Last Updated on 2024-10-11
Updated on January 4, 2024
With the rising technological age, the IT industry has seen massive growth. Most processes and solutions are now made available on digital screens. Behind the creation of these technological marvels are the software developers. With this demand, there’s a huge curiosity about the software developer’s salary, especially with their scarcity in the United States.
Because of the scarcity of software developers in the United States, it becomes a challenge for startup business owners to hire them. Why? The law of supply and demand answers that developers here are expensive. So if you’re just at the baby steps of your business and the budget is quite tight, hire from territories where the software developer salary is much lower.
Aside from location, factors such as experience and technology could also impact the rate. Let’s discuss this below.
Software Developer Salary
The software developer salary varies per developer, per location. Some areas in the United States offer higher pay rates than other areas. However, this can also be affected by the developer’s experience, skillset, and position.
Software Developer Salary per Skill
Among the multiple languages available for software development, a PayScale Software Developer Pay survey reveals 5 of the most popular ones: C#, JavaScript, SQL, .NET, and Java. The rate for each skill is different as each has its own level of complexity and uniqueness.
They shared these results for the average software developer salary per skill:
| Rank | Language | Average Salary |
| 1 | C# | $75,087 |
| 2 | JavaScript | $76,792 |
| 3 | SQL | $76,100 |
| 4 | .NET | $75,382 |
| 5 | Java | $79,990 |
Software Developer Salary per Experience
Experience is another important factor in considering the software developer salary. This takes into account the experience in terms of years that the developer is working in the field and is associated with the position prefix they already earned (Senior, Mid, and Junior).
Including tips, bonuses, and overtime pay, entry-level software developers can earn as much as $67,858/year on average. Developers with 1–4 years can earn up to $75,228. Mid-career developers with 5–9 years of experience can earn up to $88,717/year on average. Developers with 10 years of experience or more start at an average of $99,893/ year.
Software Developer Salary per Location
Location can be the most impactful factor for software developer salary. Different economies per location entail that there are also differences when it comes to the cost of labor. In the US, the average pay rate for lead developers ranges from $176–$187 per hour. Aside from the economic state, the country is also experiencing a shortage of developer pool.
Companies opt for offshoring as a solution to the shortage and cost issues brought upon by the high pay rates within the country. Territories such as Eastern Europe and Asia offer lower pay rates compared to America. Developing countries within this territory offer the same software development services with quality output at a much lower rate.
Eastern Europe
Eastern Europe has been a go-to offshoring destination for Western clients. The region is hailed as the “sleeping giant” in technology since the IT industry is rapidly growing due to the available opportunities offered by companies that outsource and/or offshore IT services.
Popular countries in Eastern Europe for offshore software development are Poland, the Czech Republic, Ukraine, Hungary, and Romania. One of the reasons why many companies offshore in Eastern Europe is because of language proficiency. Aside from that, they also have a relatively lower pay rate compared to North American countries. For example, the hourly rates for software developers in Poland and Romania are $35-$55 and $43-$63, respectively.
Asia
In recent years, many Asian countries, especially in the eastern part, have become hotspots for offshoring business processes and IT services. This is due to the growing rate of resources for software development and the IT graduate pool in the region. Among the top countries excelling in providing offshore avenues for foreign companies are India, Thailand, Singapore, China, and the Philippines.
Asian countries have lower pay rates compared to Eastern European countries, which means that they have much lower pay rates relative to the US rate. The hourly rate ranges from $15 to $50, depending on experience and the size of the client company. Software developers in the Philippines have an average annual pay of ₱378,649, approximately $6,800. Compared to US software developer salary ranges, it is approximately 10% of the pay rates for an entry-level developer.
Software Developer Job Description
First of all, let’s get to know the software developers. Software developers are those who create programs and applications. This encompasses all the tasks undergone in software development: documentation, coding, and testing. The product of their work is not only limited to computers but also to other devices applicable per system. Other software developers also develop the systems and networks behind the applications.
Software developers develop, test, and document software for client applications. They may also develop and maintain existing software applications. A bachelor’s degree in related programs is an edge but not always required. They should be compliant with software developer responsibilities and possess basic to advanced skills.
Software Developer Responsibilities
- Work closely with managers, testers, and fellow developers to create optimum-quality software
- Develop user-friendly applications for clients and customers
- Document the tasks and processes during the development
- Ensure that software programs are working properly and functions are as defined in the system requirements
- Test and monitor software for issues, bug tracking, and bug fixes
Experience, Skill, or Location?
The more skills and adeptness in software development, the higher the pay. As with experience, developers with long years in the industry will have a higher salary. The biggest difference that makes the salary comparison is the location.
Yes, seniority level and skillsets can determine a developer’s salary, but these things can be acquired in different locations. And in those locations, the economies are different. Take into consideration that just because you’re paying at a lower cost in a different country doesn’t mean that the standard and quality have to be lowered, too.
If you are a startup company and software developer salary poses such a great fraction of your costs, why not try offshoring?
Hello! We are Full Scale.
With Full Scale, you can offshore a development team to work on your website and/or software products. We do all the recruitment and hiring processes by only choosing top-tier developers who are ready to work on projects.
We have software developers who are skilled and experienced in the field, most of whom are at the senior level but are willing to work at an agreeable cost. They are skilled in multiple software development tools and processes. Your inquiries, messages, and applications are welcome!
Just hit us up with a message, and we’ll take it from there.
Matt Watson is a serial tech entrepreneur who has started four companies and had a nine-figure exit. He was the founder and CTO of VinSolutions, the #1 CRM software used in today’s automotive industry. He has over twenty years of experience working as a tech CTO and building cutting-edge SaaS solutions.
As the CEO of Full Scale, he has helped over 100 tech companies build their software services and development teams. Full Scale specializes in helping tech companies grow by augmenting their in-house teams with software development talent from the Philippines.
Matt hosts Startup Hustle, a top podcast about entrepreneurship with over 6 million downloads. He has a wealth of knowledge about startups and business from his personal experience and from interviewing hundreds of other entrepreneurs.
