2023 Software Developer Salaries: Essential Data and Trends

May 30, 2023 • Hiring Developers

By Jordan Plummeridge

In 2023, the demand for software developers is only increasing. Indeed, according to the U.S. Bureau of Labor Statistics, employment of software developers is expected to grow by around 26% by the end of the decade. It’s only natural then, that they’d want all the right information at their fingertips so that they can make informed choices.

Today we’re going to share all you need to know about software development salaries. We’ll discover current salary data, factors that can affect salary ranges, regional variations, and more. We’ll then finish up by providing valuable insight for recruiters on what companies can do to attract and retain top software development talent. All the essential data you need to navigate the ever-changing tech landscape.

But first, before jumping into the topic, let’s take a quick look at the importance of including salary information for both applicants AND recruiters.

The Importance of Salary Transparency

It’s no secret that pay transparency is a hot topic in the employment space today. But what may not be clear is the benefits it brings.

For applicants, readily available salary information fosters trust. It also helps motivate top talent who might not have been interested otherwise.

For employers, it can improve employee retention – indeed, employees are more likely to stay if they know what they’re getting into. Not only that, but it can also assist in their recruiting efforts. Providing detailed pay information helps screen out applicants who wouldn’t be interested in the first place.

All great things for both sides of the equation. Let’s also not forget that pay transparency is rapidly becoming the law in many countries across the globe. In California, employers are required to include salary ranges in every job posting. Meanwhile, the European Parliament has adopted the European Commission’s legislative proposal on pay transparency. This mandates that employers must include a salary range in the job post or before the interview.

This is all without even bringing up the topic of gender equality and diversity and inclusion. The benefits here are clear, with research indicating that wage transparency is helping to reduce pay inequalities across the board. Indeed, by providing all candidates with the same information, they are evaluated on their skills and qualifications, not on their salary expectations.

Salary Data for Top Software Developer Roles

Now that we’ve seen the why, let’s take a look at some of the latest salary data for different types of developers.

Front-end developers

Junior: $67,500
Senior: $127,882
Median yearly salary: $107,454
Range: $87,045 – $140,000

Back-end developers

Junior: $77,750
Senior: $135,000
Median yearly salary: $118,501
Range: $96,637 – $155,000

Full-stack web developers

Junior: $80,000
Senior: $130,000
Median yearly salary: $105,000
Range: $84,982 – $136,500

Mobile developers

Median yearly salary: $117,915
Range: $98,176 – $154,102

Python developers

Median yearly salary: $123,148
Range: $102,459 – $156,000

Java developers

Median yearly salary: $117,000
Range: $99,523 – $147,968

SQL developers

Median yearly salary: $107,254
Range: $91,341 – $135,000

React developers

Median yearly salary: $121,129
Range: $102,319 – $155,000

Source: Talent.com

What can we make of this information? Well, first, is that developer salaries are increasing across the board. Indeed, according to Stack Overflow’s survey, they increased by as much as 23% between 2021 and 2022. This, coupled with the increased demand we mentioned earlier, paints a positive picture for the industry.

Some more surprising figures? Big Data Engineers can command the highest salary, at a healthy $136k annually. Moreover, JavaScript tops the list of in-demand languages based on our research. As for technical positions, back-end developers take the cake in terms of demand.

Lastly, it’s important to mention the current global context and its impact on developer salaries. We are, of course, referring to the mass tech layoffs. While salaries are likely to deflate, the job market still remains very strong, with some workers even ending up with higher wages than before. It remains to be seen what the rest of 2023 has in store for the tech industry.

Factors that Affect Software Developer Salaries

With this key data in mind, let’s now take a look at some factors that can affect developer pay. These will give you a clearer idea of why salaries appear to vary drastically across the sector.

Experience

Seniority is, of course, an obvious one. It’s simple: the longer you’ve been in the industry, the more you’re likely to be paid. This bears out in the data, with experienced senior developers (i.e. those with 3–7 years’ experience as per codeinstitute) often earning twice their junior counterparts.

Skills

A developer’s skills also make a great deal of difference in their salary. As mentioned above, this includes which language/framework they are proficient in. But it also includes soft skills! Communication skills, accountability, and effective time management are all becoming increasingly valued in the IT sector, particularly for those in managerial positions. And it’s not particularly surprising when soft skills translate into better business outcomes.

Location

We also need to take a developer’s location into account. Indeed, regional variations can be the difference between a very generous salary and a meagre one. Looking at data from around the world can be very insightful here. As you might expect, North America leads the way, with an average salary of $95,879. With the number of tech start-ups sprouting up, the presence of The Big Five (or FAAMG – Facebook, Amazon, Apple, Microsoft, and Google), and, well… Silicon Valley, it’s clear there is a lot of money in it.

Google is known to offer some of the most competitive salaries in the industry

As for Latin America, the highest salaries are found in Panama at a healthy median average of $50k according to Statista. This then steeply declines, with Mexico at $12k and Argentina at $4k. Overall, average monthly income ranges from $1,166 to $3,440. Nevertheless, many cities, such as São Paulo in Brazil, and Mexico City, are beginning to be considered tech hubs and are attracting a lot of investment.

Elsewhere, in Europe, numerous countries make the top ten. This includes Switzerland, the United Kingdom, Sweden, Germany, and France. In addition, many of the world’s leading tech giants are based in Europe, from Spotify to Deliveroo. Of course, high salaries tend to often be centralised in major cities such as London, Paris, and Berlin.

Heading eastward to Asia, several countries are among the highest paying. A software engineer can expect to earn $41,864 in Singapore, for example. Some of the largest tech companies are found in Asia, including Samsung and LG Electronics in South Korea, and Foxconn in Taiwan. At the same time, some of the lowest-paying countries are also found here, such as China at $23,790 and India at $7,725.

It’s important, however, to take all of this data with a pinch of salt given that the cost of living can dramatically alter how much you are left with after paying for basic living expenses.

Industry

There is also the matter of which area of the tech sector a developer is operating in. Here, it’s all about supply and demand. Indeed, some of the fastest-growing areas, such as FinTech, Cybersecurity, AI, and Healthcare technology offer above-average salaries. Take for example a Financial Software Developer in the US. They can expect an average yearly income of $126,262. At the rate at which some of these sectors are growing – some spurred by the pandemic, it’s easy to see why.

Company Size

The last factor that can affect a software developer’s salary is how large the company is. This is fairly self-explanatory. The larger the company, the higher the salary package. For example, did you know that the average salary for a front-end developer at Google amounts to over $200k? Contrast this with a medium-sized company (a company that has between 100 and 499 employees), and the results are rather different. InterDigital, a medium-sized company in wireless and video technologies, offer $160,295 per year for the same position.

How Companies Can Attract and Retain Top Software Development Talent

So, we’ve taken an in-depth look at the latest salary information and factors that may affect them. But how then do companies go about attracting tech talent in the first place? This section is primarily aimed at recruiters so feel free to skip to the end if you’re a software developer.

Competitive Salaries

The first thing companies can do to attract the crème de la crème is to, you guessed it, offer competitive salaries. After all, we wouldn’t have come all this way without bringing salary into the equation. As we’ve seen, tech salaries are on the rise worldwide and this isn’t expected to change any time soon. This means that you need to make sure you follow suit as well. This may take salary benchmarking to get right. And don’t forget to make your salary information publicly available. An effective way to ensure that those that apply will be in it for the long haul.

Benefits and Perks

What you can offer in addition to a generous salary is equally important. Employees are increasingly taking their total compensation, that is, their base salary + benefits such as bonuses, insurance, paid time off, gym memberships, etc., into account. And it isn’t unexpected given that this figure can end up being of high monetary value. They can also simply make your company look like an attractive place to work. By showing you are invested in employees’ health and quality of life, you’re more likely to both attract talent and retain it in the long term. Consider that 75% of employees report that they are more likely to stay with their employer because of their employee benefits programme (Willis Towers Watson).

Growth Opportunities

Showing you value your employees’ health and wellness is all well and good, but have you also shown that you take their long-term development seriously? After all, a lack of career growth opportunities is the second-most common reason employees leave their jobs according to Pew Research Center. Fret not, however, as there are many ways to go about this, from covering the costs of training programmes, to job rotation schemes, mentoring partnerships, and more. And remember, retention is not the only benefit to furthering your employees’ development. They also tend to perform better, be more motivated, and ultimately, increase your bottom line.

Company Culture

Last but not least, you need to work on your company culture. A positive company culture is not only a great way of attracting talent during the hiring phase but also an excellent way to keep them on board. But how exactly do you go about improving this, at the best of times, vague concept? Well, in fact, here you will use many of the same strategies we’ve discussed in other parts of the article. That means being transparent and fostering trust, cultivating employee relationships and their growth, and, perhaps most importantly, sharing your overall vision for the company. In the end, employees want to know how their efforts fit into the bigger picture.

Retention in Action: The Trade Desk

This multinational tech company clearly excels in the benefits and perks arena. When employees hit anniversary milestones they receive a Blueboard reward to use to their liking, whether for a hot air balloon ride or a virtual-cooking class. They are obviously doing something right as they have appeared in Fortune’s 100 Best Medium Workplaces numerous times, most recently in 2021.

Get Ahead of the Curve

We’ve now reached the end of our foray into top software developer roles. Along the way, you’ve learnt about the latest trends (which are, we can safely say, exceedingly positive for the tech industry), seen which factors can influence salaries around the world, and discovered how companies can attract and retain top talent. But what next? Our State of Tech Hiring survey will give you all the information you need to understand where the industry is heading, and provide valuable data for both developers and recruiters.