Software Engineer Average Salary in Canada 2023 – The Complete Guide

How much money does a person working as Software Engineer make in Canada?

Average Yearly Salary

118,000

CAD

( 9,800

CAD

monthly)

LOW

56,400
CAD

AVERAGE

118,000
CAD

HIGH

185,000
CAD

A person working as Software Engineer in Canada typically earns around 118,000 CAD per year. Salaries range from 56,400 CAD (lowest) to 185,000 CAD (highest).

This is the average yearly salary including housing, transport, and other benefits. Software Engineer salaries vary drastically based on experience, skills, gender, or location. Below you will find a detailed breakdown based on many different criteria.

Software Engineer Pay Scale and Salaries in Canada

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Salary Structure and Pay Scale Comparison

5% of people earn
110,000 CAD or more

10% of people earn
96,800 to 110,000 CAD

20% of people earn
68,000 CAD or less

65% of people earn
68,000 to 96,800 CAD

Minimum Salary
56,400 CAD
Median
111,000 CAD
Maximum
185,000 CAD

Median Salary, maximum and minimum salary, minimum wage, starting salary, and the salary range

• Salary Range, Minimum Wage, and Starting Salary

  Software Engineer salaries in Canada range from 56,400 CAD per year (starting salary) to 185,000 CAD per year (maximum salary). This is not the minimum wage as per the law, only the lowest reported number in the salary survey that had thousands of participants and professionals from all over the country.

• Median Salary

  The median salary is 111,000 CAD per year, which means that half (50%) of people working as Software Engineer(s) are earning less than 111,000 CAD while the other half are earning more than 111,000 CAD. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.

• Percentiles and Salary Scale

  Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of Software Engineer(s) are earning less than 90,000 CAD while 75% of them are earning more than 90,000 CAD. Also from the diagram, 75% of Software Engineer(s) are earning less than 127,000 CAD while 25% are earning more than 127,000 CAD.

• Pay Scale Structure

  We grouped the most common and recurring salaries into brackets to give more insight into what salary to expect. This method is more accurate than just the average salary and gives more insights on how salaries are actually distributed. Around 65% of all reported figures are in the range 68,000 CAD to 96,800 CAD. Approximatly 20% fall under the 68,000 CAD cap. Ten percent of wages are from 96,800 CAD to 110,000 CAD. Only 5% of people grossed 110,000 CAD or more.

Software Engineer Salary Comparison by Years of Experience

How does experience and age affect your pay?

Software Engineer average salary change by experience in Canada

0 – 2 Years

66,100 CAD

2 – 5 Years+42%

93,600 CAD

5 – 10 Years+31%

123,000 CAD

10 – 15 Years+23%

151,000 CAD

15 – 20 Years+6%

161,000 CAD

20+ Years+10%

176,000 CAD

Percentage increase and decrease are relative to the previous value

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The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher your wage. We broke down Software Engineer salaries by experience level and this is what we found.

Employees with less than two years of experience makes approximately 66,100 CAD per year.

While someone with an experience level between two and five years is expected to earn 93,600 CAD per year, 42% more than someone with less than two year’s experience.

Moving forward, an experience level between five and ten years lands a salary of 123,000 CAD per year, 31% more than someone with two to five years of experience.

“

On average, a person’s salary doubles their starting salary by the time they cross the 10 years* experience mark.

”

* Based on the average change in salary over time. Salary variations differ from person to person.

On average, a person’s salary doubles their starting salary by the time they cross the 10 years* experience mark.

Additionally, Software Engineer whose expertise span anywhere between ten and fifteen years get a salary equivalent to 151,000 CAD per year, 23% more than someone with five to ten years of experience.

If the experience level is between fifteen and twenty years, then the expected wage is 161,000 CAD per year, 6% more than someone with ten to fifteen years of experience.

Lastly, employees with more than twenty years of professional experience get a salary of 176,000 CAD per year, 10% more than people with fifteen to twenty years of experience.

Typical Salary Progress for Most Careers

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Software Engineer Salary Comparison By Education

How do education levels affect salaries?

Displayed below is the average salary difference between different Software Engineer(s) who have the same experience but different education levels.

Software Engineer average salary difference by education level in Canada

Certificate or Diploma

82,100 CAD

Bachelor’s Degree+59%

131,000 CAD

Master’s Degree+33%

174,000 CAD

Percentage increase and decrease are relative to the previous value

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We all know that higher education equals a bigger salary, but how much more money can a degree add to your income? We broke down Software Engineer salaries by education level in order to make a comparison.

When the education level is Certificate or Diploma, the average salary is 82,100 CAD per year.

While someone with a Bachelor’s Degree gets a salary of 131,000 CAD per year, 59% more than someone having a Certificate or Diploma degree.

People with Master’s Degree have an average salary of 174,000 CAD per year, 33% more than someone with a Bachelor’s Degree.

Is a Master’s degree or an MBA worth it? Should you pursue higher education?

A Master’s degree program or any post-graduate program in Canada costs anywhere from 49,800 Canadian Dollar(s) to 149,000 Canadian Dollar(s) and lasts approximately two years. That is quite an investment.

You can’t really expect any salary increases during the study period, assuming you already have a job. In most cases, a salary review is conducted once education is completed and the degree has been attained.

Many people pursue higher education as a tactic to switch into a higher paying job. The numbers seem to support the thoery. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.

If you can afford the costs of higher education, the return on investment is definitely worth it. You should be able to recover the costs in roughly a year or so.

Typical Salary Difference by Education for Most Careers

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Software Engineer Average Annual Salary Increment Percentage in Canada

How much are annual salary increments in Canada for Software Engineer(s)? How often do employees get salary raises?

Software Engineer

Software Engineer(s) in Canada are likely to observe a salary increase of approximately 13% every 15 months. The national average annual increment for all professions combined is 9% granted to employees every 15 months.

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The figures provided here are averages of numbers. Those figures should be taken as general guidelines. Salary increments will vary from person to person and depend on many factors, but your performance and contribution to the success of the organization remain the most important factors in determining how much and how often you will be granted a raise.

Canada / All Professions

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The term ‘Annual Salary Increase’ usually refers to the increase in 12 calendar month period, but because it is rarely that people get their salaries reviewed exactly on the one year mark, it is more meaningful to know the frequency and the rate at the time of the increase.

How to calculate the salary increment percentage?

The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency

“

The average salary increase in one year (12 months) in Canada is 7%.

”

Annual Increment Rate By Industry 2022

Banking

2%

Energy

4%

Information Technology

6%

Healthcare

8%

Travel

1%

Construction

3%

Education

5%

Listed above are the average annual increase rates for each industry in Canada for the year 2022. Companies within thriving industries tend to provide higher and more frequent raises. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. These figures tend to change frequently.

Worldwide Salary Raises: All Countries and All Jobs

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Salary Packages and Schemes

Not all compensation increases are reflected directly in the salary. Some companies offer upgraded packages to their staff instead of cash money. The figures displayed here account only for direct increments to the base salary.

Software Engineer Bonus and Incentive Rates in Canada

How much and how often are bonuses being awarded?

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“Software Engineer” is considered to be a moderate bonus-based job. The people who get the highest bonuses are usually somehow involved in the revenue generation cycle.

41% of surveyed staff reported that they haven’t received any bonuses or incentives in the previous year while 59% said that they received at least one form of monetary bonus.

Those who got bonuses reported rates ranging from 3% to 6% of their annual salary.

Received Bonus

59%

No Bonus

41%

Types of Bonuses Considered

Individual Performance-Based Bonuses

The most standard form of bonus where the employee is awarded based on their exceptional performance.

Company Performance Bonuses

Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The amount of the bonus will probably be different from person to person depending on their role within the organization.

Goal-Based Bonuses

Granted upon achieving an important goal or milestone.

Holiday / End of Year Bonuses

These types of bonuses are given without a reason and usually resemble an appreciation token.

Bonuses Are Not Commissions!

People tend to confuse bonuses with commissions. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned.

What makes a position worthy of good bonuses and a high salary?

The main two types of jobs

Revenue GeneratorsSupporting Cast

Employees that are directly involved in generating revenue or profit for the organization. Their field of expertise usually matches the type of business.

Employees that support and facilitate the work of revenue generators. Their expertise is usually different from that of the core business operations.

Example:
A graphics designer working for a graphics designing company.

Example:
A graphic designer in the marketing department of a hospital.

Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation.

“

Try to work for companies where your skills can generate revenue. We can’t all generate revenue and that’s perfectly fine.

”

Bonus Comparison by Seniority Level

Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. People in top positions can easily get double or triple bonus rates than employees down the pyramid.

Software Engineer Salary Trend and Forecast in Canada

How are Software Engineer salaries changing over time? Listed below is a chart that shows the average salary in recent years.

Average Salary 2019

107,000 CAD

Average Salary 2020+2%

109,000 CAD

Average Salary 2021+1%

111,000 CAD

Average Salary 2022+3%

114,000 CAD

Percentage increase and decrease are relative to the previous value

Software Engineer salaries in Canada are on the rise in the year 2023 based on recent submitted salaries and reports. As displayed in the chart, salaries in 2022 are 3% higher than those of 2021. The trend suggests a slow yet continuous increase in pay in 2024 and future years. These numbers may vary from industry to another.

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Software Engineer Average Hourly Wage in Canada

57 CAD

per hour

CAD

The average hourly wage (pay per hour) in Canada is 57 CAD. This means that the average Software Engineer in Canada earns approximately 57 CAD for every worked hour.

Hourly Wage = Annual Salary ÷ ( 52 x 5 x 8 )

About The Hourly Pay Rate

The hourly wage is the salary paid in one worked hour. Usually jobs are classified into two categories: salaried jobs and hourly jobs. Salaried jobs pay a fix amount regardless of the hours worked. Hourly jobs pay per worked hour. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). The hourly wage calculation may differ slightly depending on the worked hours per week and the annual vacation allowance. The figures mentioned above are good approximations and are considered to be the standard. One major difference between salaried employees and hourly paid employees is overtime eligibility. Salaried employees are usually exempt from overtime as opposed to hourly paid staff.

What is the minimum hourly rate of pay?

The minimum pay rate per hour for ‘Software Engineer’ in Canada is 27 CAD. This is the minimum as per the gathered data in the salary survey not the minimum hourly rate mandated by law.

Software Engineer VS Other Jobs

118,000 CAD

124,000 CAD

120,000 CAD

Average Salary
Software Engineer

Average Salary
Data Analysis

Average Salary
Information Technology

The average salary for Software Engineer is 5% less than that of Data Analysis. Also, Data Analysis salaries are 3% more than those of Information Technology.

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Salary comparison with similar jobs

Job TitleAverage SalaryBusiness Intelligence Analyst129,000 CAD

+10%

Business Systems Analyst109,000 CAD

-7%

Data Quality Analyst111,000 CAD

-6%

Director of Application Development173,000 CAD

+47%

Disaster Recovery Analyst107,000 CAD

-9%

Enterprise Infrastructure Architect151,000 CAD

+28%

ERP Analyst130,000 CAD

+11%

Functional Analyst126,000 CAD

+7%

Information Technology Training Analyst123,000 CAD

+5%

OPS Manager161,000 CAD

+37%

Reporting Analyst119,000 CAD

+1%

Salesforce Administrator115,000 CAD

-2%

SOA Analyst116,000 CAD

-1%

Software Analyst118,000 CAD

+0%

Software Architect112,000 CAD

-5%

Software Engineer118,000 CAD

+0%

Solutions Architect158,000 CAD

+34%

Systems Analyst108,000 CAD

-8%

Systems Architect115,000 CAD

-2%

Technical Analyst102,000 CAD

-13%

Technology Business Analyst117,000 CAD

-0%

Salary Comparison By City

CityAverage SalaryBrampton113,000 CADCalgary125,000 CADEdmonton116,000 CADGatineau105,000 CADHalifax107,000 CADHamilton122,000 CADKitchener109,000 CADMarkham107,000 CADMississauga121,000 CADMontreal122,000 CADOttawa118,000 CADQuebec119,000 CADRegina102,000 CADRichmond102,000 CADSaskatoon109,000 CADSurrey115,000 CADToronto132,000 CADVancouver122,000 CADVaughan109,000 CADWindsor111,000 CADWinnipeg116,000 CAD

Salary Comparison By State

StateAverage SalaryAlberta122,000 CADBritish Columbia132,000 CADManitoba120,000 CADNew Brunswick108,000 CADNewfoundland-Labrador110,000 CADNorthwest Territories114,000 CADNova Scotia112,000 CADNunavut128,000 CADOntario129,000 CADPrince Edward Island103,000 CADQuebec123,000 CADSaskatchewan112,000 CADYukon106,000 CAD

Government vs Private Sector Salary Comparison

Where can you get paid more, working for a private company or for the government? Public sector employees in Canada earn 4% more than their private sector counterparts on average across all sectors.

Private Sector

117,000 CAD

Public Sector+4%

122,000 CAD

Percentage increase and decrease are relative to the previous value

Salary Statistics and Calculation Guide

What is considered to be a good and competitive salary for Software Engineer in Canada?

A good and competitive compensation would range anywhere between 111,000 CAD and 127,000 CAD. This is a very rough estimate and your experience and education will play a very huge part into your final earnings.

Gross Salary (before tax) and Net Salary (after tax)

All salary and compensation figures displayed here are gross salary figures, that is the salary before tax deductions. Because taxes may differ across sectors and locations, it is difficult to accurately calculate the net salart after tax for every career.

Base / Basic Salary

The base salary for Software Engineer in Canada is ranges from 90,000 CAD to 127,000 CAD.
The base salary depends on many factors including experience and education.
It is not easy to provide a figure with very little information, so take this range in a grain of salt.

What is the difference between the median and the average salary?

Both are indicators. If your salary is higher than both of the average and the median then you are doing very well. If your salary is lower than both, then many people are earning more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated. We wrote a guide to explain all about the different scenarios. How to compare your salary