How much does a software developer earn?

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In today's digitalized world, the profession of software developer is more in demand than ever. But what about the salary for software developers? After all, companies in all sectors need qualified specialists in order to remain competitive and develop innovative solutions. That should be worth something to them.

In this article, we therefore take a detailed look at the earning opportunities for software developers in Germany. We look at starting salaries, salary trends, regional differences and various specializations.

We also take a look at the future prospects in this area, particularly with regard to advancing digitalization and the influence of artificial intelligence.

Whether you want to discover your dream job, realign your career or need a basis for your next salary negotiation - here you will find everything you need to make an informed decision.

By the way: Thanks to Education voucher you can even get further training free of charge under certain conditions.

What does a software developer earn?

To answer this question, we have divided the topic into two areas:

  1. Factors that influence your career decision but that you cannot change yourself (such as regional and industry differences - for example, you could move and choose a specific industry)
  2. Factors that you can use to actively support your career decision (a specialized qualification takes longer, but brings a higher starting salary).
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Starting salaries for software developers

As a career starter in software development, you can expect an attractive salary in Germany. According to a study by Gehalt.de, the average starting salary for software developers is 45,100 euros gross per year [1]. However, there are certainly fluctuations here, depending on various factors.

In which industry do you earn the most as a software developer?

A decisive factor is the industry in which you work. Starting salaries are often higher in the IT and telecommunications sector and in research and development than in other sectors. According to Gehaltsvergleich.com, the average starting salary for software developers in the IT sector is 48,000 euros, while in the automotive industry it is 46,000 euros [2].

The size of the company also plays a role. Large corporations such as SAP, Siemens or Bosch generally pay better salaries than smaller companies. According to a survey by Stack Overflow, the median starting salary for software developers in companies with more than 1,000 employees is 52,000 euros, while it is 42,000 euros in companies with fewer than 50 employees [3].

IndustryAverage salary (gross per year)
IT and telecommunications€60.000 – €65.000
Finance and insurance€60.000 – €65.000
Automotive industry€55.000 – €60.000
Management consultancy€55.000 – €60.000
Industry and mechanical engineering€52.000 – €58.000
Medical technology€60.000 – €65.000
Energy industry€50.000 – €55.000
Trade€45.000 – €50.000
Education and research€43.000 – €46.000

Regional salary differences for software developers in Germany

Regional differences must also be taken into account. In cities with a high quality of life and a strong economy, such as Munich, Stuttgart or Frankfurt, salaries are usually higher than in rural areas or structurally weak regions. In Munich, the average starting salary for software developers is 52,000 euros, in Stuttgart 50,000 euros and in Frankfurt 48,000 euros. In eastern Germany, on the other hand, for example in Dresden or Leipzig, the average salary is 40,000 euros [4].

Why are there such clear differences within Germany?

The regional differences in salaries for software developers in Germany can be attributed to several factors. One of the main reasons is the cost of living. In metropolitan areas, rents and prices for goods and services are generally higher than in smaller towns or rural areas. To compensate for the higher costs and remain competitive, companies in these regions often offer higher salaries.

The concentration of technology companies also plays a role. Many start-ups and large tech companies have settled in cities such as Berlin, Hamburg and Munich. These companies compete for the best talent and are often willing to pay higher salaries in order to attract and retain qualified software developers.

Again, your choice of industry can influence your career path: Areas with a strong automotive, finance or research industry that rely heavily on software development tend to pay better salaries than regions with other industry focuses.

Another factor is the economic strength of the region. In regions with a strong and diversified economy, such as Baden-Württemberg or Bavaria, the demand for IT specialists is often higher than in structurally weak areas. This high demand leads to competition for talent and therefore to higher salaries. Salaries can also be more attractive near universities with strong IT faculties due to the larger talent pool.

If you are looking for more regional opportunities, it may be worth looking into structural funding: some federal states actively invest in promoting the IT sector, thereby creating incentives for companies and skilled workers. This can have an impact on regional salary dynamics.

Your level of education influences the amount of your salary

Another decisive factor is qualifications. With a university degree in computer science or a related subject, you can often expect a higher starting salary than with an apprenticeship. According to StepStone, the average starting salary for software developers with a Master's degree is 50,400 euros, with a Bachelor's degree 45,600 euros and with training 39,600 euros [5].

Even higher qualifications, such as a doctorate, are less common in software development, but can be an advantage in certain areas, such as research and development or academic positions, and can lead to higher salaries.

However, it is important to note that a university degree is not a must for a successful career as a software developer. Many companies place more emphasis on practical skills, experience and the ability to quickly familiarize yourself with new technologies.

Through continuous further training, certifications and working on their own projects, software developers without a university degree can also improve their career opportunities and earning potential.

Infographic in blog article: Salary range software developer:in in Germany per month

Salary development for software developers

It is therefore worth starting a career as a software developer, even as a career changer. This is because the salary of software developers increases with experience.

After around three to five years in the job, junior developers can expect an average salary of 52,300 euros.

As a senior developer, usually after five to ten years of professional experience, the average salary is 63,600 euros [1]. Top earners with extensive experience and expertise in sought-after technologies can even achieve salaries of 85,000 euros and more.

The career of a software developer is characterized by continuous development and increasing responsibility. As a junior software developer, you usually start with basic programming and problem-solving tasks under the guidance of experienced colleagues. As you gain experience, you will take on more complex tasks and more responsibility, for example for the design of software architectures or the management of sub-projects.

As a senior software developer, you will often be responsible for critical projects and take on a leadership role in the team. You will be involved in strategic decisions and act as a mentor for younger colleagues.

Your salary as a Senior Developer is kindly adapted to this growing responsibility and you earn more and more: as a team leader in software development, the average annual salary is 72,000 euros, as a project manager 75,000 euros and as a department manager even 85,000 euros [9].

Those who specialize can often achieve even higher salaries. According to Kununu.com, the average salary for a Python developer is 62,000 euros, with peaks of up to 85,000 euros [6]. Java developers earn an average of 61,000 euros, C++ developers 59,000 euros and JavaScript developers 56,000 euros [7]. Salaries are also attractive in the area of SQL and backend development. An SQL developer earns an average of 56,000 euros, a backend developer 55,000 euros [8].

Is it worth specializing as a software developer?

Specialized skills and knowledge in certain areas of software development can have a strong impact on salary. Software developers with expertise in sought-after areas such as artificial intelligence (AI), cyber security, cloud computing or data science are usually in particularly high demand and can earn above-average salaries.

AI specialists are in demand across all industries as companies increasingly rely on AI-based solutions to optimize their processes and develop new business models. Cybersecurity experts are urgently needed given the growing threat of cyberattacks and data breaches. Cloud specialists are important as more and more companies move their IT infrastructure and applications to the cloud. And data scientists play a key role in analyzing and using the enormous amounts of data generated in the digitalized world.

These specializations often require additional training, certifications and practical experience. However, software developers who invest in these sought-after skills can expect a significant salary advantage. According to a survey by Stack Overflow, the average salary for AI specialists in Germany is €78,000, for cybersecurity experts €74,000 and for cloud specialists €72,000.

StackFuel offers further training and certificates in all areas. The courses often include practical projects with industry partners and are even free of charge with an education voucher.

Future prospects and effects of digitalization

The demand for software developers in Germany remains high and is expected to continue to rise in the future. The advancing digitalization in all areas of life requires innovative software solutions and qualified specialists who can develop and implement them.

In Germany in particular, there is still a great need for action in the digitalization of administration and public services. In an EU comparison, Germany is only in 21st place [10]. The German government has set itself the goal of changing this and driving forward the digitalization of the state and administration. This will require many software developers in the coming years.

The influence of artificial intelligence (AI) on software development will also continue to increase in the future. AI-based tools and automation solutions will make the development process more efficient and open up new possibilities. However, AI will not replace the profession of software developer, but rather complement and support it. Software developers who train and specialize in this area will be in particularly high demand in the future.

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Recommendations for action and conclusion

Salaries for software developers in Germany are attractive and offer good prospects for the future. As a career starter, you can expect a starting salary of between 40,000 and 52,000 euros, depending on your qualifications, industry and region. With increasing experience and specialization, the salary rises continuously and top earners can earn up to 85,000 euros and more.

To enter this exciting and promising profession and be successful, you absolutely need a solid qualification. A degree in computer science or training as an IT specialist is a good basis. Additional skills, for example in programming languages such as Python or Java or in database technologies such as SQL, are an advantage and can have a positive impact on your salary.

StackFuel can provide you with valuable support here. With practice-oriented training courses such as "Python Programmer" or "SQL - Focus Backend", you can further your education in a targeted manner and increase your chances of finding a well-paid job in software development.

The high demand for qualified software developers in Germany will continue to rise in view of the advancing digitalization and the influence of AI. Companies in all sectors are desperately looking for specialists who can develop and implement innovative software solutions. The digitalization of government and administration in particular will require many software developers in the coming years.

With the right qualifications, continuous training and a little experience, you can earn a very attractive salary as a software developer in Germany not only today, but also in the future, and work in an exciting and promising profession.

Sources:

[1] Gehalt.de - IT salaries 2021

[2] Gehaltsvergleich.com - Starting salaries for software developers by industry

[3] Stack Overflow - Developer Salary Survey 2021

[4] StepStone - Salary report 2021 for IT professions

[5] StepStone - Salary report 2021 according to qualifications

[6] Kununu.com - Salaries for Python developers

[7] Kununu.com - Salaries for Java, C++ and JavaScript developers 

[8] Kununu.com - Salaries for SQL and Backend Developers

[9] StepStone - Salary report 2021 for IT executives

[10] European Commission - Digital Economy and Society Index (DESI) 2022

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