Published September 26, 2023
- The software sector experienced an unprecedented two-year salary increase.
- Once among the lowest-paid in the technology sector, Berlin now boasts the highest salaries.
- Senior software engineers saw their average base salary rise from 65,000-70,000€ pre-pandemic to around 80,000-85,000€ within two years.
- Hiring trends in Germany show consistent demand for Cloud Architects due to widespread Cloud adoption.
- As Germany strengthens its cyber resilience, the demand for skilled cyber security experts remains high.
Salaries in Germany’s technology, digital, cyber and data sectors have seen remarkable increases over the past two years, according to new research by Xcede – https://www.xcede.com/salary-guide-germany-2023-2024.
Berlin, once home to some of the weakest salary levels in the country for technology, now tops the table, with software jobs in the city attracting the sector’s highest pay levels compared to anywhere else in the country.
Across Germany, entry-level salaries for front-end developers now stand at 50,000€, rising to 100,000€ for the most senior roles.
Bao Trinh, Client Services Director from Xcede attributed the salary surge in part to significant investments by venture capitalists, leading to record-breaking funding rounds.
She said: “Consequently, more companies achieved Unicorn status or reached a 1 billion euro valuation within a year of establishment.
“Companies in Berlin also offered RSUs or VSOPs in addition to base salaries to secure top talent, setting them apart from other German cities.
“The absence of similar VC funding and major US companies in these cities may explain the disparity in salary growth.
“US companies typically offer high base salaries, often supplemented with stock options, making them tough competitors for employers throughout Germany, unable to match the allure for top talent from Berlin.”
The same upward trend was noticed in other tech sectors, according to the research by Xcede.
The past 18 months have seen significant data trends influencing the business landscape in Germany, with artificial intelligence and machine learning gaining prominence as firms seek to automate processes and enhance customer experiences.
A mid-level Data Architect can now expect to earn 85,000€, rising to 140,000€ for a Head of Data Architecture, reflecting the importance businesses place on data governance and analytics.
Lucas Schrodl, Associate Director from Xcede said: “Ensuring data privacy and security became a paramount concern, with robust measures and strict adherence to GDPR compliance safeguarding personal data.
“Cloud migration and Hybrid Solutions have gathered momentum, offering scalability and cost-effectiveness, and businesses that embrace these trends will stay competitive in a data-driven market.”
One area that has seen growth stagnate this year is the product market, where inflation and the higher cost of living have had an impact. However, the survey shows a strong demand for product managers who can lead cross-functional teams to deliver successful products.
Jorden Chan, Consultant from Xcede said: “The role of a Product Manager is getting more complicated, with an emerging need for different roles and hierarchies within the product team. On top of this, product leaders need more talent to build out their function beneath them to keep up with these demands, leading to higher competition and becoming one of the most sought-after technology jobs.”
Cloud hiring trends show consistent demand and the emergence of cost optimisation roles as organisations address Cloud implementation challenges. Given the significant scale and rapid growth of the Cloud sector, Xcede’s cloud experts predict the demand for talent will continue to grow, as will the number of candidates entering the workforce, with a shortage of top-quality candidates leading to rising salary expectations for skilled professionals in the Cloud domain.
One of the most competitive areas of talent acquisition is in cyber, as organisations confront an era of persistent cyber threats. One of the highest-paid roles in the field is Security Architect, with juniors commanding salaries of 85,000€.
Alex Candeland, Regional Director from Xcede said: “Organisations are aggressively seeking professionals with advanced threat detection, incident response, and risk mitigation expertise. Additionally, there is a growing emphasis on individuals proficient in securing cloud environments, managing data privacy regulations, and implementing robust security architectures.
“Companies are offering competitive compensation packages, career growth opportunities, and investing in continuous training programs to attract and retain such talent. As Germany strengthens its cyber resilience, the demand for skilled cyber security experts remains high, making it an exciting time for professionals seeking to make a meaningful impact in protecting digital assets.”
Xcede connects companies with exceptional professionals that empower growth.
Founded in 2003, Xcede’s specialists provide global transformational talent in Data, Product, Software, Cloud and Cyber. They work with businesses, from pioneering start-ups to international brands, to find project-based or permanent talent that enables innovation in line with their vision and goals. Their experts operate across these key areas, focusing on delivering excellence and expertise for our clients, candidates and colleagues.