Workers in the tech industry are among the best paid in the world. Although there exists a noticeable salary difference from one region to another, it is also necessary to consider the higher living cost and the more competitive labor market in certain areas compared to others.
Tech Salaries in the US
The US is, by far, the best-paying country for software developers and software engineers, followed by Switzerland, Norway, Denmark, Israel, and Sweden. The salary differences for tech experts within the US can be quite startling.
For example, San Francisco and New York see prices around 41% higher than the average national IT salary. In Phoenix, Arizona, on the other hand, the market price is approximately 17% lower than the national average.
However, according to Forbes, some of the US cities with the highest tech salaries also have such a high cost of living that workers there may be, on the whole, earning less.
The cost of hiring tech experts in the US is much higher than the flat salary due to the need to offer health insurance and dental care. This is not the case in most other first-world countries where medical care is much less expensive or partially subsidized by the state. This means that healthcare is not such a burden on the employing firm.
These are a few factors pushing some software firms in the US to consider so-called “near-shore” tech experts from Central and South America. The lower average cost of living in these areas means that the salaries are many times lower than the US average. Furthermore, the similar longitudes represent reduced or no time zone differences.
Popular Programming Languages
The programming language they specialize in is an ulterior factor that influences the overall salary of tech workers worldwide. For example, in the US, the highest-paid are specialists in IOS, followed by Android, JavaScript, Python, and C++.
The Situation in Europe
Differences in salary by programming language also exist in Germany and other European countries. Still, they tend to be more homogenous and less drastic than those we see in the US.
Here too, developers and engineers for mobile applications, i.e., IOS and Android, are high on the salary scale because there is no shortage of worldwide demand for new and innovative mobile apps.
Average Annual Tech Salaries in Western Europe
In Western Europe average annual salaries for IT developers are easier to estimate accurately and are as follows:
- Switzerland- 95,394$
- Denmark- 72,151$
- Norway- 64,202$
- Germany- 60,162$
- Netherlands- 54,025$
- Sweden- 51,396$
- Finland- 49,203$
- France- 46, 508$
- UK- 42,394
Eastern Europe
Eastern Europe also has excellent software developers, but once again, the economic situation in the region and the lower cost of living have an impact on the average hourly costs of employing their expertise.
In Western Europe, you can expect to pay (or be paid) somewhere between $70-100 dollars per hour. In Eastern Europe, the prices are just about half of what we see in the west- ranging from $20-50 dollars per hour.
There are many excellent software development firms on the “old continent,” and a surprising number operate out of eastern Europe. Ukraine, for example, has a large number of software development companies within its borders. One example is MLSDev – software development company that also cooperates with big brands such as McDonald’s.
Flexibility and Productivity of the Tech Industry
The ability of tech workers to work from the comfort of their homes significantly reduces costs. This factor allows businesses to save on expenses such as rent, electricity, and hardware without losing productivity. In addition, most tech experts affirm that they feel more productive while working from home.
To Sum Things up
Whether you are seeking to hire an IT specialist or an IT specialist in search of new employment, you should pay special attention to the differences in salaries adjusted for the cost of living.
For example, it could make more sense to earn a little bit less in a region where you spend a lot less rather than vice versa.