Software engineering salary has hit remarkable new levels, with tech giants like Google and Amazon now offering up to $301,000 annually to their engineers.
The average software engineer in Australia earns $124,500, while US engineers make substantially more at $161,000 per year. The software engineering field will grow by 17% between 2023 and 2033, which is nowhere near other professions’ growth rates. AI literacy has become crucial as 76% of developers now use AI tools in their daily work.
Money is just one part of this story. Entry-level positions start at $132,000, and senior roles can reach $190,000 per year. Software engineering compensation varies based on experience, location, and specialization. Here are 15 surprising insights that will reshape the industry in 2025.
Entry-Level Software Engineering Salary
Fresh software engineering graduates now earn base salaries of $128,338 in their first year. Their additional pay averages $27,073, which brings total compensation to $160,872.
Starting Salary Trends 2025
New software engineers have great earning potential right from the start. Entry-level positions with 0-2 years of experience pay between $60,000 and $80,000. Early-career professionals with 1-4 years of experience take home an average total compensation of $125,394. The biggest tech companies offer even better packages. Google’s compensation ranges from $324,145 to $460,226, while Microsoft offers between $267,573 and $370,015.
Experience Requirements
The education breakdown for software engineers shows that 73% have bachelor’s degrees, 20% hold master’s degrees, and 4% have associate degrees. You need to know programming languages, frameworks, and software development tools. Getting practical experience through internships and co-op programs is a vital step to land entry-level roles.
Top-Paying Cities for New Grads
San Francisco tops the list with entry-level software engineers earning around $229,940. New York City comes in close at $226,501, and Seattle follows with $206,852. Here’s what other tech hubs offer:
- Austin: $158,803 for software engineers
- Boston: $178,298 for entry-level positions
- Denver: $172,231 for new graduates
Location and market demand drive these salary differences. San Francisco pays 31% above the national average, while New York City offers 23% more. Remote work is also a great option, with average salaries reaching $224,608.
Remote Work Revolution’s Impact on Pay
Software engineering compensation has changed dramatically with the rise of remote work. Tech salaries grew by 3.6% overall. The growth varied by a lot between different regions and companies.
Global Salary Adjustments
Remote software developers make an average of AUD 108,370 yearly. North American developers lead the pack with AUD 126,534, while Oceania follows closely at AUD 131,499. Latin American developers earn between AUD 45,869 and AUD 91,739 per year. These numbers show huge differences in regional pay scales.
Location-Independent Pay Scales
Some companies now use location-independent pay structures. Basecamp targets its pay at the 90th percentile of San Francisco market rates. Buffer dropped location-based salary bands, which led to pay increases for all but one of these team members. The average bump was AUD 15,695.
Remote Work Benefits Package
Remote employers now give complete benefits packages on top of base salary. Recent data shows 44% of remote workers value schedule flexibility most, while 32% care more about better health benefits. Today’s remote work packages typically include:
- Healthcare coverage with telemedicine options
- Home office stipends for workspace setup
- Wellness programs and mental health support
- Coworking space allowances
- Professional development funds
Companies that offer detailed remote work benefits saw employee engagement jump by 21%. Some professionals take lower pay to work remotely. In spite of that, employers with remote positions keep their pay competitive, and 30% of remote workers got raises when they switched to remote roles.
Remote work has pushed organizations to rethink how they pay people. Some companies stick to location-based pay scales based on local living costs. Others use universal pay structures that only look at role and experience. This change in pay structures keeps shaping the software engineering industry and creates opportunities for professionals in markets worldwide.
Industry-Specific Salary Variations
Image Source: LinkedIn
Software engineering compensation in 2025 shows some interesting patterns across industries. Each sector, from fintech startups to healthcare organizations, sets its pay scales based on specific requirements and market needs.
FinTech vs Traditional Banking
Software engineers at fintech companies earn AUD 45,130 on average, while those in traditional banking make AUD 36,593. About 41% of fintech positions list salaries above AUD 50,000, compared to just 20% of traditional banking roles. Fintech firms compete with both traditional banks and tech giants for the best talent, which explains this difference.
Traditional banks show broader salary ranges. Their lower limits often fall below half of their upper limits. Goldman Sachs leads the pack with the highest lower and upper limits for software developer salaries among traditional banks. Fintech roles need more experience – usually 8-10 years, while banks are more flexible with their requirements.
Healthcare Tech Premium
Software engineers in healthcare earn impressive salaries. Those with bachelor’s degrees see median compensation of AUD 166,690. Senior roles pay even better, ranging from AUD 110,087 to AUD 258,399. The sector looks set to grow 25% from 2021 to 2031, which is much faster than average occupation growth rates.
Gaming Industry Compensation
The gaming industry rewards developers differently based on their platform focus. Mobile game developers start at AUD 107,029 and can move up to AUD 152,899 in mid-level positions. PC and console game developers get higher starting pay between AUD 91,739 and AUD 122,319.
Senior game developers can earn over AUD 183,478. Lead positions are particularly rewarding, with pay reaching AUD 382,247. Your salary in gaming depends on several factors:
- Project complexity and budget
- Platform specialization (mobile, console, or PC)
- Company size and reputation
- Geographic location
Software engineering offers unique pay structures in these industries. Each sector’s specific needs and growth path shape its compensation approach.
Cloud Engineering Premium
Image Source: Zero To Mastery
Cloud engineering professionals are among the highest-paid tech workers in 2025. Companies offer premium compensation packages to cloud specialists of all types as cloud adoption continues to rise.
AWS Specialist Salaries
AWS developers can earn between AUD 143,725 and AUD 214,058. The compensation for cloud support engineers at AWS ranges from AUD 152,900 to AUD 214,060. Solutions architects receive packages between AUD 236,990 and AUD 386,830.
Senior positions come with higher rewards:
- Cloud architects: AUD 244,640 to AUD 348,610
- Senior solutions architects: AUD 374,600 to AUD 501,510
- Technical account managers: AUD 198,770 to AUD 412,830
Multi-Cloud Expertise Value
Multi-cloud specialists earn premium compensation packages. Most organizations (76%) now use multiple cloud platforms. Professionals who know multiple cloud providers earn AUD 145,254 to AUD 183,478. Senior positions can reach AUD 275,218.
These factors boost multi-cloud salaries:
- Skills in AWS, Azure, and Google Cloud platforms
- Understanding of cloud security and compliance frameworks
- Ability to optimize costs and automate infrastructure
DevOps Integration
Entry-level DevOps engineers with cloud expertise earn AUD 137,609 to AUD 175,833. Senior roles can reach AUD 244,638. Cloud DevOps specialists receive annual packages of AUD 159,044 to AUD 191,291.
Education plays a big role in DevOps salaries:
- Bachelor’s degree holders: AUD 156,346
- Master’s degree holders: AUD 168,289
- Doctorate degree holders: AUD 180,246
The industry expects 14.1% growth from 2023 to 2030. This growth comes from the increasing need for infrastructure automation, security compliance, and AI-driven cloud solutions. Companies look for professionals with certifications in cloud architecture, security specialties, and DevOps engineering.
Blockchain Developer Pay Surge
Blockchain developer salaries have hit record highs in 2025. Annual compensation packages now range from AUD 113,150 to AUD 402,120. Financial institutions, tech companies, and startups are driving this growth.
Cryptocurrency Projects
Experience levels shape the base salaries of blockchain developers. Junior developers take home between AUD 113,298 and AUD 151,064. Senior developers can earn packages up to AUD 339,894. A new peak of AUD 438,820 was reached in February 2025.
The field offers great growth opportunities through:
- Performance bonuses: AUD 18,883 to AUD 28,324
- Equity compensation: Up to AUD 18,883
- Healthcare benefits: About AUD 13,218 yearly
Smart Contract Development
Smart contract specialists earn premium pay rates between AUD 47.40 and AUD 198.77 per hour. Mid-level developers make AUD 151,064 to AUD 226,596. Senior positions offer AUD 226,596 to AUD 339,894.
Market strength shows in these numbers:
- Companies post six new smart contract developer jobs monthly
- Each position attracts 158 applicants on average
- Remote work makes up 64% of opportunities
Web3 Expertise Premium
Web3 developers earn between AUD 107,029 and AUD 535,146. These figures reflect their expertise in building decentralized applications. Jobs span automotive tech, healthcare, robotics, and gaming industries.
Skills that lead to higher pay include:
- DeFi protocols expertise
- Cross-chain development proficiency
- Layer 2 solutions knowledge
- Zero-knowledge proofs implementation
Benefits packages are complete with flexible hours, home office allowances, and professional development budgets. Remote blockchain jobs pay well whatever your location. Expert predictions show 17% field growth through 2033, highlighting the strong future of blockchain careers.
Full-Stack Developer Market Value
Full-stack developers are the most versatile professionals in software engineering. They earn high compensation packages in various technology stacks. The average full-stack developer makes AUD 139,884 annually. Experienced professionals can earn between AUD 302,740 to AUD 466,342.
Cybersecurity Expertise Premium
Cybersecurity expertise brings premium salaries in software engineering roles. Mid-level professionals earn between AUD 152,899 and AUD 214,058. Senior cybersecurity analysts receive packages worth over AUD 229,348, which shows how crucial digital defense has become.
Mobile Development Specialization
Mobile development specialists earn distinctive salaries based on their platform expertise. Android developers earn an average of AUD 124,446 per year. The field offers numerous opportunities with 30 million mobile app developers worldwide.
Future Salary Projections
Software engineering salaries will see major changes through 2026 as new technologies reshape the market. U.S. tech companies plan to fill about 300 software engineer positions on average, showing a 12% rise from last year.
Software development jobs will grow by 17% from 2023 to 2033, faster than most other jobs. Each year will bring roughly 140,100 new positions. The Australian tech sector looks set to grow by 5.9% in the next five years.
Emerging Technology Effect
AI continues to shape future pay scales. Automation will replace 85 million jobs worldwide by 2025. This change brings new opportunities:
- AI helps developers work more efficiently on complex tasks
- AI-powered development helps fill talent gaps
- Companies need more AI engineers, data scientists, and machine learning experts
Beyond AI, skills in blockchain, augmented reality, virtual reality, and Internet of Things command higher pay. These technologies create new fields that expand job opportunities in many sectors.
Software engineering shows strong growth potential, with over 250,000 new developer positions expected. Success depends on skills in new technologies, as Python developers now earn about AUD 164,485.71 yearly. The future looks bright for developers who have the right skills and experience.
Comparison Table
| Category | Average Base Salary Range (AUD) | Key Growth/Trend Metrics | Notable Premium Factors | Geographic Variations |
|---|---|---|---|---|
| Entry-Level Software Engineer | 60,000 – 80,000 | 17% growth (2023-2033) | Google offers 324,145 – 460,226 | San Francisco: 229,940; NYC: 226,501 |
| Remote Work | 108,370 – 131,499 | 3.6% overall salary rise | Location-independent pay structures | North America: 126,534; Oceania: 131,499 |
| AI Integration | 165,088 – 244,638 | 76% developers use AI tools | Up to 25% wage premium | Meta: 343,307; Apple: 311,527 |
| Industry-Specific | 166,690 – 258,399 | 25% growth (2021-2031) | FinTech: 45,130 vs Banking: 36,593 | Healthcare varies by region |
| Startup vs Big Tech | 152,900 – 183,480 | Under 5% layoff risk in big tech | Equity: 0.1% – 0.5% ownership | Big tech RSUs: 611,600 – 1,223,190 |
| Cloud Engineering | 143,725 – 214,058 | 14.1% growth (2023-2030) | Multi-cloud expertise bonus | AWS architects: 236,990 – 386,830 |
| Blockchain Developer | 113,150 – 402,120 | 17% growth through 2033 | Smart contract experts: 47.40 – 198.77/hour | Peak earnings: 438,820 |
| Full-Stack Developer | 139,884 – 466,342 | Double-digit growth for Ruby | Framework expertise bonuses | Durham: 249,973; San Francisco: 240,071 |
| Cybersecurity | 152,899 – 214,058 | 15.29T cybercrime costs by 2025 | Security clearance: 10-20% bonus | Healthcare sector: 305,798 |
| Mobile Development | 88,680 – 209,470 | 30M mobile developers worldwide | Android developers earn 6,880 more than iOS | Cupertino iOS: 233,935 |
| Consulting vs In-House | 82,565 – 214,058 | N/A | Consulting rates: 305.80 – 535.15/hour | Enterprise consultants: up to 1,299.64/hour |
| Education vs Experience | Entry-level gap: 35% | 50% higher with Master’s degree | AWS certification: up to 229,348 | N/A |
| Gender Pay Gap | Women earn 82 cents per dollar | 21.8% total remuneration gap | Public sector gap: 13.5% | Oil & gas gap: 102,691.57 |
| Negotiation Success | Base increase: 10-20% | 66% never negotiate pay | Extra stock options & benefits | N/A |
| Future Projections | 164,485 (Python developers) | 17% growth (2023-2033) | AI integration bonus | 5.9% growth in Australian tech sector |
Conclusion
Software engineers can earn anywhere from AUD 60,000 in entry-level roles to AUD 466,342 as experienced full-stack developers. Your technology expertise will shape your earning potential. This is especially true in emerging fields like artificial intelligence, blockchain, and cloud computing, where specialists earn up to 25% more than standard rates.
Software engineers who blend technical know-how with business sense have an edge in today’s digital world. Their adaptability to new technologies is crucial for career growth and better pay. This is clear from how 76% of developers now make use of AI tools in their work.
FAQs
Q1. What is the typical salary range for experienced software engineers? Experienced software engineers can earn between AUD 150,000 to AUD 400,000 annually, depending on their specialization, location, and company. Top performers in fields like AI and cloud computing often command salaries at the higher end of this range.
Q2. How does remote work impact software engineering salaries? Remote work has generally led to competitive salaries for software engineers, with average compensation packages ranging from AUD 108,000 to AUD 131,000 annually. Some companies offer location-independent pay scales, while others adjust salaries based on the employee’s location.
Q3. What effect does AI expertise have on software engineering compensation? AI expertise can significantly boost a software engineer’s earning potential, with specialists often receiving a 25% premium over standard software engineering salaries. Proficiency in machine learning, deep learning, and AI engineering is particularly valued in sectors like finance and healthcare.
Q4. How do salaries compare between startups and established tech companies? While established tech companies often offer higher base salaries, startups typically provide equity compensation that can lead to substantial returns. Entry-level positions at startups may offer AUD 150,000 to AUD 180,000, while big tech companies can offer packages exceeding AUD 300,000 for similar roles.
Q5. What are the salary projections for software engineers in the coming years? The software engineering field is projected to grow by 17% from 2023 to 2033, outpacing average occupation growth rates. This growth, coupled with increasing demand for specialized skills in areas like AI, blockchain, and cloud computing, suggests continued strong salary potential for software engineers in the coming years.
