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Simple Engineer Notes Simple Engineer Notes @simpleengineernotes · 154 subscribers
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🎯 How tech salaries really work and what companies actually pay \\ 2025

I’ve recently read the article. Here’s a simple breakdown, without drama(but I insist to read the source, it’s interesting)

💶Total compensation ≠ your salary

When you see $200K total comp, usually it means:
* Base salary: ~$140K
* Equity: ~$40K on paper, vests over 4 years, can be worth more or less
* Benefits: ~$15–20K (you don’t get this money directly)

The only guaranteed part is the base salary. Equity is variable. Benefits are not cash.

🛠The job market changed

2021–2022 were exceptional years: high salaries, a lot of hiring, a lot of easy money.
2025 is different:
* Mid-level roles: often $100–140K
* Senior roles: $150–200K
* Junior roles: hard to find, usually $60–90K

There are more candidates and fewer open positions, so offers became more conservative.

🗺 Geographic pay bands

Same role, same responsibilities, but pay depends on the city you live in. Companies do this not because your work changes, but because the market allows it.

👶 Junior roles aren’t really junior

Job ads often say Junior up to $120K, but the expectations look like mid-level:
* 2–3 years of experience
* Production projects
* System design basics
* On-call experience

Meanwhile, real juniors get much lower offers or struggle to get interviews at all.

🚀 Startup equity isn’t a guaranteed bonus

Equity often looks good on paper but:
* It vests over several years
* Many people leave before full vesting
* It depends on the company’s real valuation
* Exercising it may require spending thousands
* Preference stacks can reduce payouts significantly

Treat equity as a possible upside, not part of your stable income.

🎓 Titles don’t reflect pay
Senior or Staff titles vary a lot between companies. Some companies use titles instead of raises.

💰What companies really pay
* FAANG: $120–280K base depending on level
* Big startups: $100–240K base
* Series A–C: $80–200K base
* Non-tech: $60–180K

The median US software engineer salary in 2025 is around $120K base.

🤔 Final note

Software engineering is still a good career, but salary expectations should be realistic. The market is different now, companies optimize costs, and compensation packages look bigger than they actually are.

#article
Medium Software Engineer Salaries Are a Lie — Here’s What Companies Actually Pay Your salary isn’t based on your talent — it’s based on how much leverage you have.
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