This is How Much Software Engineers Make Around The World


software engineers (2)
Source: Hired
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It is a common belief that that software engineers are very well paid. While that being true in most cases, the amount of money that an average software engineer makes varies immensely throughout the world.

A story about a software engineer was featured on Business Insider claiming he made over $3 million a year at Google including salary and bonuses. While this is certainly possible, an analysis of Salary Data available at Glassdoor by ITWorld shows that it is an extreme case. On average a Google software engineer makes slightly over $1 million a year.

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Source: Hired

If around a million is what an engineer at Google makes, how much does an average software engineer around the world makes? That too adjusted with the cost of living. This map below, courtesy of Hired represents a study by their Data Science Team.

Source: Hired

Hired received 280,000 interview requests and job offers from more than 5,000 companies to 45,000 job seekers. Based on this data, the company’s data team determined the average salary for a software engineer in the San Fransisco Bay Area which is $134,000 a year. In any other place in the country, software engineers do not get paid as much. Seattle, however, is close to San Fransisco with an average of $126,000. Boston, Austin, L.A, New York, and Washington D.C are considered to be the tech hubs of the country where a software engineer’s salary ranges between $110,000 and $120,000.

Source: Tech Crunch

The skyrocketing living expenses in Silicon Valley, according to Hired’s lead data scientist Jessica Kirkpatrick make San Fransisco one of the lowest-paying places for software engineers. The analysis suggests that when the cost of living is factored in, making $198,000 in the Bay Area is equivalent to $110,000 that a software engineer in Austin makes. In Melbourne, Australia a software engineer roughly makes seemingly low $107,000 on average, but this is an equivalent of $150,000 in San Fransisco.

Source: Nation of Change

There is also a very increased trend of hiring relocation candidates. The analyst said that 60% of jobs offered in Texas are extended to people outside. Relocated employees are often paid better than locals, particularly in European, Canadian and Asian markets. The study reveals a surprising 57% more earning by relocated employees as compared to the locals.

The study also analyzed a bias in paying salaries based on identity, across different cities. Hired’s data suggested that a black software developer with the same level of expertise as their white peer are receiving a $115,000 a year whereas the white developers receive $125,000.

According to a survey by Indeed.com, about one-fourth of tech sector workers reported discrimination at work due to race, age, gender, religion or sexual orientation. 32 percent Asian and nonwhite employees reported feeling discriminated against, while 29 percent females reported the same.

The Hired report showed another fascinating perspective, revealing that even though black candidates get paid slightly less, they are in a much higher demand. It does not hold true for Latino or Asian candidates, that reportedly face more discrimination.

You can dig deeper into the report here.

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