Table of contents
- Not all software engineer salaries are created equal; be strategic about where and how you work to maximize your earnings.
- Choose stability with big companies or gain experience and equity with startups—your career, your choice!
- Want top pay as a software developer? Move to Switzerland or the US, or work remotely as a freelancer for global companies!
Not all software engineer salaries are created equal; be strategic about where and how you work to maximize your earnings.
It's no secret that software developers are very, very well paid. In fact, today, it is one of the highest-paid and most in-demand professions in the entire world. However, it's also no secret that not all software engineer salaries are created equal. What most people fail to consider is that there are massive differences in the salaries of software engineers when considering different companies, different types of jobs, and different countries. For example, just look at these differences in the average software engineer salary at Google in San Francisco and in Paris, France. This means that just learning to code alone is not enough to land the highest-paying jobs that can pay up to $150,000 just for a junior engineer. You also need to be very strategic about how you get your job, where you work, and what country you work in.
So, let's take a look in detail at the exact process that I would follow to get the absolute highest salaries as a software engineer. After all, where's the point in working the same job for $40,000 when you could be doing that same job for $150,000? It's simply a no-brainer. First, let's talk about the kinds of companies that you're going to work for. There are big differences between what I call Big Tech companies—such as Google, Meta, and Amazon—and regular big companies that have tech jobs, like banks or any large corporation, and startups, which are new emerging companies. All of these types of companies can be extremely well-paying, but they all have their different pros and cons.
It's probably no surprise that if you simply want to earn the highest possible salary, like the highest cash compensation, your best bet is going to be working for one of the Big Tech companies or the FAANG companies. However, that doesn't necessarily mean that these are the best companies to work for if your goal is total net compensation throughout your career. The reason why these companies are going to pay the highest compensation is that they are some of the most profitable companies in the world. They have the biggest budget and make the most money, so they can simply offer their employees much more money than regular companies and therefore outbid their competitors to get the best employees. Throughout the years, it has been the case that simply by working for one of these companies for a couple of years, you can become a multi-millionaire. Although these days, the compensation isn't quite at the level it perhaps once was. I made a full video about that which you can watch here. Nevertheless, working for one of these companies is an almost surefire way to find financial wealth in this day and age. Of course, the downside is that it is much more difficult to get into these companies.
Choose stability with big companies or gain experience and equity with startups—your career, your choice!
Choosing a career path in the tech industry can be influenced by various factors, including stability, experience, and long-term earnings potential. Working for established companies can offer the benefit of stability. These companies are more likely to provide opportunities for a long career because they don't experience the same level of churn or internal competition as the Big 10 companies. While it might take longer to reach very high salary numbers, if stability is your primary concern, this could be a good option.
On the other hand, startups present a different set of opportunities and challenges. Startups are ideal for a specific type of person who is looking for more experience and equity. Although big companies might offer the best salary right off the bat, startups provide more hands-on experience and the potential for equity. If you are considering your career in the long term, focusing on gaining as much experience as possible is crucial. The smartest developers optimize for experience early in their careers because this experience will pay off the most later on.
Startups offer more experience because they are often resource-strapped, requiring employees to take on a variety of tasks. In addition to cash compensation, startups offer equity, which can be highly lucrative if the company succeeds. However, it's important to note that 99% of startups do not achieve massive success, but for those that do, the equity could be worth millions.
To achieve higher salaries and become a competent software developer, the initial goal should be to learn the right practical software engineering skills. The best way to gain these skills is through working for a company and gaining experience. However, to land your first job, you need a solid foundation in software development. Unfortunately, traditional computer science degrees often do not teach the practical skills needed in the real world, leaving many graduates unprepared.
Want top pay as a software developer? Move to Switzerland or the US, or work remotely as a freelancer for global companies!
If you're a European and your goal is compensation, your best option is going to be Switzerland. While some may argue that the US and Switzerland are more expensive, they are not significantly more so. You will still be far better off in one of these two countries than in any other place. However, if you're not European or from the US, moving to one of these countries is not simple.
One of my areas of expertise, outside of tech, is the space of moving internationally, setting up companies, and residency. I have a second channel where I discuss these topics. Moving from one country to another, especially for work, can be complex. If you're an entrepreneur or a wealthy person, the process is simpler. There are three broad ways to manage this move if you're from a poorer country like India or Southeast Asia.
The first way is to study there and get a work visa. In the US, if you study and get a degree, you automatically qualify for Optional Practical Training, allowing you to work for three years. If the company likes you, they might sponsor you for an H1B work visa, allowing you to stay longer. While I don't necessarily recommend this due to the high cost of a computer science degree, it is an option if you do the math and find it feasible.
The second way is to do an inter-company transfer from your home country. Before I left my software engineering job to become an entrepreneur, my plan was to work in the UK for a UK-based company with a presence in the US. After building trust and credibility, I intended to get an inter-company transfer to the US. This specific type of visa targets employees transferring within a company to the US. The downside is that it requires a few years of excellent performance in your home country first.
The third and increasingly best path is to work remotely as a freelancer. The rise of remote work has democratized access to high-paying jobs in software development and other industries. As a software engineer, you are no longer geographically constrained. Many companies prefer hiring freelancers on a contract basis for specific projects rather than full-time employees. This approach allows you to get paid more while living in a lower-cost area, such as Southeast Asia.
Working as a freelancer also allows you to optimize for taxes. You can base yourself in places with lower taxation like Dubai or Singapore or travel as a digital nomad without being a tax resident anywhere. This is the fastest path to high salaries and earnings, regardless of your location. However, you need the right skills to succeed. If you want to know how to acquire these skills, I recommend watching this video where I outline everything you need to learn.