Where Do Software Engineers Get Paid the Most?

1. United States 🇺🇸

Software engineers in the US earn a median annual salary of $124,200.

The United States is well known for offering the highest-paying IT salaries in the world. And it’s not just in the Bay Area. Companies in Seattle, New York, Austin, Chicago, and Dallas also offer some of the highest-paying salaries in the world, comparable with the likes of London and Zurich.  Although the US is still the preferred destination for software engineers around the world, there have been some major changes in the market that are worth noting. Most notably, mass layoffs from the tech sector (including FAANG), lower salaries (even for senior developers), and the already-established hustle culture should make software engineers think twice before heading to the US. 

You know the saying… “Americans live to work, Europeans work to live.” Salaries are outstanding in the US, but it comes at a cost. Work-life balance in the US falls behind compared to Europe. In the US, startup workers and even billionaire owners rarely put 9-5 hours like it could happen in Stockholm or Copenhagen. Also, work security in tech seems to be at a weak point with the wave of layoffs. Still, the US economy keeps adding more and more jobs, so being laid off is not a dead end.

Work-Life Balance Comparison: USA vs EU →

Now, if you think money can compensate for long working hours and dwindling job security, the US is a good destination. Some salaries are even higher than reported here. For example, the Stack Overflow survey of 2023 demonstrated that being a backend developer in the US is one of the best-paying jobs in tech, with salaries above $160,000 per year. But these salaries are only for a tiny percentile of software developers. Some senior developers are reporting lower salaries compared to the post-pandemic boom, with some taking a 3% or 9% cut year-on-year, and that doesn’t account for inflation.

The cities with the best salaries for software engineers are San Francisco and Santa Clara, CA, both part of Silicon Valley. Those salaries can reach $160,000 per year, which is well above New York City, which has an average salary of $146,000. Seattle comes in right after with $136,000. Austin, Chicago, the Dallas–Fort Worth metropolitan region and Houston come right behind, with salaries ranging from $130,000 to $95,000. Silicon Valley pays the best, but there’s a whole world out there (in the US). It’s still one of the best countries for software engineers.

2. Switzerland 🇨🇭

Software engineers in Switzerland earn around €100,000 a year. 

Where do software engineers make the most money? Switzerland is a sleeper when it comes to opportunities for software engineers. It’s well-regarded for its very high standard of living, for its natural beauty, for being one of the safest countries in the world, and for paying excellent salaries that make up for the very high cost of living (a chicken sandwich in Geneva might cost 80% more than in Dallas). And Geneva is not their most expensive hub — that’s Zurich, dubbed the most expensive city in the world.

But even if it’s world-renowned for all these reasons, it’s not exactly a typical software engineering location. Switzerland lures skilled software engineers with high salaries (easily exceeding €100,000!) while keeping an attractive, and ultimately European, work-life balance. The demand for workers is high, but competition can be gruff, so much that juniors should not consider Switzerland. This country is only for experienced professionals. It’s expensive and immigration is very difficult unless your skills are in demand, and unless you can prove your experience. Only come to Switzerland if you have a strong resume to stand by you. On the upside, many companies prioritise a 40-hour workweek, and over half of IT professionals report achieving a good balance. 

Also, keep in mind, that the high wages come with a high cost of living, so factor that in while evaluating the option. Renting a studio apartment in Zurich’s city centre can cost up to 50% more than renting one in Dallas. But purchasing power in the Swiss city is still around 5% stronger than in Texas, which tells how well-balanced the Swiss cost of living is with their uncommonly high standard of living.

3. Israel 🇮🇱

Software engineers in Israel earn almost €70,000 a year. It’s one of the highest salaries for software engineers in the world.

Israel relies on the tech sector. The high-tech sector contributes 18% to local GDP, making it their largest industry by economic output. Tech comprises half of the country’s exports, which means the sector attracts foreign currency like no other — and this could explain the good salaries. About one in seven of all employees work in the tech sector and in tech jobs in other sectors. This concentration is not so far from Silicon Valley’s (where one in four workers are in tech).

The startup scene in Israel is worth $120 billion, according to reports. Tel Aviv is the seventh-largest startup ecosystem in the world and has the highest number of startups per person in any country, with almost 3,000 in Tel Aviv alone, of which around 30 are already unicorns. The government actively props up the scene with stimulus packages and pro-tech policies. It’s also a cybersecurity hub, big data, an AI hub. Waze, for example, was founded almost 20 years ago near Tel Aviv, and represented one of the first widespread cases of AI and big data for end users.

Since there is so much cash from investors and so much cash brought on by exports, software engineers can expect some of the best salaries in the world. It’s not only startup-driven, though. Israel hosts R&D centres for large tech companies like Amazon, Apple, Cisco, SAP or Meta.

In Israel, work-life balance can be a double-edged sword. The fast-paced, startup-driven business environment often encourages longer hours and dedication. The “hustle culture” is widespread and many engineers, notably from the cybersecurity sector in Tel Aviv, report that burnout is very common.

4. Australia 🇦🇺

Software engineers in Australia earn around €67,000 a year ($110,000 AUD).

Australia is a very sought-for location because it has plenty of cities with good weather, a high standard of living, and salaries for software engineers that are even above some German wages. Even if investment in tech startups in Australia fell in 2023, there were almost 500 deals, including Employment Hero’s quarter-billion-dollar funding round. This cash influx results in more opportunities for software workers, who can also rely on well-established tech companies such as Canva, Atlassian, or Procreate to seek jobs.

Australia has traditionally welcomed qualified workers from abroad to fill the talent gaps, and software engineers are just as in demand. In fact, more Europeans are moving to Australia for tech work than the other way around. Still, it’s not only Europeans who’re choosing to settle Down Under. According to industry reports, around a third of tech workers speak a language other than English, making it the most culturally diverse sector in the country.

In Australia, and in contrast to the US, tech jobs are also more secure than other occupations. The rate of people who no longer work after eight years was around 5% lower in tech than in other Australian high-paying industries. This makes it one of the best countries for software engineers.

Even though almost half the workers in the Australian tech industry don’t have a university degree, immigrating engineers who request a visa are expected to have one and to pass an English exam and score a certain number of points. You can earn points by many means, but the most important is experience.

Australia has very strict immigration policies, but a company sponsorship could help you settle down there. For example, a software engineer with 2+ years experience can apply for Australia’s Skilled Independent visa (Subclass 189) but may need higher points (3-8+ years experience) for a stronger application. So consider internal company transfer for temporary residency followed by permanent residency as a pathway to staying in Australia.

 However, like many attractive hubs, the cost of living in cities like Melbourne and Sydney is extremely high — even higher than in certain European countries. Despite what Mercer claims, the cost of living in Australia has skyrocketed to 2-3x what it was in 2019, depending on the city.

5. Denmark 🇩🇰

Software engineers in Denmark earn around €66,000 per year.

Denmark’s recent hits have been in pharma or the movies, but the tech industry in Denmark also enjoys steady growth, with opportunities in major cities like Copenhagen and Aarhus taking advantage of recent graduates. Sources estimate that Danish software companies will drive an excess revenue of almost $4 billion in 2024. 

There are plenty of sectors in the tech industry that software engineers can consider. Tech giants like IBM, Microsoft, and SAP have set up innovation and development hubs in Denmark. Some tech “newcomers,” like Zendesk or Trustpilot, are some successful Danish tech companies that specialise in business solution development. In fact, around 7% of the tech investment deals that end up being unicorns come from Nordic countries.

When seeking employment, software engineers can look into other Danish tech sectors that are not exactly IT. Cleantech is also a growing tech sector in Denmark. Environment-related technologies accounted for a quarter of Danish patents in 2018. It’s also the highest share in the OECD. The Danes are known for inventing tech stuff, as they came up with C++ and C#

Software engineers are in demand in Denmark, and the government is making it easier for international talent to get work permits (they’ve approved lower salary requirements for foreigners applying for work) and even own businesses (Startup Denmark program) to get a residency permit.

While salaries may not reach the heights of some other countries, they remain competitive and are coupled with generous benefits, including ample paid holidays and a standard 37-hour work week. Denmark has one of the world’s best work-life balances, with only 1% of workers putting long hours and a standard 25 vacation days.

However, consider that the cost of living in Denmark is high. If you land a job in Copenhagen, you could even consider living in the quiet university town of Lund, Sweden, and crossing the Øresund strait for work a couple of times a week.

6. Canada 🇨🇦

In Canada, software engineers earn around $69,000 USD annually. That’s approximately €64,000.

The Canadian government actively supports the tech sector through grants or tax incentives. The Deputy Prime Minister recently announced a $20 billion fund to help develop net-zero and clean tech. Also, many provinces have their own programs. Besides clean tech, the country’s focus on AI, healthcare tech, and cybersecurity means you’ll have plenty of paths to find your niche. 

Canada has advantages like few other countries, both for software engineers and for any worker. Some cities are cheaper than their counterparts across the US border. According to Numbeo, Toronto prices are estimated to be around 5% cheaper than Chicago (still, keep in mind that Chicago has greater purchasing power). And Vancouver continually gets picked as North America’s “most liveable” city, a fashionable way to say it’s among the best cities in the world.

Canadians know it’s important to keep a healthy work-life balance and continually push official efforts to help with it, like prescribing free visits to their stunning national parks. They have generous parental leave and well-established safety nets. And for being such a developed (and still underpopulated) nation, Canada has a remarkably simple immigration path, way easier than getting a green card in the US. In addition, Canadians use the metric system.

But, it’s not all idyllic and syrupy up there in the North. Graduates from universities like McGill, sometimes called the “Harvard of Canada,” get more attention than expats, according to testimonials. If the role you’re trying to get into is a senior role, most tech companies will prefer candidates who speak English as their first language, or French if you’re in Québec. This is standard, and the same will happen to you in Bavaria but with German, but you should still consider it. 

Still, techie Indians seem to be doing well in Canada, which hosts the largest Sikh population outside India. So software engineers from India, the Philippines, or China all have opportunities to work and take a piece of the pie, provided they have the right seniority and can get jobs with companies that help them relocate.

Expat Advice: Moving from India to Canada with an IT Role →

7. United Kingdom 🇬🇧

Software engineers in the United Kingdom earn an average of around €58,000 per year.

With London still standing as the world’s financial capital, meaning that there’s plenty of lending and investing going on, the UK software market is predictably huge. In 2024, London is still Europe’s #1 tech hub. But when it comes to tech, other big cities such as Manchester are still attracting companies, start-ups, talent, and investors. In fact, the North is great for software engineers. Big tech companies like Google, Booking.com or Amazon are in Manchester, along with over 10,000 other tech businesses. Startups recently just raised £532 million in funding. Leeds, Oxford and Cambridge are also medtech hubs.

One overlooked (not by investors, though) sector in London for software engineers is cleantech. London climate tech startups took in $3.5B in 2023, up from $2.2B in 2022, and London clinched the second place for climate tech investment globally in 2023.

In England, salaries are generally above their mainland Europe rivals. Particularly in London, a senior software manager (a position which requires around 10 years of experience) can make £102,000 per year, while the same position in Berlin can earn €81,500. For your reference, that £102,000 is more than 10k a month in US dollars. When you rank a software developer salary by country, England always gets a notable mention.

Moving to London for a Tech Job: Mahdi's Relocation Story →

8. Germany 🇩🇪

A software engineer’s salary in Germany is €56,800 a year. More senior roles like software architect earn average salaries of €81,500.

Germany’s tech scene has both the heavyweights — like SAP — and the nimble movers and shakers — like N26 — ready to hire IT expats. Expect fair salaries, healthy work-life balance and software development opportunities in cities like Berlin (more international and expat oriented) or Munich (more traditional).

Germany normally delivers job security and opportunities for skilled developers, but their economy has shrunk a bit, so don’t be surprised if you notice job offers suddenly drop. Still, Germany (and Berlin especially) is the top destination in Europe for expats. The German capital has a considerable expat community, and it’s the city where’s the most likely to find an English-speaking role. Plenty of companies that are expanding internationally are doing it from their HQ in Berlin. Or it can be the other way around — companies that are expanding internationally want to set foot in Germany, and that could be the way in for software engineers. 

The pace might feel slower than working in the UK, for example, and language barriers can be an issue, but if stability, well-being, and quality of life are priorities, Germany can be an excellent fit for you.

9. Norway 🇳🇴

In Norway, software engineers earn an average salary of roughly €53,000 a year.

It’s not that far behind Denmark. It’s actually an excellent salary, considering the small market — totally acceptable for a country with less than six million citizens. The job market is great for senior devs, especially if you speak Norwegian. If you don’t speak it, especially in Oslo, you’ll have plenty of options that don’t require Norwegian, but you can’t get picky. Brush up your skills or consider building a portfolio (open-source projects, conferences) if you’re starting out. 

Software engineers can expect opportunities in green technology. Norway and its Nordic neighbours are recognised as world leaders in the use of renewable energy, cleantech, and sustainable resource handling.  Norway has agreed to reduce emissions, and the government considers carbon capture and storage (CCS) a high priority.  The Climate Investment Fund set up by Norway in 2022 has already committed around $200 million to projects that will avoid annual emissions of 6.2 million tons of CO2.

Work-life balance in Norway depends on the work arrangement because some jobs work as contracts and earn exceptional wages while others are more stable, more secure and more lax but for lower pay. Some companies have strict deadlines, others are flexible. You can find a good fit as you gain experience (seniors have more options).

Norwegians are welcoming and accept foreigners, but friendships take time. Learning the language will help you socialise in the long run and will give you more work options. Norwegians are friendly and educated, enjoy a great standard of living (and have learnt to be happy when it rains), and will be happy to welcome you in. Expect to be awe-struck by their infrastructure and fjords.

The best path to get a job in Norway, especially if you’re not a senior, is to have a company sponsor you and help you relocate. This is the result of a mixed bag of policies that make it hard for non-EU citizens to land a job, not an outright strategic decision. It’s a small market with a low number of jobs, and regulations that started adding up closed out the market for many. Still, with the help of a company, software engineers can work in Norway,  still one of the best countries for software engineers.

10. Sweden 🇸🇪

In Sweden, software engineers earn a net salary of almost €44,000 a year. Other sources report salaries are as good as in the United States, but that’s probably a top salary for a video game company executive. Spotify offers developer product manager salaries of  €76,600 at their Stockholm offices, so there’s also that in-between lane. 

In Sweden, you can make a career in fields such as sustainability or gaming. With a surprisingly high $14 billion raised through IPOs in Stockholm in 2021, the second highest in Europe after London, more than a hundred Swedish companies have access to a large pool of capital to invest in growth, which often includes hiring skilled IT professionals. Software engineers in Sweden don’t have to limit themselves to the tech sector.

Stockholm School of Economics (SSE) is becoming a hot spot for student founders in Sweden — who in turn bring on software engineering jobs. One of their alumni is Klarna, which was initially rejected by investors but has since raised a massive $4.5 billion. Another example is Voi, a micromobility startup founded by an SSE grad. Thanks to an SSE pitch competition, Voi got early investment from a billionaire businesswoman and has now raised $500 million. Remember that education for EU citizens in Sweden is free, so if you intend to go down the founder pipeline as a software engineer, you got a clear opportunity in Stockholm.

The Swedes love their work-life balance, with ample leave — the parental leave in Sweden is unmatched — and flexible arrangements from the get-go. In addition, their command of English is impeccable and could make you wonder if you’re actually in Minnesota or Wisconsin. Still, testimonials tell us that Swedish could open more doors. Still, remember the high cost of living, especially in Stockholm, and consider that expats have trouble finding housing.

Get a job as a software engineer and relocate

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