Why Do Software Engineers Make So Much

Software Development

Why Do Software Engineers Make So Much | 5 Key Reasons

Quick Summary : In this blog you will learn about

  • Why Do Software Engineers Make So Much ?
  • Software developers skills set
  • Conclusion

Table of Contents


In comparison to other professions, software engineers make a lot of money. In the last decade, the salary expectations of developers across USA have increased significantly. The salaries of the developers living in the tech hubs having higher costs are even higher. Software engineers make so much due to the high skill demand and limited developer supply. The role of software developers is quite tricky, and they provide tremendous value. It is tough to find the perfect developers, and their need is even more due to the rise of Technology. The technologies change significantly, and the role can be very demanding, which adds to the developers’ salaries.

How Much Does a Software Developer Make ?

On average/per year, software engineers earn about $114,576 and most get a bonus of $4,000 annually. This is the national average, and these salaries differ depending upon your location in the country and the type of software engineering role you have.

The country of the software developer also makes a huge impact. In the UK, software engineers earn only £38,001($52,004) a year, and they receive a bonus amount ranging between £600 ($821) and £10,000 ($13,684). In European countries like Germany and Netherlands, software engineers are paid between €52,038 ($60,162) and €46,708 ($54,025).

Your pay is also affected a lot by your experience. After five years of experience, you can become a senior software engineer, and your payment will be $131,000. Your pay is more as you work and progress more.

Good Read : React Native Developer Salary

5 Reasons to High salaries of Developers

  • Supply and Demand :

The most crucial reason software engineers make so much is that supply is not meeting the demand. For the automation and streamlining of their processes, the companies are crying out for competent developers. Even though so many people study computer science in their college, the demand for developers still surpasses the supply. So the ball is in the court of the developers, especially when it comes to salary negotiations, especially in the big cities. If the companies are unwilling to scale up for a good salary package, it is still easy to get a job elsewhere.
  • Business Needs :

Most businesses call their tech departments the most critical team. If the services are down or things are not working correctly, it can cost companies a small fortune. The outage of Facebook that lasted only for 6 hours cost the company around $60 million, based on their 2020 profits of $85.97 billion. The job of software engineers is to prevent issues like these from happening and allow things to operate correctly.
  • Changing Technology :

Mostly with careers, you learn a skill set that can be used daily throughout your career. But software engineering isn’t the same. The first step on this long journey is to learn to code, and it goes on. The landscape of development is constantly shifting as technology changes. So the developers must upskill and improve to stay with the trends. They need to be very adaptable. Such traits and willingness to continue learning are laborious, one reason programmers are earning so well.
  • Value :

A big team of developers is not necessary to provide you with massive value to a business. Instagram only had 13 employees at the company when Facebook bought it for 1$billion. Software engineers have an incredible output-to-value ratio. So it is very tough to get such numbers in any other industry.
  • Difficulty :

A skilled software developer is more than just learning to code. He knows the end solution required by clients to meet their needs. Although it is difficult because as the project progresses there can be several obstacles like changing requirements, resource management or not meeting with client expectations. So they manage all these things to complete the project within deadline.
Software Developers Skills

In nutshell software engineers can :

  • Diagnose challenging problem.
  • Optimization of the existing systems, processes and codes.
  • Work in a team well.
  • Approximation of the delivery of significant issues.
  • Learning and retaining constantly.
  • Working well with different departments of the business.

The challenging nature of developers’ jobs, the high demand for the skill, and the exceptional value to output for a business make the software engineers the highest earners. The expanding technology means that software engineers are in demand more than ever, and we still need them a lot to fill in all the gaps. The progression and adaptation of technology will likely increase the demand for developers in the future. A trained new generation of engineers is needed to work with the futuristic systems.


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Due to the high demand and short supply, the software engineers specializing in machine learning and data science are the highest paid. Glassdoor mentioned that the second-highest entry-level position for freelancers is the software engineer, with a median base salary of around $90,000/year.
In the US, large software companies earn high revenues. They can provide job opportunities and pay high salaries to their developers.
The employment survey reported that software engineers scored high marks in the survey. They are content due to the combination of the factors, including flexibility, autonomy, pay and job satisfaction.

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