The Cost of Hiring Senior Software Developers in the US in 2021

Senior Software development can be a costly endeavor in the US. The cost for a company to hire a senior software developer is pretty high. Apart from the salaries, a company has to pay bonuses and others perk to the developers. 

In this blog post, you will learn about the true costs of hiring a senior software developer in the US and how contacting a nearshore development company can help in reducing software development costs without compromising quality. 

Cost of Hiring Senior Software Developers in the US

Companies have to pay a lot more to software developers in the US compared to companies in other countries. Based on payscale (, the average gross salary of Senior software developers is about $93,200 in the country depending on the experience. 

However, a US firm is also required to pay additional benefits to full time software programmers. The additional company-paid benefits to employees according to the Bureau of Labor Statistics comprise of the following:

  • Annual Bonuses: 3.5%
  • Overtime:  2.6%
  • Retirement contributions: 4.3%
  • Health care insurance: 7.6%
  • Medicare, social security and unemployment insurance: 8.5%

So, the total cost of employing full time software developers can be depicted in the following table. 

Cost of Full Time Senior Software Developer in the US% of Annual SalaryTotal Cost
Annual Gross Salary$93,200.00
Annual Bonuses3.5%$3,262
Retirement contributions4.3%$4,007
Health care insurance7.6%$7,083
Medicare and social security 8.5%$7,922
Total Cost including fringe benefits$117,898

In addition, a company has to pay general and administrative (G&A) overheads for employing a full time employee. The overhead costs range can be as much as 1.4 times the gross salary in the US, according to the US Small Business Association

Benefits of Nearshoring for US Software Development Firms

Nearshoring can help software development firms in the US to reduce operational costs without compromising on quality. It involves outsourcing the IT processes to companies in a nearby country with low labor costs. 

As opposed to offshoring, nearshoring doesn’t involve shifting work to distant countries. As a result, firms don’t have to face communication issues due to large time differences and language barriers. 

Contact a Nearshore Software Development Firm Today

US firms can contact Vates for nearshore software development services. We offer dedicated IT teams selecting the best developers that will ensure that projects get completed in the shortest time possible and at a much lower price. Vates selects the top 10% best developers to ensure that your projects have quality, in the shortest time.

Our clientele include Fortune 500 companies such as Intel, IBM, Oracle, Motorola, and others. You can rest assured in the same level of quality IT staff augmentation through our nearshoring services that will help to minimize the cost of software development projects. 

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