tech salaries have been climbing for years, but the landscape is more complex now than ever. remote work changed everything. candidates in lower-cost locations can now command salaries closer to major tech hub rates, while companies in expensive cities face pressure to adjust their compensation strategies.
in the US, senior software engineers at major tech companies are still pulling in $200k to $350k total compensation packages. that includes base salary, stock, and bonuses. but those numbers are concentrated in places like san francisco, seattle, and new york. move to smaller markets and you'll see $120k to $180k for similar roles.
europe's salary ranges are more compressed. a senior engineer in london might make £80k to £120k, which sounds lower than US rates until you factor in better benefits, more vacation time, and lower healthcare costs. germany, netherlands, and switzerland pay well too, but again the total picture matters more than base salary alone.
eastern europe has become a major tech talent hub. poland, romania, and ukraine have strong engineering talent at salaries that are high locally but still lower than western europe. senior engineers there might make €40k to €70k, which goes much further in those economies than the same amount would in london or berlin.
latin america is seeing growth too. brazil, argentina, and mexico have established tech scenes. salaries are rising as more US companies hire there, but they're still significantly below north american rates. a senior engineer might make $30k to $60k, though the best talent can command more, especially from US companies.
asia presents huge variation. singapore and hong kong pay well, often matching or exceeding european rates. india has massive tech talent but salary ranges vary enormously depending on company type and location. bangalore engineers at major tech companies might make what their european counterparts do, while similar roles at local companies pay much less.
specialization creates salary premiums everywhere. machine learning engineers, security specialists, and blockchain developers consistently command higher pay than general software engineers. the demand for these skills outpaces supply globally.
remote work hasn't fully equalized salaries like some predicted. most companies still adjust compensation based on location. a remote engineer in portugal working for a US company typically makes more than local rates but less than if they lived in california. the gap is narrowing though.
equity compensation varies wildly by company stage and location. startups offer more equity but it's often worthless. public tech companies offer restricted stock units that have real value. candidates need to understand the difference and not get swayed by paper valuations.
benefits matter more than people realize. healthcare costs in the US mean take-home pay there doesn't stretch as far as raw numbers suggest. european companies with strong pension contributions and generous vacation policies offer real value that doesn't show in base salary figures.
contract rates follow different patterns. contractors typically charge higher hourly or daily rates to account for lack of benefits and job security. in markets like the UK, senior contractors might charge £500 to £800 per day. in the US, experienced contractors can bill $150 to $300 per hour for specialized work.
salary transparency is increasing. more companies are publishing pay bands, and more candidates are sharing compensation information openly. this puts pressure on companies that were underpaying but helps candidates understand market rates better.
inflation has affected tech salaries too. real wage growth has slowed in many markets even though nominal salaries keep rising. candidates are more focused on total compensation and adjusting expectations based on purchasing power in their location.
the shift to remote work means companies now compete globally for talent, at least for roles that can be done remotely. this has pushed salaries up in previously lower-paid markets while creating pressure to control costs in traditional tech hubs. the result is a slow convergence toward more globally competitive rates.
looking ahead, salary expectations will keep rising for in-demand skills. but the days of automatic annual increases across the board are probably over. companies are getting more strategic about compensation, rewarding critical skills and proven performance while being more cautious with across-the-board raises. for candidates, this means developing specialized expertise and being willing to negotiate based on market value matters more than ever.