Why are average Software Engineer Salaries or TCs so low in Canada?


Does anyone know why average TCs for Software Engineers in Canada is so damn low, despite lowish SWE output and brain drain? My hypothesis is because Junior Market is Saturated because the Senior market is undersaturated (A bad junior: senior ratio would render senior productivity down dramatically and SDE2+ is the productivity of the company's engineering, we all know that). In Canada, Canada solves this by immigrating the SWEs they need. I interned at RBC, anyone whos interned in a Canada Corp would agree seniority is largely/mostly immigrants. This makes the senior pool largely immigrants and makes Supply=Demand. Which makes Senior Devs rather underpaid, and sets the curve for the whole industry. Look at China, they have lots of engineers, but they're starting to have the senior engineers they need for a lot of junior engineers. That allows China and its corporations to just do more, hence how their major cities are just more digitized.


To be fair, salaries in Canada have increased dramatically since covid. Canadian companies that refuse to increase their rate will struggle to find engineers.

200K is now 75th percentile. It was around the 90th percentile last year.

I'm not sure your hypothesis on jr/sr would be specific to Canada. It's just historically poor paying due to lack of competition. That changed overnight thanks to covid.

There is no competition basically.

Google HR did a presentation internally.

They said TC didn't even depend on the cost of living. It is just a straight-up local competition.

This makes sense though. Every company aims to pay you as low as possible regardless of living costs.

The only thing that keeps Google TC high because everyone could have just moved to Facebook.

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