Two engineers with identical skills can be paid 5x differently - purely because of where they sit and who they work for. This guide breaks down what software engineers actually earn across the world, how pay scales by level, and where the biggest, most controllable jumps come from.
Why pay varies so much
Compensation is set less by how good you are and more by three levers: the market you sell your labour into, the type of company that buys it, and how that company packages the offer. Understanding these three is the difference between accepting a "normal" local salary and engineering a much bigger one.
- Market. Local demand, the presence of well-funded tech companies, and what customers in that economy can pay all compress or inflate salaries.
- Company type. An outsourcing shop bills your time; a product company monetises your output; a US-headquartered company pays against a global budget. Same city, very different numbers.
- Packaging. Base, bonus and equity behave completely differently - and the most valuable offers are usually the ones that look smallest on base.
Median comp by country
The chart below shows approximate median total compensation for a mid-level engineer (~3-6 years of experience), blended across company types, in USD. Big-tech offers in each market run well above these medians - in the US, a mid-level big-tech engineer often clears $220k+.
How comp scales by level
Within a single market, level moves the number more than anything else. Using US big-tech bands as the clearest example (total comp, USD), the jump from senior to staff is often larger than the entire junior-to-mid climb - because impact, not tenure, is what gets paid.
| Level | Typical title | US big-tech total comp | What it rewards |
|---|---|---|---|
| L3 | Junior / SWE I | $180k - $210k | Ships well-scoped tasks reliably |
| L4 | Mid / SWE II | $230k - $290k | Owns features end-to-end |
| L5 | Senior | $320k - $450k | Owns systems and drives projects |
| L6 | Staff | $500k - $700k+ | Org-level technical impact |
Base, bonus & equity
A senior offer is not one number - it's three, and they are not interchangeable. Base is guaranteed and compounds every future raise. Bonus is a percentage of base, paid on performance. Equity is the wild card: it can be the largest component and the reason two "$200k" offers are worth wildly different amounts.
- Base salary - predictable, taxed as income, and the anchor every future raise and offer is measured against. Optimise this first.
- Bonus - typically 10-20% of base at product companies, higher in finance. Ask whether it's target or guaranteed.
- Equity - RSUs at public companies vest into real money; options at startups are a bet. Always ask about strike price, vesting schedule, and the current 409A / share price.
What the numbers miss
A $152k salary in San Francisco and a $80k salary in Berlin can leave you with similar - or even reversed - disposable income once rent, tax and healthcare are accounted for. Two adjustments matter before you compare any two offers across borders:
- Purchasing power (PPP). What the money buys locally. Lower-median markets often punch above their nominal number.
- Effective tax + benefits. Headline salary minus tax, social contributions, and what you must pay for privately (healthcare, pension) is the number that actually reaches you.
How to move up the curve
Three moves reliably shift your compensation, roughly in order of impact per unit of effort:
- Change company type before you change country. Moving from outsourcing to a top-product or US-remote company - even in the same city - is frequently a 2-3x jump and far easier than relocating.
- Level up. Each level is a 25-50% step. Getting to senior is usually worth more than a lateral move to a slightly higher-paying peer. See the Senior Engineer Roadmap.
- Negotiate. Most engineers leave 10-20% on the table by accepting the first number. A single competing offer changes the whole conversation - our Negotiating Offers guide has the scripts.
Sources & further reading
- 1Levels.fyi - salary data by company, level and location — levels.fyi
- 2Stack Overflow Developer Survey - salary by country and experience — Stack Overflow
- 3Glassdoor - software engineer salaries by country — Glassdoor
- 4OECD - comparative price levels (PPP) — OECD