If you’ve considered becoming a software developer, you’ve most likely wondered about what the entry level software developer salary is. Will you be able to make ends meet as a software engineer in your first years of employment? Will your salary increase significantly over time? Are there certain industries in which you might be paid more than in others?
The great news is that the demand for software developers is at an all-time high and only keeps growing. Software developers are so highly in demand and employers are willing to pay the price to outbid their competition.
Read below to find out what salary entry-level software developers are getting. Maybe afterwards you’ll be ready to sign up for a Coding Dojo bootcamp to get your new career started.
Most organizations pay software developers an annual salary rather than an hourly rate. Whether you are considered exempt or non-exempt (which primarily affects how you are paid for overtime but also affects other areas of employment), however, will depend on your roles and responsibilities within the organization and may vary from one position to the next.
You can determine an approximate hourly rate of pay by taking the annual salary offered divided by 2,080 for a full-time position. Likewise, you can multiply an hourly rate by 2,080 to determine your annual salary. There also plenty of online resources that can help you determine your salary or hourly rate, including ADP and SmartAsset.
Entry-Level Software Development Salaries
According to Glassdoor.com, the latest national average entry-level software developer salary is $62,000 USD. That is the average, so if you’re starting salary could be higher or lower depending on your location or the company itself. Some companies start software developers out below that number—as low as $50,000—and some start software developers out significantly higher than that, even as high as $91,000 annually.
You can expect your salary to increase rapidly as you gain experience and longevity with an organization. The overall average software engineer salary for all levels of experience is $108,000 according to Glassdoor and just under $119,000 according to Indeed. By the time you have a few years under your belt, your salary could range anywhere from $120,000 to $180,000, but many companies pay experienced software developers much more than that.
High Paying Industries
Regardless of your field, you will definitely have plenty of options to choose from when you’re looking for an entry-level software development job.
Non-profit organizations, companies in early start-up phases and smaller tech companies tend to offer less in terms of compensation, although their benefits package might be more extensive. That could include more unique perks like unlimited time off, pet insurance, stock options, remote work, or much more. On top of that, these companies could offer more room for advancement as the company grows with your career.
On the flip side, companies like Microsoft, LinkedIn, Amazon in tech hubs (Seattle and San Francisco) or bigger cities (Los Angeles, New York City, Chicago) tend to offer higher entry-level software salaries and more established benefits, although they make lack some of the more unique perks a startup may have. This list of companies should give you a good idea of the highest paying companies for software developers.
Keep in mind that the level of professionalism required and the roles, responsibilities, and expectations the organization has for you typically matches the compensation. This means that a higher-paying job most often demands more of your time and resources and requires a higher level of professionalism. Some people might be looking for less responsibility as they learn the ropes in order to avoid excessive responsibility, while others strive for leadership positions as soon as their feet hit the floor. Only you can determine whether a position is within your comfort zone or not.
A common mistake made by new graduates is dismissing or overlooking benefits and simply choosing the highest salary offered. A difference of just 1% in retirement match or 10% in health insurance premium paid by the employer can quickly eat up the additional salary offered. Take into consideration salary and benefits when accepting, declining, or negotiating an offer.
Opportunity for Advancement
Opportunities for advancement may make or break an offer depending on your personal and professional goals. Many organizations have a lead software developer, director of software development, software development project coordinator, or some combination or variation of the three.
Opportunity for an increase in responsibility equals opportunity for professional development and increased compensation and benefits. Be sure to ask prospective employers to describe the chain of command or structure of the IT/software development department or division.
A career in software development can easily provide a comfortable or even luxurious lifestyle. Asking the right questions, considering the right factors, and choosing your employer carefully can ensure a successful and fruitful career in software development.
Learn Software Development at coding Dojo
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