the intricacies of the Software Engineer salary is more than just a curiosity – it’s an insight into the value and demand of these skilled individuals in the market. In this comprehensive guide, we delve into the various factors that influence a Software Engineer’s compensation, shedding light on what one can expect in this challenging yet rewarding field.
Software Engineering is a career that blends technical expertise with creative problem-solving. Whether they are developing new applications, optimizing existing systems, or pioneering advancements in areas like AI and machine learning, Software Engineers play a pivotal role in shaping our digital world. Accordingly, their compensation reflects a combination of skill, experience, and the unique challenges they face. This guide aims to explore these aspects, providing a detailed look at the salaries within this dynamic profession.
Navigating the world of Software Engineer salaries can be complex, with numerous factors influencing earning potential. From geographic location, and industry demand, to the level of experience and expertise, each aspect plays a critical role in shaping the financial rewards of these tech professionals. Through this guide, we aim to offer clarity and a deeper understanding of what drives Software Engineer salaries, equipping you with the knowledge to make informed career decisions in this vibrant and ever-changing industry.
If you want to compare the Software Engineer salary with the salary of a Technical Program Manager or a Product Manager you can also look at my other posts:
- Product Manager Salary: A Comprehensive Guide
- Technical Program Manager Salary: A Comprehensive Guide
Computer programming is pretty much guaranteed income. I’m good at it, and I like it.
Andy Weir
- The Software Engineer Role
- Components of a Software Engineer Salary
- The Importance of Salary Negotiations
- Key Factors That Influence Software Engineer Salaries
- Company-Specific Salaries for Software Engineers
- Companies Paying More Than $300k For Senior Software Engineers
- Software Engineer Salary: Top Pay by Levels
- Salary Comparison: SWE vs PM vs TPM vs EM vs PMM
- Conclusion
The Software Engineer Role
Software engineering is not just about programming; it’s about solving problems and creating value through technology. At its core, software engineering involves designing, developing, testing, and maintaining software systems. These systems range from mobile apps to complex, cloud-based infrastructures. In this rapidly evolving field, a software engineer’s role is pivotal in shaping the digital landscape.
Technical skills form the backbone of this profession. Proficiency in coding languages like Java, Python, or C++ is just the beginning. Software engineers also need a strong understanding of algorithmic thinking, data structures, and system design. In addition, staying abreast of emerging technologies such as machine learning and blockchain is increasingly important.
The role extends beyond coding. Software engineers collaborate with cross-functional teams, requiring strong communication skills. They must translate complex technical concepts into understandable language for stakeholders. Problem-solving skills are crucial, as engineers often face unique challenges that require innovative solutions.
Finally, the career trajectory of a software engineer is diverse and dynamic. From entry-level positions to senior roles, each step on the career ladder presents new responsibilities and opportunities for growth. Junior engineers may focus more on coding, while senior positions involve architectural decision-making and strategic planning. This progression offers a rich and rewarding career path for those passionate about technology.
Components of a Software Engineer Salary
When discussing software engineer salaries, it’s important to look beyond the base salary to understand the average total compensation. This compensation often includes several key components that can significantly enhance a software engineer’s earning potential, especially in high-demand regions like San Francisco or New York.
- Base Salary: This is the foundational income for software engineers, which varies based on factors like location, years of experience, and level of education. For example, an entry-level software engineer in smaller companies might start with a lower base salary compared to their counterparts in big tech companies.
- Stock Options: Many tech companies, especially in the U.S., offer stock options as part of the compensation package. These stocks, which vest over a period, align the employee’s interests with the company’s performance. In tech hubs, stock options can significantly increase the total compensation, often making up a large part of a software engineer’s earnings.
- Bonuses: Additional cash compensation in the form of performance bonuses or profit sharing can augment a software engineer’s income. These bonuses are often tied to the individual’s or company’s performance and can vary from year to year.
- Benefits: While not directly part of the salary, benefits like healthcare, retirement plans, and paid time off contribute to the overall compensation package. In some cases, particularly with larger companies, these benefits can add substantial value to the job offer.
Understanding these components is crucial for software engineers, as it offers a clearer picture of the financial rewards associated with different roles and companies. This knowledge is especially important when comparing job offers or negotiating salaries.
The Importance of Salary Negotiations
Salary negotiations are a critical step in maximizing total compensation for software engineers. Whether you are a junior software engineer just starting out or a seasoned professional like a lead software engineer or principal software engineer, effectively negotiating your salary can make a significant difference.
- Research and Preparation: Before entering negotiations, it’s essential to use tools like a salary calculator to understand the average salaries and total compensation for your role and experience level. Knowledge of the average software engineer salary, especially in your specific field of software engineering, is a powerful tool.
- Understanding Your Value: Software engineers should assess their own skills, including necessary skills and any advanced degrees, to understand their market value. This includes considering your experience level, any specialized skills in high-demand areas, and contributions to significant projects or teams.
- Articulating Your Case: When negotiating, be prepared to clearly articulate your value, citing specific examples of your contributions, such as solving real problems, working in an iterative delivery environment, or being an integral part of an agile team.
- Consider the Whole Package: Remember, negotiations are not just about the base salary. Consider other aspects like stock options, additional cash compensation, and benefits. In some cases, negotiating for more stock options or better benefits can be more valuable in the long term, especially in high-cost-of-living areas.
Effective salary negotiations require a good understanding of the job market, the value you bring to the role, and the standard compensation packages in the software engineering field. Approaching these discussions well-prepared can lead to a more rewarding and satisfying software engineering job.
Key Factors That Influence Software Engineer Salaries
Understanding the various factors that impact software engineer salaries, including the average annual salary, is crucial for both job seekers and those looking to advance in their careers.
Location
The influence of geographical location, such as tech hubs like Silicon Valley and New York, on a software engineer’s salary, including both base salary and stock options, is profound. Major cities offer higher salaries, reflecting the cost of living and the concentration of technology companies. However, opportunities are not limited to these areas. With the rise of remote work, cities like Los Angeles and emerging tech regions are offering competitive salaries.
International locations present varied scenarios. Countries with burgeoning tech industries offer good salaries, though these may differ from those in the U.S. However, when adjusted for the cost of living, these salaries can be competitive. Additionally, companies in these regions are increasingly participating in the global market.
Years of Experience
Experience significantly determines a software engineer’s salary. Entry-level engineers often start with lower salaries, which increase with experience. Mid-career engineers see a substantial increase in their earning potential, reflecting their growing expertise.
Senior-level engineers command the highest salaries, reflecting their extensive experience and expertise in specialized areas. Their roles often transcend coding to include strategic planning and leading projects or teams.
Technical Expertise
Specialized skills, such as expertise in high-demand areas like Artificial Intelligence and Machine Learning, influence earning potential. Full-stack development skills also enhance earning potential, making engineers valuable assets to their teams.
Staying current with new technologies and tools is crucial. Continuous learning and skill development, complemented by soft skills, indirectly influence salary prospects.
Industry Demand
Software engineers are in demand across various sectors. Industries undergoing digital transformation offer competitive salaries to attract skilled engineers. Emerging technologies create new opportunities, leading to higher salaries for specialists.
Economic factors and industry trends also play a role. Engineers in roles that directly contribute to revenue generation or significant cost savings can negotiate higher salaries.
Previous Employment
Experience at well-regarded tech companies or successful startups enhances a software engineer’s marketability and often leads to higher salary offers. This experience suggests rigorous training and exposure to best practices.
Startups offer unique experiences that can be appealing to potential employers, often translating into better salary offers. The network and reputation gained from previous employment matter.
Company-Specific Salaries for Software Engineers
Corporate compensation data is a very well-kept secret in the industry. Companies do not share their compensation ranges and employees do not typically publish their own salaries. So, it is very difficult to compare compensation data between different companies.
Levels.fyi is a website that allows employees to provide their compensation data anonymously. So far (end of 2019), ~17k people from multiple companies have done so. This data includes salary, stock, and bonuses. In this post, I’ll be showing some of the data from that website.
In this section, I’ve included compensation data for Software Engineers working at:
- Apple
- Amazon
- Netflix
- Microsoft
- Uber
- Lyft
- Airbnb
For each company, there are 3 types of data:
- Average compensation by level split into base, stock, and bonus
- Trajectory chart with the total average compensation for each level
- Variance in compensation for each level
You can find the same graphs for the companies below, as well as additional companies on the “Charts” page in Levels.fyi.
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| E3 (Entry Level) | $195K | $142K | $42K | $11K |
| E4 | $301K | $178K | $99K | $24K |
| E5 | $394K | $208K | $160K | $27K |
| E6 | $618K | $248K | $332K | $39K |
| E7 | $918K | $292K | $589K | $37K |
| E8 | $1.71M | $335K | $1.3M | $78K |
| E9 | $2.53M | $364K | $2.01M | $152K |
Apple
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| ICT2 Junior Software Engineer(Entry Level) | $150K | $122K | $24K | $4K |
| ICT3 Software Engineer | $254K | $167K | $70K | $17K |
| ICT4 Senior Software Engineer | $345K | $200K | $122K | $22K |
| ICT5 | $479K | $247K | $202K | $30K |
| ICT6 | $819K | $306K | $444K | $69K |
| Distinguished Engineer | $ — | $ — | $ — | $ — |
| Senior Distinguished Engineer | $ — | $ — | $ — | $ — |
| Engineering Fellow | $ — | $ — | $ — | $ — |
Amazon
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| SDE I L4(Entry Level) | $176K | $138K | $26K | $12K |
| SDE II L5 | $254K | $172K | $76K | $6K |
| SDE III L6 | $362K | $205K | $155K | $2K |
| Principal SDE L7 | $559K | $249K | $310K | $0 |
| Senior Principal SDE L8 | $1.02M | $307K | $669K | $43K |
| Distinguished Engineer L10 | $ — | $ — | $ — | $ — |
Netflix
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| L3 (Entry Level) | $220K | $211K | $0 | $8K |
| L4 | $337K | $336K | $1K | $0 |
| L5 | $514K | $514K | $444 | $0 |
| L6 | $667K | $667K | $0 | $0 |
| L7 | $ — | $ — | $ — | $ — |
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| L3 SWE II(Entry Level) | $183K | $142K | $33K | $8K |
| L4 SWE III | $266K | $173K | $75K | $18K |
| L5 Senior SWE | $371K | $207K | $133K | $32K |
| L6 Staff SWE | $505K | $245K | $221K | $38K |
| L7 Senior Staff SWE | $716K | $293K | $362K | $61K |
| L8 Principal Engineer | $1.15M | $333K | $704K | $117K |
| L9 Distinguished Engineer | $ — | $ — | $ — | $ — |
| L10 Google Fellow | $ — | $ — | $ — | $ — |
Microsoft
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| SDE 59(Entry Level) | $159K | $114K | $25K | $20K |
| 60 | $163K | $126K | $26K | $11K |
| SDE II 61 | $190K | $145K | $28K | $17K |
| 62 | $204K | $159K | $28K | $16K |
| Senior SDE 63 | $236K | $181K | $34K | $21K |
| 64 | $261K | $193K | $43K | $25K |
| Principal SDE 65 | $327K | $211K | $81K | $35K |
| 66 | $390K | $228K | $113K | $46K |
| 67 | $527K | $250K | $210K | $66K |
| Partner 68 | $785K | $284K | $397K | $104K |
| 69 | $1.14M | $292K | $691K | $154K |
| 70 Distinguished Engineer | $ — | $ — | $ — | $ — |
| 80 Technical Fellow | $ — | $ — | $ — | $ — |
Uber
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| Software Engineer I3(Entry Level) | $168K | $134K | $26K | $9K |
| Software Engineer II4 | $272K | $170K | $86K | $16K |
| Senior Software Engineer5a | $474K | $205K | $240K | $29K |
| Staff Software Engineer5b | $661K | $239K | $391K | $30K |
| Senior Staff Software Engineer6 | $877K | $268K | $551K | $56K |
| Principal Engineer7 | $ — | $ — | $ — | $ — |
| Distinguished Engineer8 | $ — | $ — | $ — | $ — |
| Uber EngineerFellow | $ — | $ — | $ — | $ — |
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| Apprentice Software EngineerL2(Entry Level) | $134K | $106K | $22K | $6K |
| Software EngineerL3 | $212K | $154K | $44K | $14K |
| Senior Software EngineerL4 | $305K | $192K | $100K | $13K |
| Staff Software EngineerL5 | $439K | $227K | $183K | $29K |
| Senior Staff Software EngineerL6 | $674K | $280K | $351K | $44K |
| Principal Staff Software EngineerL7 | $1.03M | $327K | $631K | $73K |
| Distinguished Engineer | $ — | $ — | $ — | $ — |
| Technical Fellow | $ — | $ — | $ — | $ — |
Lyft
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| T3Software Engineer(Entry Level) | $203K | $135K | $61K | $8K |
| T4 | $256K | $161K | $95K | $738 |
| T5 | $313K | $186K | $126K | $0 |
| T6Staff Engineer | $497K | $232K | $264K | $0 |
| T7 | $848K | $244K | $603K | $833 |
| T8Principal Engineer | $ — | $ — | $ — | $ — |
| T9 | $ — | $ — | $ — | $ — |
Airbnb
| Level Name | Total | Base | Stock (/yr) | Bonus |
|---|---|---|---|---|
| G7Software Engineer(Entry Level) | $208K | $131K | $52K | $25K |
| G8Software Engineer | $321K | $183K | $122K | $17K |
| G9Senior Software Engineer | $474K | $222K | $227K | $25K |
| G10Staff Software Engineer | $630K | $258K | $327K | $45K |
| G11Senior Staff Software Engineer | $766K | $279K | $423K | $64K |
| G12Principal Software Engineer | $ — | $ — | $ — | $ — |
| G13Distinguished Engineer | $ — | $ — | $ — | $ — |
| G14Fellow | $ — | $ — | $ — | $ — |
Software Engineer Salary Comparison: Who Pays More?
The following matrix includes comparative data for all companies and levels in one place.
| Apple | Amazon | Netflix | Microsoft | Uber | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Software Engineer (Entry Level) | $195K | $150K | $176K | $220K | $183K | $159K(L59) $163K (L60) | $168K | $134K | $203K | $208K |
| Software Engineer 2 | $301K | $254K | $254K | $337K | $266K | $190K(L61) $204K (L62) | $272K | $212K | $256K | $321K |
| Senior Software Engineer | $394K | $345K | $362K | $514K | $371K | $236K (L63) $261K (L64) | $474K | $305K | $313K | $474K |
| Staff Software Engineer | $618K | $479K | $559K | $667K | $505K | $327K (L65) $390K (L66) $527K (L67) | $661K | $439K | $497K | $630K |
| Senior Staff Software Engineer | $918K | $819K | $1.02M | $ — | $716K | $785K (L68) $1.15M (L69) | $877K | $674K | $848K | $766K |
| Principal Software Engineer | $1.71M | $ — | $ — | $1.15M | $ — | $ — | $1.03M | $ — | $ — | |
| Distinguished Software Engineer | $2.53M | $ — | $ — | $ — | $ — | $ — | $ — | $ — | ||
| Technical Fellow | $ — | $ — | $ — | $ — | $ — |
Companies Paying More Than $300k For Senior Software Engineers
Using the data from https://levels.fyi, we can create a list of companies that pay more than $300k for Senior Software Engineers. This list appeared first in the TeamBlind forum.
| Company | Level | Compensation |
| L5 | 498k | |
| Slack | G05 | 470k |
| Adobe | 5.5 | 455k |
| Netflix | Senior | 454k |
| Airbnb | L5 | 444k |
| Staff | 429k | |
| Splunk | P4 | 425k |
| Lyft | T5 | 421k |
| Stripe | L3 | 421k |
| Tesla | P4 | 407k |
| Snap | L4 | 402k |
| Two Sigma | L4 | 399k |
| Rubrik | L5 | 370k |
| E5 | 365k | |
| Uber | 5a | 364k |
| Databricks | L5 | 360k |
| Workday | P5 | 353k |
| L5 | 350k | |
| Dropbox | IC3 | 342k |
| Square | L6 | 335k |
| Cloudera | IC4 | 332k |
| VMWare | Staff 2 | 332k |
| Cisco | TL2 | 331k |
| L6 | 325k | |
| Zillow | P5 | 323k |
| Tableau | Senior | 321k |
| Docusign | P5 | 320k |
| Apple | ICT4 | 312k |
| Amazon | L6 | 308k |
| Doordash | E5 | 305k |
| Instacart | Senior | 303k |
| Nvidia | IC5 | 302k |
| Qualtrics | L5 | 302k |
| Roku | Level 4 | 300-450k |
One noteworthy absence from the above list is Microsoft. Indeed, in order for Microsoft employees to reach $300k of total compensation, they need to reach the Principal band, i.e. level 65 or even 66.
Software Engineer Salary: Top Pay by Levels
Levels.fyi has also shared a report showing the top 5 highest-paying employers for each level. Compensation figures that follow reflect the median total yearly compensation including salary, stock, and bonuses.
Entry-Level Engineer (I): 0-2 years of experience
Engineer (II): 2-5 years of experience
Senior Engineer (III): 5+ years of experience
Staff Engineer (IV): 10+ years of experience
Principal Engineer (V): 15+ years of experience
Salary Comparison: SWE vs PM vs TPM vs EM vs PMM
In most companies, the compensation for Software Engineering Managers is approximately equal to that for Software Engineers at the same level. The relative compensation for the other ladders depends on each company. As you go down the list with the roles for each company, there is a 5-10% decrease in total compensation, assuming the same level and same performance (e.g. the total compensation for a Technical Program Manager at Google is 5-10% higher than the total compensation of a Program Manager at Google).
- Amazon
- Software Development Manager and Software Engineer
- Technical Program Manager and Product Manager – Technical
- Product Manager
- Product Marketing Manager
- Google
- Technical Lead Manager, Engineering Manager, Software Engineer
- Product Manager
- Technical Program Manager
- Program Manager
- Product Marketing Manager
- Facebook
- Engineering Manager
- Software Engineer
- Product Manager
- Technical Program Manager
- Product Marketing Manager
- Microsoft
- Engineering Manager
- Software Engineer and Program Manager
- Product Marketing Manager
For more information you can also look at my other posts:
- Product Manager Salary: A Comprehensive Guide
- Technical Program Manager Salary: A Comprehensive Guide
Conclusion
Understanding the dynamics of the Software Engineer salary, including the average salary and salary ranges, is a critical part of navigating your software engineering career path. In the United States of America, where the demand for skilled software engineers is consistently high, particularly in the technology space, this knowledge is invaluable. For software developers, including those working on software applications and mobile apps, and especially for those in high-demand areas such as the healthcare industry or user experience, being aware of these salary trends is crucial.
The journey from being part of a big group of makers tackling complex business problems to potentially becoming one of the highest-paid software engineers requires understanding a multitude of factors. These include the average additional cash compensation, the value of hands-on experience, and the significance of being an integral member of an engineering team. The U.S. Bureau of Labor Statistics and various job postings provide valuable insights into these aspects. Whether you are a Senior Software Engineer or an entry-level programmer, recognizing the impact of your year of experience, your contribution to software products, and the current role you play within the vast software industry is essential. As technology evolves and software engineering salaries reflect these changes, it’s a good time for software engineers at every level to assess their position and consider their next step in this exciting field.
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Where does solutions architect/sales engineer and technical account manager roles rank compared to the the compensation data you listed?
Hi David,
Unfortunately, I don’t know about the relative compensation for Solution Architects, Sales Engineers and Technical Account Managers 🙁