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Software Engineer Salary in the United States in 2023
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05th Sep, 2023
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Software is the most sought-after industry worldwide because of the lucrative jobs it offers graduates and professionals. Companies are still under pressure from this climate to improve their employer brand, provide competitive pay, and diversify their talent pools by entering new markets. Upskilling and specialization are frequently the order of the day for engineers, with increasing demand – and the compensation that comes along with it – as the reward. The US, among many advanced countries, offers high-paying jobs in software. However, there is a lot more to know about the average salary for software engineers in the USA. Let us get into it.
Who is a Software Engineer and Why Do We Need Them?
Software engineers, also called software developers, create, modify, and upgrade software programs used in computer applications to solve real problems. They are analytical thinkers who comprehend a problem, identify possible solutions, and develop software that executes the solutions.
In addition, software engineers constantly assess computer applications, maintain them and add new features as required from time to time. Since the internet is an enormous platform having bugs, they protect software products from damage. The glitches include interception of functions and newborn errors in the program structure, for instance, computer viruses.
The Average Salary of Software Engineers in USA
Software engineers is among the high-paid professionals in most countries, including the US. The average annual income of a software professional in the US is 139,470 dollars, which includes additional cash compensation of 15,243 dollars. When converted to Indian currency, it is 11.2 lakh per annum. The minimum software engineer salary in USA is 36,000 dollars, while the highest is 325,000 dollars.
What are the Various Roles of a Software Engineer and Their Salary?
1. Junior software engineer
A junior software engineer is an entry-level software developer. The junior engineer fulfills the role of learning the codebase, writing basic codes, and fixing bugs. He also assists the software development team with designing and programming aspects. One can become a junior software engineer by doing a Software Developer course. One should also note that an academic degree is not a mandatory requirement to become a software developer.
The average software engineer salary in USA for the position is $90,021 base salary and additional cash compensation of $10,203 per year. While the minimum pay scale for the role is about $42,000, the package may hike up to $165,000.
2. Senior software engineer
The responsibility of a senior software engineer is to direct software development, develop high-quality software designs, identify and fix bugs, and lead a team of engineers. A successful career in the role needs good leadership skills and decision-making ability. Our Full-stack Developer course in the USA is designed to help you stay updated with all advancements in the field of software engineering.
The average salary for the role in the US is $172,574 per annum. The package ranges between $75,000 and $366,000 based on experience, skills, and abilities.
3. Software Development Engineer
Software development engineer plays a comprehensive role in terms of business and the upgradation of software. The professional involves in the meetings with clients and understands the requirements and challenges associated with the software applicability. This role includes communication between the development team and the solution-finding team.
The average salary for the position in the US is $114,000. It may vary between $86,000 to $148,000.
4. Principal Software Engineer
The role of the top software engineer has more weightage after developing a prototype or rudimentary forms. He documents and tests software applications to identify glitches and solve them. The professional provides technical guidance to the development team and supervises the functions of the team members.
In the US, the average salary for the role is $168,761. At the same time, it may reach up to $375,000. Besides, you can always upgrade your salary structure by upskilling with the Best Web Development course online.
Factors Contributing to Software Engineer Salary in USA
There are copious factors that can upgrade the salary structure of a software engineer in the USA. Let's take a look at them.
1. Based on experience
For most software jobs at an entry-level, skills are the bases for the package offered. The specifics of the incident are well-defined for those with experience of 2 to 5 years. Some of the metrics are
- Level of technical knowledge and skills
- Ability to handle and lead a team.
- Collaborate with other teams within the same company or another organization.
- Troubleshooting capacity
- Ability to communicate with potential clients and presentation skills.
These are the qualities companies use as a reference while gauging the worth of candidates and deciding the software engineer salary in USA. Here is an approximate figure of the base salaries (excluding company-specific additional benefits, such as stocks) based on experience.
| Experience (years) | Average salary per annum in dollars |
|---|---|
0-2 | $64,000 |
2-5 | $71,000 |
5-9 | $84,000 |
10-19 | $95,000 |
20+ | $99,000 |
2. Based on skills and Job roles
Software jobs are among the most sought-after roles in the world due to the influence of digital applications in nearly every aspect of human life. Therefore, a well-paid position demands high levels of technical skills. The core skills include
- Programming languages: The programming and coding skills requirement depends on the situation. Some in-demand languages include JavaScript, C#, .NET, mean, ruby, and python. Nowadays, e-learning platforms offer short-term courses to upgrade the knowledge and skills of coding.
- Software development: It entails the ability to understand the users' needs and write programs to meet them through a software product. Further, a skilled software developer must be able to test and fix the glitches in newly created software. High-paying roles in the software industry require you to handle all these aspects independently and make decisions as per project requirements.
- Object-oriented designing: It involves four principles, namely abstraction, encapsulation, inheritance, and polymorphism. It is an extended concept of C language used to solve software problems in a system of interacting objects.
- Soft skills: Different roles demand unique interpersonal and soft skills. The skills are as follows:
- Effective communication,
- Logical thinking,
- Eye for detail,
- Sharp troubleshooting abilities
- Teamwork,
- Presentation
- Decision making
3. Based on companies
Generally, companies that create software products pay more than service-providing companies. Service-providing companies depend on the projects of their potential clients, as they do not have the agenda of creating their products. However, roles in service companies help you develop several non-technical skills, such as working under challenging business circumstances. On the other hand, core software companies teach help to improve technical and limited managerial skills.
4. Based on Industries
The average salary of software engineers in USA varies among industries. It also differs from that offered by core software companies. Software engineers are needed in almost all industries in the current digitalized world. They include healthcare, e-commerce, research and development, information technology, and education.
5. Based on Location
Some companies pay their employees based on their chosen location. The reason for the variation is that the companies decide allowances based on the standard of living in a specific city. The cost of living varies among the cities and states within the US. In contrast, other companies do not consider location a factor.
Highly Paying Software Companies in USA
Many global multinational companies offer lucrative software engineering jobs in USA. Some of these are Meta, Netflix, Google, Uber, Stripe, Microsoft, Amazon, Apple, etc. Read on to know more about them:
1. Meta
Meta is one of the most influential companies in the world. It is considered a sought-after place to work for software development and engineering. On average, the company offers $13,000 per month to a new software engineer.
2. Google
Google is metaphorically a place of worship for software engineers. Thousands of people aspire to get software engineering jobs at Google, but most are rejected. This is because of the company's meticulous and strict hiring process. If selected at Google, a newcomer may earn as much as $14,000 per month.
3. Netflix
The movie/series streaming platform is home to many software engineers. These engineers are placed at multiple levels throughout the organization. Given the stratification, it can be tough to land software engineering at Netflix. But with appropriate work experience and skills, a new software engineer can earn as much as $17,500 per month.
4. LinkedIn
Being one of the biggest career-focused social media companies, LinkedIn is a tough place for newcomers to be hired in the software engineering domain. But at the same time, it is one of the most prestigious companies to work at. A software engineer at LinkedIn can pay as much as $20,562 per month!
5. Apple
Apple hires software engineers across numerous areas of work. In fact, the company is one of the most sought-for companies for software development. Software engineers are required for web application development, back-end engineering, mobile engineering, data sciences, security engineering, network engineering, content delivery, data center operations, package support, etc. A new software engineer at Apple can earn as high as $15,723 per month.
6. Uber
Uber hires software engineers to facilitate thousands of ride and freight rides daily. The engineers are expected to write code and enhance the company's ridesharing services with real-time updates to all code bugs. Software engineers at uber are also responsible for building scalable software solutions for drivers.
7. Amazon
A software engineering role at Amazon expects engineers to work with product teams and customers around the globe to offer the best customer experience across all platforms and services the company offers. While getting hired as a software engineer at Amazon is challenging, it is a highly paying company.
8. Stripe
Stripe is a widely used payment platform that leverages software to offer payment solutions and services for other companies. Stripe actively hires engineers to write code and ensure that the payment solutions work without problems. The company pays as high as $21,000 to a newbie software engineer. The company offers numerous positions for software engineers, starting at the internship level.
9. Microsoft
Microsoft is one of the most renowned tech giants that offer lucrative software engineering jobs. The company actively hires software engineers at all levels, from internships to experts. Software engineers at Microsoft are expected to build software solutions for different clients and facilitate the smooth functioning of Microsoft's services and applications.
| Company | Average salary ($) |
|---|---|
Meta (previously Facebook) | $289,000 |
$248,000 | |
Netflix | $416,000 |
$570,000 | |
Apple | $417,000 |
Uber | $551,000 |
Amazon | $534,000 |
Stripe | $580,000 |
Microsoft | $467,000 |
Top Paying Industries for Software Engineers in the United States
1. Healthcare
The software engineer salary in USA in the healthcare industry in the US varies among the roles. However, the average pay scale of software engineers in the industry is $142,000. It varies among the cities. For instance, the average salary in Colorado is $119,000, while it is $165,000 in California.
2. Retail
Though the software has extended its applications to retail, software engineers in this industry earn about $100,000 per year, which is less compared to others.
3. Information technology
The IT sector is not so distant from the core software industry, except its expanse is limited to communication and cybersecurity. A corporate software engineer earns about 124,000 dollars a year. However, freelance hackers make more than them. But it depends on their ability to find clients through contacts.
4. Research and development
This industry is more under the control of the government, the projects are confidential, and so is the salary of the software engineers. There are no statistics on the pay scale of those working in RnD.
5. Media and entertainment
With the advent of OTT platforms, the software boom has extended its applicability in media and entertainment, along with pre-existing social media platforms. On average, the salary of software engineers working in media and entertainment is $141,670 per year.
Pay Range of Software Engineers In Various States of USA
| State | Average salary ($) | Salary of the lowest 10 percent ($) | Salary of highest 10 percent ($) |
|---|---|---|---|
Washington | 112,080 | 81,000 | 153,000 |
California | 115,477 | 83,000 | 160,000 |
Orgon | 91,473 | 66,000 | 125,000 |
New York | 92,847 | 70,000 | 121,000 |
Nevada | 92,651 | 66,000 | 128,000 |
Arizona | 83,602 | 61,000 | 113,000 |
Delaware | 82,336 | 62,000 | 108,000 |
Massachusetts | 83, 652 | 64,000 | 108,000 |
Vermont | 80,333 | 62,000 | 103,000 |
Virginia | 82,022 | 62,000 | 107,000 |
Highest Paying Cities for Software Engineers in USA
The USA is one of the most promising countries that offer highly rewarding software engineering jobs to people worldwide. Many cities in the USA offer more remuneration compared to others. Below is a list of some of the highest-paying cities in the USA. Have a look.
| City | Average salary in dollars |
|---|---|
Fort Worth, Texas | 111,113 |
Chicago, Illinois | 108,520 |
Los Angeles, California | 130,799 |
Boston, Massachusetts | 116,077 |
San Jose, California | 157,480 |
San Francisco, California | 144,740 |
New York City, New York | 132,495 |
Seattle, Washington | 140.930 |
El Paso, Texas | 106,331 |
Software Engineer Salary Structure in the USA
Software engineer salary in USA has three components: base salary, cash compensation, and yearly bonus. As per the latest update, the average values of these are $124,227, $15,243, and $4,500. Additional benefits include health or medical insurance, stock ownership, and others, which vary among companies.
How to Increase Your Salary as a Software Engineer?
In any profession, gaining more experience and improving competence leads to a hike in salary, but the method of achieving it varies. Here is how a software engineer can climb the ladder and get paid better.
1. Choose a strategic specialization
Within software development, choose a strategic discipline that entails broader authority and responsibilities. You may choose to go for:
- Computing Essentials (CMP)
- Mathematical and Engineering Fundamentals (FND)
- Professional practice (PRF)
- Software Design (DES)
- Software Verification and Validation (VAV)
2. Upskill yourself
To back the upward move, improve your skills and abilities with every project you take up in your current position. Volunteer in challenging circumstances and learn new things. You can also take up short-term courses to improve your technical skills.
3. Switch companies
Switching companies exposes you to different working environments and cultures. However, you should only leave a company with valid reasons. But if you have served enough at one company and are seeking growth in your IT career, shifting companies might help. Intuitively, more prominent companies are known to offer more for a role given they realize the importance of work ex relevance and employee retention, giving you a better chance to grow.
4. Become a team leader
With experience and the ability to take up challenges and solve complex technical glitches, you always have a scope for becoming a team leader. A team leader is a qualified individual managing, directs, and guides a whole team. They are in charge of energizing their team members and encouraging open communication so they can cooperate to accomplish objectives.
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KnowledgeHut Certifications that Help to Increase Software Engineer Compensation
KnowledgeHut offers high-value courses for software developers to improve their compensation. They are
- Certified Secure Software Lifecycle Professional certification.
- Certified Software Development Professional.
- CIW Web Development Professional.
- AWS Certified Developer.
- Microsoft Certified Azure Solutions Architect.
Conclusion
Clearly, the US is one of the most promising countries that offer high-paying software jobs for software engineers across the globe. Many technological leaders like Google, Apple, Amazon, Microsoft, etc., are managing their software development operations in the USA and hiring thousands of software engineers. The country offers great prospects, especially areas in and around San Fransisco, Boston, Chicago, San Jose, etc., offers lucrative jobs to software engineers, from entry-level engineers to experts. However, you should be picky about the state and city if you want the best one that matches your interests and passion. We hope this account of software engineer salary in the united states helps you make an informed decision about your career.
Frequently Asked Questions (FAQs)
1. Is a software engineer internship an excellent way to get a job in the US?
An internship provides exposure to the corporate world and an opportunity to apply your knowledge and skills in coding.
2. What is considered a good software engineer salary in the US?
In the US, a software engineer has an average pay of $141,462. An additional $20,556 in cash is the standard salary for software engineers in the US. Hence, they receive a total annual salary of $162,018.
3. Who gets paid more, software engineer or software developer in the US?
Specific computer systems and application software are created by software developers. Software engineering is a subset of software development. Software engineers operate on a broader scale to design, create, and test complete computer systems and application software for a company or organization. The software's planning, construction, and testing may fall under the purview of the software developer. They perform particular duties for the software's construction. On the other hand, the software engineer typically gets involved in the software development life cycle (SDLC) right away.
Software developers make more money than software engineers do. However, there is one distinction: although software engineers make an average of $95,000 annually, software developers make an average of $94,000. The average software engineer makes just 1.06% more money, in other words.
4. What month do software engineers get appraisals in the USA?
Different companies offer appraisal cycles of different time periods. It could be 1 year, 6 months, or even 3 months, depending on company policy. Many companies opt for mid-year appraisal after reviewing employee performance, starting late May/early June.
5. Is software engineering a high-paying job in America?
Yes. It is one job profile that gets high salaries in the US. On average, a fresher may earn as much as $6,000 per month.
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