The software development landscape has changed dramatically since 2020. Job listings have decreased sharply, reverting to pre-pandemic levels. However, employers remain eager to hire specialized talent in a more selective job market—and they’re willing to pay a premium for it.
Our 2025 Developer Salary Report (check the 2024 edition) explores this new reality. Let’s dive in!
The New Normal
After the investment frenzy of 2020-2022, the technology industry is undergoing a correction period. While some attribute the contraction to the increasing capabilities of AI, the truth seems more nuanced.
The great engineering divide is emerging: elite specialists commanding premium compensation at the top, product builders more frequently use AI in much leaner teams, while demand for traditional junior and mid-level engineering roles is continuously shrinking.
In 2025, AI and specialized expertise will continue to shape the tech job market. Companies are willing to pay more for engineers with in-demand skills who can effectively collaborate cross-functionally (adaptability!).
Overall salary growth in Europe is cautious.
Engineering salaries in 2025 are expected to rise by 3-5%. Across the euro area, wage increases ranged from 1.8% in France to 6.1% in the Netherlands.
Which Developer Skills and Programming Languages Are on the Rise?
Our research confirms that while AI is reshaping the industry, basic programming skills remain in high demand.
A recent Q4 study by BairesDev highlights the key technologies driving the market:
Core technologies remain essential: React, .NET, Python, Node.js, Java – essential for both traditional development and AI-powered applications.
AI-related skills are booming: Demand for machine learning is expected to grow 383% by the end of 2025, driving interest in complementary technologies such as Angular, Flutter, Kotlin and Terraform.
Data infrastructure expertise is becoming increasingly important: Companies are actively hiring professionals with expertise in Databricks, Snowflake, and MongoDB, as these platforms are essential for managing and processing large AI datasets.
As AI adoption accelerates, developers with strong data and machine learning expertise will continue to command premium salaries.
Developer Salaries in Europe in 2025
While Switzerland, Denmark, and Norway often make headlines for high salaries, several other European countries also offer competitive tech compensation – especially at senior levels or in specialized roles such as AI development, InfoSec, MLOps, and DevOps roles.
Based on our Glassdoor research, below are approximate annual salary ranges in Euros for junior, mid-level, and senior roles in selected countries across the Eurozone.
Wherever possible, we cross-referenced these figures with local job boards—such as StepStone (Germany, Austria, Belgium), InfoJobs (Spain, Italy), and Finn.no (Norway)—to account for regional variances in cost of living and market demand.
Please note that salaries can vary significantly between major tech hubs and smaller cities.
| Country | Junior (0-2 yrs) | Mid (3-5 yrs) | Senior (5+ yrs) | Notes |
| Germany 🇩🇪 | €45k – €60k | €80k – €100k+ | €80k – €100k+ | Major hubs (e.g., Munich, Berlin) often pay above these ranges, especially for in-demand AI/ML skills. |
| France 🇫🇷 | €40k – €55k | €55k – €75k | €75k – €95k+ | Paris-based roles often come with cost-of-living adjustments. |
| Netherlands 🇳🇱 | €40k – €55k | €55k – €75k | €75k – €95k+ | Amsterdam salaries can be higher; big data/AI roles can push senior pay above €110k. |
| Sweden 🇸🇪 | €40k – €55k | €55k – €70k | €70k – €90k+ | Stockholm offers higher rates; Erlang/Elixir, AI, or advanced cloud skills may command premium salaries. |
| UK 🇬🇧 | €45k – €60k | €60k – €80k | €80k – €100k+ | Though no longer in the EU, London remains a key fintech & AI hub; pay is often on par with top EU cities. |
| Spain 🇪🇸 | €30k – €45k | €45k – €60k | €60k – €75k+ | Salaries in Barcelona and Madrid are higher than national average; remote EU/US contracts can pay more. |
| Italy 🇮🇹 | €28k – €40k | €40k – €55k | €55k – €70k+ | Milan’s financial sector and growing startup scene can raise senior salaries above these ranges. |
How will companies compete for top tech talent in 2025?
As the market evolves, companies need to refine their approach to attracting top talent – especially those with strong experience and specialized skills. Here are some key strategies to consider:
In 2025, transparency has evolved from a nice-to-have to a competitive necessity. Companies that communicate compensation structures, including salary bands, bonus potential, and equity opportunities, gain significant advantages in recruitment efficiency and candidate trust. Research indicates that job postings with transparent compensation information receive 63% more qualified applicants and reduce time-to-hire by nearly three weeks.
While competitive salaries remain important, the post-pandemic workforce increasingly prioritizes a holistic employment experience. Remote and flexible work arrangements have solidified as standard expectations rather than perks.
Learning and development opportunities (upskilling, reskilling programs, opportunities for lateral moves within the company) have similarly transitioned from benefits to requirements.
As the technical talent market becomes increasingly specialized, internal recruitment teams often lack the deep networks and technical assessment capabilities needed to identify and engage top candidates. Forward-thinking organizations are partnering with specialized technical hiring agencies to gain access to pre-vetted talent pools. acework can help here. Reach out!
But don’t just take our word for it. Check out these acework’s client stories where we have helped organizations fill technical roles faster and with higher quality candidates.
CASE STUDY – Sendwave: Growing a tech scale-up, while operating remotely
CASE STUDY – MTG: How to hire DevOps and software engineers in a growing industry
acework connects hiring managers with high-quality pre-vetted candidates. We work with startups and established mid-sized companies that offer stability, flexibility, and sometimes remote working options.
