Is 20 LPA a Competitive Salary for a Software Engineer with 8 Years of Experience?
The question of whether a salary of 20 LPA (Lakhs Per Annum) is competitive for a software engineer with 8 years of experience depends on several factors. In this article, we will explore the industry standards, company type, location, skill set, and other aspects that contribute to the salary in the software engineering field. We will also discuss the generative rule for salary packages and how it may apply to your situation.
Industry Standards
In India, the average salary for a software engineer with 8 years of experience typically ranges from 10 LPA to 25 LPA. This range can vary based on the company's location and the specific skills required. A salary of 20 LPA is generally considered above average in the industry. However, the actual salary can be influenced by other factors such as the company type, location, and the incumbent's skill set.
Company Type
The type of company you work for can significantly impact your salary. Major tech companies or Multinational Corporations (MNCs) often offer higher compensation packages, which can often exceed 20 LPA. Startups and mid-sized companies, on the other hand, may offer lower salaries. It is important to understand the market dynamics of the type of company you are working for to gauge the competitiveness of your salary.
Location
Salary can also vary based on the location. Tech hubs such as Bangalore, Hyderabad, and Pune generally offer higher salaries than smaller cities. If you are located in these tech hubs, a 20 LPA salary might be considered below the average, while in smaller cities, it might be more competitive.
Skill Set
Your skill set plays a crucial role in determining your salary. Specialized skills in high-demand areas such as cloud computing, AI/ML, and cybersecurity can command higher salaries. Individuals with these specialized skills are often in a better position to negotiate higher compensation packages, even if they are at the lower end of the salary range.
Benefits and Perks
While the base salary is important, the entire compensation package is what truly matters. This includes bonuses, stock options, health benefits, and work-life balance. A comprehensive package can add significant value beyond the base salary, making a 20 LPA salary more attractive in certain scenarios.
Generative Rule for Salary Packages
A common rule of thumb in the industry is that the package should be between 1.5 to 3.5 times the experience. Based on this rule, a software engineer with 8 years of experience would likely expect a salary between 12 LPA and 28 LPA. Therefore, a 20 LPA salary is at the lower end of the market standards. However, this rule may not apply to individuals with specialized skills, particularly in niche tech stacks, or for startups where the compensation package can be structured differently.
While 23 LPA is sufficient for a comfortable and happy life in India, it may not be considered a decent amount for an 8-year experienced software engineer when compared to industry standards and fellow colleagues. If you are in a service-based company, you are likely to be paid close to 20 LPA, but switching to a product-based company could easily result in a salary between 35 to 45 LPA.