I’ve spent years immersed in the tech hiring world, witnessing first-hand how much value brilliant engineers bring to the table. One question that always comes up, whether I’m chatting with aspiring coders or seasoned pros, is about salaries. It’s a big one, isn’t it? Especially when you’re weighing up opportunities across different countries.
Today, I want to take a good look at what software engineers are earning, focusing on the two major tech powerhouses: the United States and my home, the United Kingdom. We’ll compare them, break down the figures, and talk about what truly influences your pay packet.
The Global Picture: UK vs. US
When we talk about software engineering salaries, the US often grabs the headlines, and for good reason. It consistently sits at the top of the global pay scale for tech talent. For example, the average software developer salary in the US is reported to be around $110,140 per year. Some sources even put the average total compensation higher, at around $156,133, with a median of $140,000.
In comparison, the United Kingdom offers a solid, but generally lower, average. The average software engineer in the UK is expected to earn approximately £48,723 annually. While this might seem a stark difference on paper, it’s essential to remember that currency exchange rates and, critically, the cost of living, play a massive role in what that money can actually buy you.
Let’s dive a bit deeper into each region.
Deep Dive: Software Engineer Salaries in the United States
The US tech market is known for its high-octane growth and competitive compensation.
Average Earnings and Recent Shifts:
While the U.S. Bureau of Labor Statistics shows a consistent upward trend in computer programmer salaries, from $61,540 in 2000 to $91,610 in 2020, more current reports from sources like Built In indicate a higher average base salary of $137,318, with total compensation reaching $156,133, and a median of $140,000. It’s worth noting that overall software engineer salaries have recently dipped by around 9% to 15% due to factors like overhiring, mass layoffs, and the increasing use of AI. However, the long-term trend remains positive.
Specialisation Matters
Your specific area of expertise can significantly influence your earning potential. Roles within the engineering sphere vary widely in compensation. For instance, Machine Learning Engineers, who specialise in developing machine learning solutions, command a median salary of $177,238. This is quite a bit more than a general Software Engineer, whose median stands at $166,000. Other lucrative specialisations include Data Engineers ($150,000 median) and DevOps Engineers ($148,190 median). Interestingly, senior and staff-level Machine Learning Engineers tend to have base salaries that are 7% to 8% higher than those of software engineering generalists at the same level.
The Experience Ladder
Just like in any profession, experience is key. As software engineers gain more years in the field and take on greater responsibility, their salaries naturally increase. Here’s a general breakdown of median salaries by experience level based on Pave’s framework:
- Entry-Level (P1): $115,416
- Mid-Level (P2/P3): From $146,062 to $166,000
- Senior-Level (P4/P5/P6): Ranging from $187,500 to $250,000
- Management Roles (M3-M6): These can climb even higher, from $206,078 to $293,500. Built In’s data reinforces this, showing that engineers with less than one year of experience average $101,832, while those with 7+ years average $143,145.
Location, Location, Location
Where you live in the US plays a huge part in your earnings. Unsurprisingly, major tech hubs, often associated with a higher cost of living, offer the most competitive salaries. New York City, for example, boasts a median salary of $189,000 for a mid-level software engineer, closely followed by Seattle ($187,000) and the San Francisco Bay Area ($184,500). San Jose also stands out with an average of $167,420. On the other end of the spectrum, places like Omaha, Nebraska, have a lower median of $130,000. While remote work has started to narrow the salary gap between high and low-cost cities, equity still often holds greater value in more expensive areas.
Startup vs. Established
Where the Money Is There’s a common perception that public, established companies always pay more. However, for remote developers in the US, late-stage startups (Series C and D funding) can actually offer a higher median salary – around 11.5% more than public companies ($145,000 vs $130,000). This difference is even more pronounced for junior and mid-level developers (0-5 years of experience), who might earn 17.4% more at these startups. These well-funded startups often have proven business models and are keen to attract top talent. Stock options are also more frequently offered by late-stage startups compared to public companies.
The AI Factor
The rapid acceleration of Artificial Intelligence is undeniably impacting compensation. As AI skills are in high demand and short supply, engineers with this expertise can command incredibly high salaries and significant equity. While there are certainly outliers, with some AI engineers at companies like OpenAI reportedly earning total compensation packages up to $925,000 (including a median $300,000 base and $625,000 in stock-based compensation), most senior and staff-level machine learning engineers see a base salary that’s about 7% to 8% higher than that of a general software engineer. The real differential often lies in the equity component.
Programming Language Power
The specific programming languages you specialise in can also boost your earning power. In the US, some of the languages associated with the highest salaries include Go ($120,577), Ruby ($119,558), and Python ($114,904). Python is particularly valuable as it’s the number one choice for AI, machine learning, and data science applications.
Deep Dive: Software Engineer Salaries in the United Kingdom
The UK tech sector is thriving, driven by strong demand across various industries.
Average Earnings and Industry Growth
The UK’s software engineering industry has seen considerable growth, fueled by the rising need for tech professionals in finance, e-commerce, and cybersecurity. In 2025, the average software engineer salary in the UK is approximately £48,723 annually. Entry-level positions typically start around £40,000, while experienced professionals can earn up to £70,000. Some fast-growing tech firms are even setting higher benchmarks, offering between £70,000 and £150,000.
Specialised Roles and Their Value
Similar to the US, specialisation in the UK is a key driver for higher salaries. For instance, an AI Engineer can expect an average annual salary of £53,000, while a Software Development Engineer in Test (SDET) earns around £52,000. Data Engineers typically command £48,000, Full-Stack Developers £46,000, and Cybersecurity Engineers £44,000. Looking at programming languages, Ruby developers are among the highest paid in the UK at £83,354, followed by Golang (£79,726) and Rust (£73,147).
Regional Variations
Your physical location within the UK also impacts your salary. London, being the primary tech hub, naturally offers the highest average salaries at £58,000. Entry-level positions in Greater London can range from £40,755 to £81,282. Other significant tech cities like Edinburgh (£43,000) and Manchester (£42,000) also offer strong compensation. While London’s salaries are top-tier, regions like Manchester and Birmingham provide competitive pay that often aligns well with their lower cost of living.
Climbing the Career Ladder
Experience is a major determinant of salary in the UK. As you progress in your career, your earning potential increases substantially:
- Entry-Level (0-2 years): £39,000
- Mid-Level (3-5 years): £49,000
- Senior-Level (5+ years): £53,000
- Lead Engineer/Principal Engineer: £64,000
Junior software developers in the UK typically make £38,664 per year, while senior developers average £77,603.
Future Trends and Projections
The UK tech sector is poised for continued growth. We anticipate a surge in demand for specialised roles, particularly in areas like AI, machine learning, and cybersecurity, which will likely drive salaries higher in these fields. Remote work is playing a crucial role in “salary equalisation,” allowing engineers in lower-cost regions to earn competitive salaries that were once exclusive to London. There’s also a growing demand for Cloud and Full-Stack engineers. By 2025, senior AI engineers and cybersecurity specialists with over a decade of experience could potentially earn up to £200,000. The UK tech sector currently employs over 2.13 million professionals, with overall job growth projected at 0.9%.
Key Influencers on UK Salaries
Several factors contribute to your software engineer salary in the UK:
- Technical Skills and Expertise: Proficiency in high-demand programming languages like Python, Java, and C++, coupled with expertise in cutting-edge technologies like ML, AI, and blockchain, can significantly increase your earning potential.
- Company Size and Industry: Larger corporations, especially multinational tech firms, often offer more generous compensation packages, though some smaller companies and startups might provide attractive equity options.
- Educational Background and Certifications: Holding relevant degrees, such as a Master’s, or specialised certifications (like those for AWS or Azure), can demonstrate a deeper commitment and expertise, potentially boosting your salary by £5,000 to £10,000.
- Demand and Supply Dynamics: When the demand for skilled professionals outweighs the available supply, salaries naturally become more competitive.
Where Do You Stand?
There’s no getting around it: for a raw, top-line salary figure, the United States generally comes out ahead of the UK. However, the picture is far more nuanced when you factor in the cost of living. Major US tech hubs are famously expensive, meaning that a higher nominal salary might not translate into significantly greater purchasing power or a better quality of life once housing, taxes, and daily expenses are considered.
For those prioritising groundbreaking innovation, rapid career progression, and potentially astronomical total compensation packages (including substantial equity) in high-growth companies, the US tech strongholds remain incredibly compelling. But for engineers seeking a robust tech industry, competitive salaries, and a potentially more balanced cost of living, the UK presents a fantastic option. The rise of remote work and the growth of tech hubs outside of London further enhance the UK’s appeal, narrowing the historical gaps in compensation.
The world of software engineering compensation is constantly evolving, influenced by technological advancements, market demands, and geographical shifts. Whether you’re setting your sights on the dynamic US market or the flourishing UK tech scene, understanding these benchmarks is your first step towards negotiating your worth. My advice? Continuously invest in developing in-demand skills, especially in emerging fields like AI and cloud computing. Always research the market rates for your specific role, experience level, and preferred location. With a well-informed and strategic approach, you’re in the best position to secure a truly rewarding career in tech.
