Developers’ salary level in Finland increased in 2022. This was affected by inflation, talent shortage, and the new collective agreement of the IT service sector.
In Koodiklinikka’s annual salary survey, the median salary for a software developer was 5100 euros per month. Compared to 2021, the median salary increased by 13 percent, i.e. 600 euros.
In 2022, also a new collective agreement of the IT service sector was concluded. The national collective agreement of the IT sector agreed on a 1.8 percent salary increase, yet Union of Professional Engineers informed an average 2,45 percent increase in salaries. To retain the IT talent, companies raised salaries at least as much as competitors.
We at Talented have met thousands of software developers and talked about salary with every single one of them. Most of the developers we meet have worked at Finland’s most attractive workplaces in senior or lead roles. At the same time we have been talking with hundreds of employers, from startups to listed companies. Discussions on both sides of the table keep us informed about the current salary levels and developers’ aspirations. So, how does developers’ salary level in Finland look like in 2023?
Developers’ Salaries in Finland
The gross monthly salary for experienced software developers is between €4,800 and €6,000. Roughly speaking, we have noticed the following wage ranges by experience level:
Junior Developer: 3500 – 4400 €
Developer: 4200 – 5500 €
Senior Developer: 5300 – 7000 €
Architect/Lead Developer: 5800 – 8000 €
The salary levels are a few hundred euros lower outside the capital area.
When it comes to fixed salaries, the amount of money earned correlates directly with the benefit that the employee generates for the company. At the top of the range tasks often involve responsibility in strategic planning, sales or team leading. Developers who make above-average salary can also have niche expertise or their salary can be partially based on commission.
Commission based salary refers to a model in which part of the salary is tied to the work carried out, for example the employee’s personal monthly billing from the customer. In commission based salary model, employee’s experience and competence affect the salary greatly. Projects sold at a higher hourly rate generate more euros for the company, but also benefit the employee directly in the form of higher monthly salary. If, on the other hand, the employee is away from work a lot (e.g. sick leave) or the client is not willing to pay for their expertise, the commission based salary will be reflected in a lower than average wage.
One can increase their salary level by, for example, learning new skills, pursuing a senior or lead role, or changing jobs.
Examples of different commission based salary models in Finnish IT companies
Mavericks model, 50,7% of invoicing to the consultant
100 €/h * 158 * 50.7% =8010,6€
Fixed €3,500/month + 10% of personal billing
3500 € + 95 €/h * 158h * 10 % = 5001 €
3500 € + 110 €/h * 158 h * 10 % = 5238 €
Fixed €3,000/month + 10-20% of personal billing
3000 € + 95 €/h * 158 h * 10 % = 4501 €
3000 € + 110 €/h * 158 h * 20 % = 6476 €
If your current salary level falls notably below these ranges, it may be wise to discuss the issue with your employer or to switch jobs.
Talented helps software professionals to explore the job market and find the work opportunities that fit one’s needs and career ambitions. We help you see past the hype and save you time and trouble by providing objective information on IT employers and their cultures, recruitment processes and salaries. When you have the information, you can make the right career decision.
Talented has been disrupting IT recruitment since 2016. We get senior software talent the best jobs and help companies to attract, recruit and retain the best software professionals through Talent Acquisition and Employer Branding.