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Software engineers in Latin America are now looking at a different landscape than they were just a few years ago regarding salaries, benefits, and opportunities within their careers.
With more technology companies looking past their borders into other parts of the world for senior development talent, more doors open for technology professionals to find that work-life balance with benefits and a higher paid salary to go with it!
Our first post in this series took a look at what our Compensation and Benefits report found for those senior programmers working from home in Brazil. For our next stop, we'll check out what our report had to say about salaries for remote engineers working in Argentina. Let's get into it!
Global view of Software Engineer salary
So how much do developers tend to make as remote workers, on average, you may ask? After compiling the data, which considers programmers in Latin America, our survey found that the expected median annual salary for remote senior engineers is about USD 84,000.
However, when we view the average expected vs. current salary, we find a gap of 27% by the end of the year 2022. This gap shows that remote job offerings differ significantly between local jobs and remote jobs in LATAM.
Source: 2023 Tech Salaries and Benefits Trends: Q4'22 Report
Why the gap?
This gap is due to several factors. One is the increase in demand for higher salaries among experienced technology professionals. After the world began working from home due to the pandemic, it blurred the lines of how workers are compensated. No longer are borders considered a factor in overseas payroll.
Tech professionals in Latin America and worldwide realized they could do their jobs from anywhere. Likewise, companies realized that they could hire developers from anywhere and that LATAM in particular offers a wide pool of top-skilled developers with excellent English. So, the demand for tech talent in the region saw an immense takeoff, resulting in companies having to offer higher salaries and more benefits to recruit and retain the talent. Moreover, engineers started asking for proper compensation and benefits that matched their IT skills and expertise, not their geographical location.
Rapid growth causes delays in salary increases
Due to the increase in median remote salaries, some companies haven't been able to adjust to this promptly. In addition, the need for more outsourcing has been growing exponentially in the past three years
This rapid growth was unexpected and unprecedented, leaving many companies lagging behind in innovation and trying to adapt to match the current environment and job market demand in order to retain talent and avoid employee turnover.
Differences in median remote earnings from Argentina
The competition is tough. You now aren't only competing with your local peers and environment but with tech talent from around the world. For those developers looking to start their digital nomad life by working from Argentina, you will find that there is potential to earn a lot more working remotely with a nearshore US Company, rather than for a local company.
When you look at senior engineers’ salaries in Argentina, remote jobs are expected to pay USD 84,000 while US developers are costing USD 173,000 on average
Technology companies are looking to hire the best talent around, and they aren't afraid to pay employees what they are worth. As a result, high-paying jobs come to those that can demonstrate knowledge and skill.
Benefits becoming a norm for remote workers
Stock option plans, payment in cryptocurrency, and company-provided equipment are some of the benefits that our survey found more and more companies are offering to independent contractors.
Moreover, money and investments aren't the only benefits to consider! Many of the benefits traditional workers would receive, such as paid time off, vacations, and career growth and support opportunities are now becoming the standard in a job compensation package.
The work environment for independent contractors had been lacking in the types of benefits provided, and often contractors felt those benefits were out of reach.
However, remote employees are finding their voice and, thanks to the rise in the demand for remote tech roles in the region, among others, they are now being better compensated.
Demand for your role matters
Software engineer salaries see a 27% gap in what Argentina-based tech companies can offer compared to US companies. However, this gap can be even wider dependent on the role. Currently, senior Full-Stack, Back-End, and Mobile Developer salaries show a salary gap of 40%.
The gap in the senior software engineer salaries is closing due to the demand for that particular role. Your IT skills, education, and level of experience affect how wide or narrow the salary gap can be. As the need for different technical roles changes, so do the compensation rates.
Why Argentina is becoming a digital nomad paradise
When considering remote work from Argentina, you're looking at working in one of LATAM's fastest-growing countries in tech services and talent. It's highly sought after for the opportunity to work for innovative nearshore companies and have a more balanced life.
Argentina's cost of living for digital nomads is a little less than Brazil's; however, it's still considered a place where you can live very comfortably. That means that even at the current median salary in USD, your money can go a bit further than what it would in, let's say, the United States.
The opportunity to stretch your career growth potential compounds when you learn and adapt to changing circumstances. In Argentina, they understand this, and because of this, there are more and more universities and institutions offering careers and courses in tech.