Salaries for software developers continued on a downward trend in real terms in 2023 after reaching a peak in 2021. This is according to OfferZen’s State of the Developer Nation (SODN) report released this week.
“Across the board, salary band growth for developers has slowed more and more in recent years. Entry-level and junior developers have seen their salaries decrease in 2023, while intermediates have only seen nominal increases,” the OfferZen report found.
“When controlling for inflation, many developers essentially experienced a decrease in their buying power in the past two years.”
The SODN data shows that when adjusted for inflation, the average salary for senior developers (10-plus years of experience) and intermediates with four to six years of experience were the only categories not to experience a decline in their earnings.
Junior developers with up to two years’ experience, intermediates with up to four years’ experience and seniors with six to 10 years of experience all saw a contraction in their earnings in real terms (adjusted for inflation).
According to the data, increases are also fewer and further between. However, the general outlook is still positive, with most developers surveyed reporting that they received salary increases in 2023. Of the 75% who got an increase, 29% got a raise of between 6% and 10% while only 5.9% reported salary growth of more than 20%.
Cost-cutting
Although only 1.2% of developers surveyed reported getting their salaries cut, companies are finding other ways to save costs, including cutting down on employee perks. Budgets for training, remote equipment and share allocations all saw significant declines.
“We’re seeing reductions of perks across the board with only a few exceptions, most notably bonuses. This points towards an attempt still to reward developers making a business impact,” said the report.
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On the positive side, the gender pay gap has narrowed in the last year. This narrowing has taken place across all levels of experience. At entry level, salaries for male and female developers are identical, said OfferZen. The gap begins to show itself after candidates have at least two years of experience under their belt. It is widest at the most senior level (10-plus years’ experience), where men earn 17% more than their female counterparts on average.
“We hope that, by providing salary transparency on our job platform and in reports like these, we will equip all developers with the knowledge and confidence they need to earn the salary they deserve. We’re also planning to publish further insights on this topic in the future,” said OfferZen. – © 2024 NewsCentral Media