Developer Salary in Europe and United States: What Affects the Cost?
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What You Need to Know to Consider Developer Cost?

Illia Pinchuk

IT expert is a well-paid profession all across the world, nevertheless, salaries might vary according to skills, experience, and country of residence of developers. In this post, we provide average annual incomes of different software developers in the USA and Europe with regard to experience, skills and particular tasks.

Salaries in IT sector highly depend on the programmer's experience — either entry-level, mid-career, or senior level. Tech skills, such as C++, C#, Java, JavaScript, .NET, PHP also influence the earned income very much. However, as location greatly predetermines the average salary range, we decided to list the countries with the highest developer costs.

Average Cost of Software Development

Average Cost of Software Development Depending Technology

The USA can boast of the highest developer salary that is about $90K per year. Canada comes second offering programmers circa $70K per annum. UK, Israel, and Australia pay IT specialists around $60K–$65K annually. Mexico, Ukraine, and Belarus come last on the list, offering IT experts around $35K per year.

Here is a chart showing an average salary range that depends on the programmer’s experience:

Average Salary of Software Developers

Let's take a closer look at the countries that are the most progressive in the development of IT technologies.

Software Developer Salary in the UK

British software engineers usually earn $62,500 per year, judging from Techtarget. In the UK, the difference among the entry-level specialists and the most skilled IT experts is probably the biggest. In this country, a beginner might earn as low as $24K, and an experienced professional can reach $72K of income.

Software Developer Salary in the UK

Here .Net software developers get the highest salary which starts from $42K per year. ASP.Net developers tend to earn almost the same annual salary, which is approximately $42 K. Senior software developer is circa $62K in the UK.

Software Developer Salary in Germany

In Germany, programmers usually earn up to $50K per year with the national average of about $47K. As for entry-level specialists, they make only 6% less than their highly experienced counterparts.

Software Developer Salary in Germany

Computer engineer salary in Germany also depends on their knowledge of programming languages. For instance, C++ is the highest-paying language with the average salary of $53.3K per year. Java and .NET developers earn almost the same amount of money  — approximately $48,370 per annum. However, JavaScript technology allows programmers to earn less than others — $46,321 per year.

Software Developer Salary in the USA

American IT experts are considered to get the highest costs in the world. Their salaries vary greatly: the lowest is $60,956 whereas the highest salary can go up to $116,983. The average programmer salary in the U.S. is approximately $90,052 per year.

Software Developer Salary in the USA

Similar to other countries’ experience with tech, C++ engineers get the biggest annual salaries (up to $117K). JavaScript programming language allows IT specialists in the USA to earn a little less (circa $110K per year). The average software development rate is $102K per annum in America.

You might be interested in the following article "Programmers Salary by Country and Expertise: PHP"

Average Salary of Software Developers in Ukraine

Average Salary of Software Engineers in Ukraine

As you see, Ukrainian programmers charge significantly lower fees than their European counterparts. That’s why an increasing number of CEOs choose this country to develop their business. In fact, Ukraine comes 1st in Europe Colliers International and ranks 4th by the number of certified IT experts in the world. It produces 36,000 of tech professionals each year, and at the moment there are over 100,000 software engineers who usually work with West European and North American clients. No matter what size your business is, Ukrainian programmers will help you to bring it on a completely new level.

MEDIAN SALARIES OF UKRAINIAN SOFTWARE DEVELOPERS (AS OF DECEMBER 2017)

Experience and roleJavaScriptJavaObjective-CSwiftScala
1–2 years (Software engineer)$1400$1800$1200$1700$2250
3–5 years (Software engineer)$2200$2300$2260$2450$3400
6–10 years (Senior engineer)$3800$4000$3600$3500$4300
6–10 years (Tech lead)$4500$4325$3800$4500$5000

The Average Cost of Software Development Depending on Title, Role, Tasks

Engineers or developers with “Senior” level of expertise are 16% of the sample and earn in common +$9,147 more than their junior counterparts. Three other titles have positive coefficients: Principal/Lead (8% of the sample, +$11,936), Architect (7%, +$15,488), and Consultant (3%, +$11,867). Managers and students don’t take part in the survey, so there were no coefficients associated with them (the median salary of respondents in upper management was $123K).

Salary Median - IT Specialists

The highest salary is observed among project management in engineering and planning large software projects. The lowest salary is among developers who write code for the collaborative projects.

These salaries show the rates of the USA and the UK. If taking into account Northern Ireland that is the part of the UK but exists independently, on average, web developers have salary $47 000 per year.

If you need part-time software development services, these are hourly rates in various countries:

  • Latin America – $30-50
  • Eastern Europe – $25-40
  • Asia – $18-40
  • Africa – $20-40

What Factors You Need to Take into Account Except for the Financial Issues

Yeah, money is an important factor but there are many other key points to make a decision. For example, if you want to create the same or similar software systems that already exist - welcome to the pool of German or British web developers. They are always ready to follow strict rules, work within the system and work hard to create complex but usual products.

The main reason why their programmers will be a good fit for the usual IT systems is that German and British people live under the pressure of existing laws. And they have not only basic legal regulations to protect their citizens. For example, if British man wants to marry an American woman, they can wait up to one year to get a permission from the British government and finally get married. Moreover, if you want to save money in the bank in the UK but you don’t live all the time in England, you cannot do it and your bank account will be closed.

The similar system works for Germany: laws are everywhere and huge fines. That’s why you may see a lot of people with green hair and unusual look in Berlin. This is their rebellion against the system and the way to emphasize their creativity and individuality.

London and Berlin are trying to gain innovative approaches that confirm a lot of IT companies there involving Google in both cities. But this is just an attempt to grow as a unique provider of IT services and this way may be long.

Norway, Switzerland, and Denmark may be a good choice for the ambitious projects but these services are very expensive. These countries have easier culture than mentioned above but they don’t actively look for the partnership. Those countries are well-known as close and oriented to fulfill internal needs rather than outsourcing.

So, if you don’t have a ready scratch and very strict requirements what you want to create, or your product is innovative and unusual, explore possible cooperation with companies based in Eastern Europe or Latin America, etc. It will be cheaper and easier to order software systems from the employees with readiness to experiment and implement know-how. Moreover, these countries have cheaper rent and lower taxes that make your services cost-effective.

US companies are also on their way of work culture improvement. Columbia Business School’s survey proved that only 15% of the companies pay attention to this issue. Medium-sized and small US companies are a microcosm that requires special efforts to launch the needed work atmosphere. Toxic culture environment may lead to the loss of finances and reputation, especially for large companies. For example, the employees at Volkswagen were asked to fool emissions tests that costed them $18 billion of loss.

Great Place to Work’s survey emphasized that H&M in Sweden, SAP in Germany, Salesforce in San Francisco are the companies with the highest employees’ satisfaction and engagement. Let’s consider what makes these companies so special in order to know what factors to include in your must-have list to start cooperating with IT company. First of all, the company needs to have a CEO with the right vision and values, relevant priorities. A visionary leader makes an organization successful and innovative. Secondly, most employees want to be creative and add value, feel that the projects make a difference. Thirdly, people prefer to have a freedom to implement their ideas and participate in developing a strategy. Also, pleasant communication among team members improves the whole company’s culture.

Many companies nowadays allow their employees to grow in order to refine their work satisfaction. Moreover, a schedule that helps to save work and life balance is important as well.

IT company is aimed to be a place where each idea is possible. Information technology needs to serve people to simplify, automate and refine their everyday experience. “Faster, better and cheaper” is the modern mantra for the customers. People all over the world run as quick as they can to achieve their goals, their brains are overloaded and time seems to be more valuable than ever. So, useful apps, chatbots, online assistants, databases, cloud solutions are the important ways not to freak out in the fast-paced environment.

Keep in mind one more valuable trend - corporate social responsibility. IT employees have very good salaries, so for many of them beliefs, values, the ability to save a planet is more important than money.

Possible Bonuses to Engage IT Employees

Researches showed that only 30% of workers are motivated by annual financial bonuses that means that most people aren’t willing to run quicker in order to get extra money. The results of the survey proved smaller rewards are greater for the 47% of the respondents between 18 and 34 years old.

Iain Thomson, director of incentive and recognition at Sodexo Engage, says that nowadays workers appreciate more memorable gifts and opportunities. This insight helps leaders to improve their relationships with their subordinates.

Some companies believe that celebrating your employees’ personal events such as weddings, birthdays and having a baby is important. It helps to boost their sense of belonging that is valuable according to the SCARF model.

If you want to engage millennials, give them more responsibilities and promote them. Many of them want to be bosses, improve their status and look valuable. That’s why they are willing to update their content in social media and share their achievements.

Some employees wait for the financial bonuses during the holiday season because they need to cover many issues simultaneously. For others, tangible things like a gym bag, yoga mat or Fitbit activity tracker will be the best bonus.

Harvard’s survey showed that many employees want to help others and participate in charity programs. They can invest a part of their salaries or use work hours to contribute to the social projects. Your company may give gift cards that team members may use to help people with disabilities, refugees, etc.

Consider family gifts as well that help not only to say “thanks” for your staff in an unusual way but share your praise within the employee’s network. Moreover, you may give an opportunity for the couples to spend some time together on the resorts that will be an especially good gift for the tired young parents.

Many researches noticed that nowadays people prefer experience over the things. So, expand your team members’ horizons, and let them enjoy the life and come back refreshed and engaged to the work.

Let’s consider other options to boost employee engagement.

  • Informal meeting with the positive approach. Be a coach for your subordinates and allow them to share their feedback, have a voice. Set a positive tone of the conversation and make the talk fun. Work issues may be a good motivation to improve skills, grow and not to be bored.
  • Check whether everything runs smoothly. Be ready to help new or struggling employees. For example, if your employee’s relative is in the hospital, provide a flexible schedule, cut the hours, offer financial support and ensure that this team member is stress-free in this difficult period of time. Especially, when it is related to the serious diseases such as cancer. Researches displayed that when employees’ close friends or relatives have serious challenges, it feels the same as they have such problems. So, it’s important to create a culture of support and friendly atmosphere.
  • Recognize great work. Show your staff that you notice their achievements and appreciate their time and efforts. Small rewards based on the employee’s motivation is a good way to celebrate winnings. These bonuses have to match their needs and make them happier. Moreover, it can be small signs of praise: photo on the wall, friendly hug, announcement in the corporate messenger, cake, flowers, limousine to take home. Use your imagination to create a great atmosphere at the workplace.
  • An extra day off. Many companies use this pleasant bonus to allow employees to take days off  and not to explain the reason. It works for some emergency situations when you need to wait for the master to repair something in your house or the child got ill. Sometimes, employees need additional time to solve their small issues, go to the bank, etc.
  • Funny parties. It can be movie nights, degustation of the unusual food, drinks, excursion, relaxing time at nature, karaoke. You may engage your employees’ team members as well to promote family culture. Moreover, it’s easier to find a time to spend with your family and colleagues at the same time than just with work friends.
  • Refreshing opportunities during the summer. If the company is based in the country with hot weather, help your employees to chill and refresh. It can be cold drinks, a pool during the summer and so on. Show your team members that you care about them and they are important to you.

As we see, improving employee engagement is hard work that requires money and efforts. You can hire a professional HR manager to perform these tasks and keep in mind to adapt bonuses according to the employee’s motivation. It’s important to base your reward system on the knowledge of the specific team member and her or his country in general.

Unlike advanced countries where software development is expensive, Ukraine offers reasonable rates for creating super IT products and solutions. Our company provides a bunch of IT services delivering flexible, user-friendly, cross-browser solutions to our clients from over 20 countries of the world. We also re-engineer and add new functionalities to our clients current systems taking into consideration unique requirements and specifications. We specialize in CRM, SCM, ERP, and EAM solutions as well.

If you’re looking for the reliable and innovative IT service provider, our forward-looking solutions cover such business areas as insurance, e-commerce, HR and Benefits, Healthcare, Constructions, Travel, and Hospitality. Should you have any questions about a particular technology feel free to ask our experts.

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