Software Engineering Salaries in Europe vs The United States (2021)

Average salaries differ depending on various factors, including location, company size and industry

Software engineering salaries have outpaced the national average over the last 20 years with the median software engineer in the US earning more than $1,800 per week.

Junior Software Engineer

According to Glassdoor an entry level software engineer with less than 2 years of experience earns on average:

  1. New York: $76,265
  2. London: $34,853
  3. Amsterdam: $40,654
  4. Average: $60,000

Software Engineer

A software engineer with 2–5 years of experience would expect to earn the following yearly wage on average:

  1. New York: $133,068
  2. London: $63,000
  3. Amsterdam: $60,000
  4. Average: $96,000

Senior Software Engineer

A software engineer who has at least 5 years of experience earns the following on average:

  1. New York: $147,816
  2. London: $86,350
  3. Amsterdam: $86,000
  4. Average: $126,000

Lead Software Engineer

If you have more than ~8 years of experience as a software engineer you would expect to earn the following salary:

  1. New York: $132,086
  2. London: $85,000
  3. Amsterdam: $86,000
  4. Average: $109,000

DevOps Engineer

A DevOps engineer with a few years of experience averages the following yearly salary in the US and Europe:

  1. New York: $140,738
  2. London: $84,750
  3. Amsterdam: $58,200
  4. Average: $109,000

Engineering Manager

An engineering manager who has at least 5 years of experience as a software developer and at least 1 year of management may expect to earn the following salary:

  1. New York: $176,462
  2. London: $94,293
  3. Amsterdam: $115,289
  4. Average: $146,500

Director of Engineering

A software engineer who has at least 10 years of experience in both technical and management roles may earn the following as a director of engineering. It should be noted, however, that the range for which you might expect to get paid as a director of engineering can vary widely. Once you have reach this level, salary becomes more linked to the size of company and team whom you will be leading.

  1. New York: $174,123
  2. London: $124,082
  3. Amsterdam: $101,333
  4. Average: $150,000

Data Analyst

According to Glassdoor a data analyst with around 1 year of experience may expect to earn the following salary:

  1. New York: $73,222
  2. London: $43,022
  3. Amsterdam: $63,798
  4. Average: $68,000

Data Scientist

Data scientists are one of the most in demand jobs in the world right now and as a result have higher average salaries than their software engineering counterparts. For example, a data scientist with 2–4 years of experience would expect to earn the following yearly wage:

  1. New York: $114,906
  2. London: $72,478
  3. Amsterdam: $101,064
  4. Average: $113,000

Senior Data Scientist

A software data scientist who has at least 4 years of experience earns the following on average:

  1. New York: $131,902
  2. London: $56,732
  3. Amsterdam: $101,064
  4. Average: $108,000

Lead Data Scientist

If you have more than ~5 years of experience as a data scientist you would expect to earn the following salary:

  1. New York: $159,739
  2. London: $87,048
  3. Amsterdam: $77,726
  4. Average: $122,000

Machine Learning Engineer

Machine learning engineers are at the intersection of software engineering and data science: 2 sought after skills. Given this, salaries can be much higher even for a machine learning engineer with only a few years of experience. If you have more than 2 years of experience as a machine learning engineer you could expect to earn:

  1. New York: $145,071
  2. London: $80,212
  3. Amsterdam: $105,679
  4. Average: $124,000

Data Engineer

Data engineering is one of the most in demand tech skills according to a 2019 survey which is reflected in the average salary. A data engineer with 2 years of experience earns the following on average:

  1. New York: $117,246
  2. London: $74,744
  3. Amsterdam: $67,392
  4. Average: $100,000

Senior Data Engineer

A data engineer with ~4 years of experience earns the following on average:

  1. New York: $147,844
  2. London: $80,883
  3. Amsterdam: $75,400
  4. Average: $116,000

Rising demand, limited supply

The salary breakdown above is based on the average salaries per year as posted on Glassdoor. Granted, there is an invisible range as it pertains to average salaries for the jobs mentioned above as there is missing salaries data. Some positions have a much wider range (e.g. Director of Engineering) in comparison to other roles with a higher supply of candidates (e.g. Junior Software Engineer)

Software developer salaries by location

From our analysis, across the various specializations San Francisco and New York have the highest average salaries, which is obviously offset by the higher cost of living in comparison to London & Amsterdam.

Junior vs senior software engineering salaries

As is expected junior software engineers earn the lowest salary, according to Glassdoor. This is purely a market dynamic given the quantity of junior software developers vs those with experience. This also makes it harder for junior engineers to negotiate salaries when offered a job. Once a junior gets a few years of experience under their belt however, they create much more leverage when negotiating salaries.

Conclusion

The current boom in the technology industry has meant that there are more software development and engineering jobs. Overall, tech companies or recruiters seeking different specialized engineers in the USA offer better salaries than those in Europe, however when we consider living costs, the difference in marginal.

Founder @ 4dayweek.io - Software jobs with a better work / life balance.