Remote vs Office: Software Engineer Salary Comparison
- Remote software engineers earn more: On average, remote roles pay 21.9% higher than office-based positions.
- Stability during economic shifts: Remote salaries remained steady during tech layoffs in 2022, while office salaries fluctuated.
- Top remote salaries by location:
- San Francisco: $180,000
- Seattle: $174,000
- New York: $167,000
- Office salaries by state:
- California: $137,142
- Washington: $130,577
- Maryland: $118,242
- Entry-level to senior pay range:
- Entry-level remote: $112,221
- Senior remote: $175,000+
Quick Comparison
| Criteria | Remote Salary | Office Salary | Difference |
|---|---|---|---|
| Average Base Pay | $133,962 | $137,311 | -$3,349 |
| Top City (SF Bay) | $180,000 | $176,000 | +$4,000 |
| Stability (2022) | Stable | Fluctuated | N/A |
| Entry-Level Pay | $112,221 | Not detailed | N/A |
| Senior-Level Pay | $175,000+ | Not detailed | N/A |
Remote roles offer higher pay, flexibility, and stability, while office roles vary by region and come with in-person perks like team events and on-site amenities. Choose based on your priorities.
the hidden costs of going remote as a software engineer
Current Salary Data: Remote vs. Office
Between 2022 and early 2025, software engineer salaries have shown clear differences between remote and office roles. Let's break down the compensation trends for each category.
Remote Salary Changes
Remote software engineering roles have maintained competitive pay, with an average base salary of $133,962 per year [2]. Despite economic fluctuations, remote positions have shown consistent salary levels, demonstrating their stability in the job market.
Josh Brenner, CEO at Hired, highlights this trend:
"To win top engineering talent, companies have to offer increasingly competitive salaries, flexibility, and most importantly, extend their talent pipelines outside of traditional technology hubs to other regions globally." [8]
This shift in hiring practices has opened up opportunities for companies to tap into talent across different regions, influencing salary trends globally.
Office Salary Patterns
Salaries for office-based engineers vary significantly by region. The national average for office-based roles is $137,311, with total compensation averaging $156,124 [6].
Here's a breakdown of annual salaries across major states in 2025:
| State | Annual Salary |
|---|---|
| California | $137,142 |
| Washington | $130,577 |
| Maryland | $118,242 |
| Colorado | $114,142 |
| Massachusetts | $107,740 |
| New York | $106,219 |
These numbers highlight the regional pay disparities common in office-based roles. Location adjustments often play a significant role in determining salaries, with states like California and Washington offering higher compensation compared to others.
In 2023, the Bureau of Labor Statistics reported a median pay of $130,160 per year (or approximately $62.58 per hour) for software developers [4]. Looking ahead, the Bureau projects a 26% growth in software development jobs by 2032, adding 410,400 new positions [5]. This growth is likely to keep salaries for both remote and office roles on an upward trajectory.
Location Impact on Pay
Geography plays a big role in shaping software engineer salaries. Whether you're working remotely or in an office, where you (or your company) are based can significantly influence your paycheck.
Best-Paying Cities for Remote Work
Remote software engineering jobs often pay more than office-based roles in many major U.S. cities. Leading the pack is the San Francisco Bay Area, where remote positions average $180,000 per year. Seattle follows closely at $174,000, with New York at $167,000 [1].
Philadelphia has also gained attention, with remote roles averaging $148,000 annually - showing a 7% increase compared to the previous year [1].
While remote salaries in these cities are impressive, office-based roles in traditional tech hubs also show competitive pay trends.
Major Tech Hub Salaries
Office-based roles in well-known tech hubs generally offer strong compensation, though they often trail remote salaries by a small margin. Here's a breakdown of how salaries compare across key cities:
| City | Office-Based Salary | Remote Salary | Difference |
|---|---|---|---|
| San Francisco Bay Area | $176,000 | $180,000 | +$4,000 |
| Seattle | $169,000 | $174,000 | +$5,000 |
| New York | $161,000 | $167,000 | +$6,000 |
| Los Angeles | $159,000 | $164,000 | +$5,000 |
Remote roles have shown more stability during economic shifts [1]. Big names like Stripe, Amazon, and Oracle have set up remote engineering hubs across the U.S. [7], further boosting salaries for remote positions. On average, remote software developers in the U.S. make $96,999 annually [7], though this can vary widely depending on location and company policies.
Key Salary Determinants
Remote Work Pay Policies
When it comes to compensating remote software engineers, companies follow different models. The two most common are location-indexed salaries and location-independent salaries, each influencing earning potential in distinct ways.
Here’s how some major tech companies approach remote pay:
| Company | Pay Policy | Benchmark |
|---|---|---|
| Basecamp | Location-independent | 90th percentile of SF market |
| Buffer | Location-adjusted | 50th percentile of SF market |
| GitLab | Complex calculator | SF-based with location factors |
| Zillow | Location-agnostic | National market rates |
Some companies, like Meta, Google, and Microsoft, lower salaries when employees move from expensive areas such as Silicon Valley. Others, like Basecamp, maintain consistent pay no matter where employees relocate. Basecamp's CTO, David Heinemeier Hansson, shared his perspective on this:
"We've had many employees over the years who've moved around. I can't imagine telling someone they're getting a pay cut because they moved." [9]
Beyond company policies, individual experience and specialized skills play a major role in determining compensation.
Skills and Position Level
The level of experience and specific skills significantly influence remote salaries. Below is a breakdown of average salaries by position:
| Position Level | Average Remote Salary |
|---|---|
| Junior Software Developer | $55,200 |
| Software Engineer | $146,900 |
| Senior Software Engineer | $177,551 |
| Principal Software Engineer | $212,882 |
| Director of Software Engineering | $225,048 |
Specialized roles often come with higher pay. For instance, Machine Learning Engineers earn an average of $187,824 annually, while Blockchain Developers command $217,500. Leadership positions, like CTOs, can reach as high as $274,825 [3].
Juan Pablo Buriticá provided thoughtful commentary on factors influencing pay:
"I believe compensation should consider responsibilities and effort over location. A remote worker and an office one may have the same job, while requiring them to do different tasks to meet their expectations; and this should be factored into how they're compensated. This doesn't mean one mode is worth less than the other. If you require me to commute to an office, I may have higher compensation expectations because it's additional effort. The same works if you ask me as a remote worker to adapt to HQ's core hours over my local one. A one-dimensional approach to compensation can disadvantage some workers over others if the efforts are different, and this should be considered to build an equitable workplace." [9]
Certain technical skills are particularly sought after, including JavaScript, Java, SQL, Python, .NET, and front-end development. However, only 1–3% of engineers specialize in these areas, making them highly valuable [3].
Extra Benefits Comparison
Remote Work Perks
Remote software engineers not only earn competitive salaries but often receive additional financial perks. On average, fully remote developers earn 21.9% more than those who rarely work remotely [12]. Many employers also cover costs like equipment and internet to help maintain productivity. Interestingly, 60% of respondents in a study reported feeling more productive after transitioning to remote-first setups [11]. On the other hand, office roles come with in-person benefits that add value to the overall compensation package.
Office Work Benefits
For engineers working in-office, perks often include:
| Benefit Category | Examples |
|---|---|
| Office Amenities | On-site gyms, cafeterias, or wellness spaces |
| Meals & Snacks | Free meals or snack programs |
| Transportation | Transit passes or parking reimbursements |
| Equipment | Standardized workstations and IT setups |
| Team Events | Social gatherings and team-building activities |
Office settings also provide opportunities for face-to-face communication, mentorship, and networking that can boost career growth [10].
Both remote and office roles offer appealing perks. Remote work emphasizes higher pay and flexibility, while office environments focus on hands-on resources and direct collaboration opportunities.
Living Cost Pay Adjustments
Software engineer salaries differ based on location, with companies tailoring compensation to reflect regional cost variations.
Remote Pay by Location
Companies use three main approaches to calculate remote salaries:
| Pay Model | Description | Example Companies |
|---|---|---|
| Location-Based | Adjusts pay according to local market rates and costs | Buffer (50th percentile SF baseline) |
| Global/Universal | Offers the same salary regardless of location | Basecamp (90th percentile SF baseline) |
| Hybrid | Combines multiple factors into a complex formula | GitLab (location + experience + contract type) |
Remote salaries can vary significantly depending on the region. For instance, North American remote developers earn an average of $82,757 annually, while their counterparts in Western Europe make $69,720, and developers in India average $48,918 [7][15].
"Moving is super tricky with local pay. It works out best if the employer and employee are very clear upfront of the entire employment about how they deal with this. Generally, they accept that pay is based on market forces and that if those change, pay might follow."
– Job van der Voort, CEO, Remote Employ [13]
On the other hand, salaries for office-based roles are generally determined by the local market.
Office Location Pay Rates
For office-based positions, salaries typically align with local market conditions and living expenses. For example, a Senior Software Engineer in Mountain View, CA, earns a median salary of $158,500, whereas the same role in Warsaw, Poland, offers $36,373 [14].
Companies use a variety of strategies to determine office pay:
- Market-Based Pricing: Matches salaries to local competitive rates.
- Cost-of-Living Index: Adjusts pay based on regional expenses.
- Headquarters Benchmark: Uses the main office location as a reference point.
"We considered a location-agnostic model, but we wanted to attract the best possible teachers, which meant we'd have to pay everyone the same, and we wouldn't have been able to attract some people in higher-cost-of-living areas. Our financial model has a certain average we needed for teacher salaries, so this helps us stay within the model and attract high quality talent."
– Kristen Shroff, CEO at Prisma [14]
Some companies are shifting away from rigid location-based pay adjustments. As bethanye McKinney Blount, founder and CEO of Compaas, explains:
"We've talked to hundreds of companies about their compensation strategies for remote teams, most of which have hybrid structures. What we are seeing is that many companies with local pay models adjust for a new location if an employee moves, unless they ask the employee to relocate. If it's the employee's decision, they recalculate their compensation to be in line with the local market."
– bethanye McKinney Blount, founder and CEO, Compaas [13]
Conclusion
Recent statistics reveal that remote developers earn an average of 21.9% more than their office-based counterparts, even maintaining a 9.4% pay premium after accounting for adjustments [16].
These numbers highlight how location impacts salaries. For example, engineers based in San Francisco can earn up to $180,000 in remote roles, while cities like Philadelphia are showing rapid growth as emerging tech hubs [1].
This trend shows no signs of slowing down. The median total compensation for remote roles recovered to $170,000 by August 2023 [17]. While remote workers initially earned about 8% less than office-based engineers, that gap has significantly closed over time [17].
With the software development industry projected to grow 17% by 2033 [18], engineers should weigh factors like location, experience, and lifestyle when deciding between remote and in-office roles. Both options can lead to competitive pay and rewarding career paths.
FAQs
::: faq
Why do remote software engineers often earn more than those in office-based roles?
Remote software engineers frequently earn higher salaries due to several key factors. Companies hiring remotely can tap into a larger, more competitive talent pool, which often drives up compensation. Additionally, some organizations are moving away from strict location-based pay scales, offering higher salaries to attract top talent regardless of geography.
Remote roles also tend to attract more experienced professionals, which can further increase average pay. In the U.S., the average salary for a remote software engineer is approximately $146,900, reflecting these trends. :::
::: faq
How do companies set salaries for remote software engineers based on their location?
Companies often determine salaries for remote software engineers by considering factors such as location, experience, and demand for specialized skills. Some employers adjust pay based on the cost of living in the engineer's area, while others maintain salaries tied to high-cost cities, regardless of where the employee resides.
In the United States, the average base salary for a remote software engineer is $146,900, with additional cash compensation averaging $19,347, bringing total compensation to approximately $166,247. Experienced engineers with 7+ years of expertise can earn even more, with an average salary of $177,303. Ultimately, pay can vary widely depending on the role, skills, and company policies. :::
::: faq
What should software engineers consider when comparing salaries and career growth in remote vs. office-based roles?
When comparing remote and office-based software engineering roles, it's important to evaluate both compensation and career growth opportunities.
Remote roles often offer competitive salaries, with U.S.-based software engineers earning an average of $146,900 annually, and total compensation (including bonuses) reaching up to $166,247. Senior engineers with extensive experience can earn even more, with averages exceeding $177,000. However, pay can vary depending on factors like location, company policies, and job market demand.
For career growth, office-based roles may provide more opportunities for in-person collaboration, mentorship, and networking, which can be beneficial for professional development. On the other hand, remote work offers greater flexibility and access to a wider range of job opportunities, allowing engineers to work for top companies regardless of location. Ultimately, the choice depends on your career goals, work preferences, and lifestyle priorities. :::
