Average salary of Software Developers in the Silicon Valley

Silicon Valley is a well-known and prominent global hub for IT, startups, and technology firms. It is ideal for software developers looking for a challenging and exciting place to advance their careers. And they are highly paid if they are skilled and qualified enough. The competitive starting salaries of the software engineers may vary depending on location and cost of living. It is because it is higher in cities with higher costs of living.

Besides location and living costs, a software developer’s salary in Silicon Valley can depend on their experience level, skills, qualifications, etc. It can also depend on whether you are a full stack, application, backend, or frontend developer. This article will discuss the topic so that you can get an idea of a career as a software engineer or developer in the global centre of technological innovation. Read on to learn more.

SV’s perspective on software engineers

The perspective of Silicon Valley companies on software developers or engineers differs from what you see in traditional companies. They differ greatly in terms of the practices they implement in their work culture and the higher wages they receive. They are given enough autonomy to contribute to the business to maintain high leverage.  

At SV-like companies, developers are expected to take the initiative and make decisions on their own. They are acknowledged in these organisations as being better at finding solutions to problems as they arise. So the leaders leave the tasks to them because they know it will benefit the company to give them access to all relevant business contexts and give them room to carry them out.

  • Companies hire programmers not only for their technical skills but also for their communication and problem-solving abilities. 
  • The software developers in Silicon Valley can work in an environment that values results over following instructions, enabling them to make better decisions. 
  • They are encouraged to engage with the rest of the company and forge connections with people other than other engineers.
  • The software engineers in SV companies encourage engineer-to-engineer communication when they question how another team does something.
  • Additionally, this process can revert to the “traditional” model of the manager assisting in problem-solving if the engineer on the other team cannot assist.
  • SV-like companies also treat technology as a profit centre, not a cost centre so the differences can be viewed from this perspective. 
  • Compared to traditional companies, they view engineers as problem solvers and value generators.

Why is there a high demand for them?

There is a high salary range for software developers in SV companies because of the high demand for their skills and the region’s high cost of living. People choose not to move to Silicon Valley because they can’t afford to live here unless companies offer them a sufficient salary. Salary increases result from companies competing for high-quality workers willing to live here. A software engineer’s salary at a tech firm may include three standard components:

  • The base pay is what you receive each month just for showing up to work. It is typically fixed and quoted annually. 
  • Cash bonuses can be given out quarterly or annually, and they typically depend on the individual’s performance during the period. Cash bonuses are frequently paid as a percentage of salary (5–30%). 
  • Long-term incentives provide something that can only be converted into cash at some point in the future. Restricted stock units, stock options, or other comparable payments are examples of these. 
  • You will receive a certain amount, typically once a year, and at some point in the future (1–5 years), these units will be exchangeable for cash at the going rate. Based on how well the company is doing, this current rate is determined. 
  • The stock price at the time the stock units become yours (also referred to as vesting) is all that matters in the case of the stock units.

Average salaries by years of experience

The average annual wage for programmers employed by SV companies is displayed in the following table, along with the number of years of experience each individual programmer has.

Years of experienceSalary per annum
Less than 1 year133,650.46 EUR
1 to 2 years137,311.20 EUR
6 to 9 years157,051.58 EUR
More than 10 years179,938.40 EUR

Average salaries according to type of developer

Here is the typical pay offered to programmers based on the kind of role they play in SV companies. Please see the table below.

Type of developerSalary per annum
Full stack developer85,664.18 EUR
Application developer101,467.68 EUR
Back End developer150,439.68 EUR
Front End developer107,714.55 EUR
.NET83,679.63 EUR
Java102,012.54 EUR
Python89,910.94 EUR
JavaScript 124,247.98 EUR
Android160,311.46 EUR
C++135,221.40 EUR

Working in Silicon Valley is more like positioning yourself among experts and the most talented and successful developers. It can have advantages and disadvantages too. You would have gotten an idea of how the programmers work there and the average salary they receive per year from the article. You can get into SV companies if you are skilled and qualified enough to adapt to their work culture, which differs from a traditional firm’s perspective. 

Interesting Links:

What are the main responsibilities of a Software Developer?

Want to become a software developer?

Pictures: Canva

The author: Sascha Thattil works at Software-Developer-India.com which is a part of the YUHIRO Group. YUHIRO is a German-Indian enterprise which provides programmers to IT companies, agencies and IT departments.

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