Software Developer Hourly Rates: Comparison 2024

Software Developer and Development Rates by Region

Let’s start with a geo-comparison! Geographical influence can vary. This is due to factors like the cost of living and local market conditions. Educational opportunities and the region's economy also play a role. 

That’s why we will compare rates by focusing on three key regions: the US, the EU, and insights directly from Serbian developers and the Balkan market.

Rates for Software Developers in Europe

In Europe, hourly rates can range from $35 to $90 depending on the country. 

Western European developers (Germany, UK, France) charge higher rates. In contrast, Eastern European developers (Poland, Czechia, Romania) typically charge between $25 and $50 per hour.

Rates for Software Developers in the United States

The US is one of the most expensive regions for hiring developers, with hourly wage ranging from $75 to $150. 

Developers in tech hubs like San Francisco and New York can command even higher rates, often exceeding $200 per hour for specialized roles.

Rates for Software Developers in Balkans (Serbia)

Serbia has become a popular destination for outsourcing due to its skilled workforce and lower costs. 

The average hourly rate for developers in Serbia is $30 to $70. This makes Serbia an attractive option for companies looking to balance quality and cost.

Serbia is one of the more affordable European countries, with the added benefit of a convenient time zone for collaboration.

Factors Affecting Rates for Software Developers

Besides location, several factors can impact a software developer's hourly rate. Understand these factors! This will help you make informed decisions and manage your project budget more effectively.

Experience: More experienced developers naturally command higher rates. A junior developer with 1–3 years of experience may charge between $20 and $50 per hour. At the same time, an intermediate developer with 4–6 years of experience may charge between $35 and $70. A senior software engineer with over 7 years of experience can charge between $50 and $200 per hour. This, however, largely depends on their expertise. 

Project Scope and Niche: The type of your project will significantly impact the rate. For simple projects like a marketing website, rates can range from $20 to $90 per hour. More complex software products for web or mobile app development typically range from $30 to $120 per hour. On the other hand, highly specialized projects like AI, machine learning can be costly. AI or blockchain hourly rates can range from $50 to $250. This is because they require advanced technical knowledge.

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Comparing Hourly Rates: In-house vs Freelance Platforms

You need to consider the hiring options available. If you're a startup or just beginning a project in the US, UK, or Europe, there are several choices for you. For fast yet reliable hiring, here’s a breakdown of the most popular options:

In-House Developers: Hiring full-time, in-house developers can be more expensive over time. This is due to salaries, benefits, and infrastructure costs. Take into consideration the costs of recruitment, onboarding, and equipment. In the US, for example, hiring an in-house developer can range from $80 to $150+ per hour. There are also additional hidden costs (recruitment, equipment, and benefits). These hidden costs add approximately 20-30% on top of the base salary.

Freelancers: Freelancers offer greater flexibility and potential cost savings (including project cost). This results in paying per task or project for the work you need. Rates can vary based on the platform. UpWork: Typically ranges from $20 to $100 per hour, depending on experience and location. TopTal Offers higher-end freelancers, with rates between $60 to $200 per hour. Fiverr: Generally more affordable, with development rates between $15 and $80 per hour. Though, quality may vary.

Here, you have to bear in mind that TopTal is expensive due to the vetting process. Yet, those are still freelance developers, while Fiverr is more suited for quick hires.

What is the Safe Hiring Solution ?

Of course, you do not have to limit yourself to freelancers and in-house people. Safe Hiring Solution blends quick availability with strong vetting processes. You can say it is the best of both worlds. In this safe model you hire top talent remotely, while avoiding the high overhead costs of in-house teams.

This aligns perfectly with the philosophy of the FatCat Coders, as it offers savings on multiple levels. You have the convenience of an intuitive and fast hring approach. Yet, you don’t have to worry about the risks associated with freelance platforms. These risks usually include security, reliability, expertise, and proven projects.

Safe Hiring Solution focuses on finding vetted developers who can deliver high-quality work efficiently. Let’s go through costs that are covered via safe hiring placements! Keep in mind that these also do include the hourly rates per developer, and flexible projects.

Hidden Cost of In- House Hiring: How to Avoid Them (With Safe Hiring)?

The hourly rate you're paying for a software developer includes several factors beyond just their wage:

• Benefits: Full-time employees usually receive additional benefits. These include health insurance, paid leave, and retirement contributions, all of which contribute to higher costs.

• Infrastructure Costs: This encompasses everything from office space, utilities, and the tools and technologies required to complete the work. For example, office space in cities like Belgrade or other tech hubs may have significant rental costs.  This is especially true if you're looking for high-quality office spaces to accommodate your team.

• Developer Tools: The software and systems developers can use different licenses for development tools, IDEs, or other technical infrastructure. This can add up to a considerable expense that is often overlooked in the initial budgeting.

• Legal, Payroll, and Administration: Managing payroll, handling contracts, and ensuring compliance with local labor laws. Especially in regions like Serbia or Europe, this can require significant administrative resources. This includes ensuring tax regulations are met and that contracts are in place. This can also include all the right legal protections provided for both employer and employee.

• Employee Onboarding and Offboarding: Bringing in a new hire comes with onboarding costs such as training, and HR setup. In this, we include also an introduction to tools, platforms, and workflows. Conversely, when an employee leaves, offboarding can require further time and resources to ensure a smooth transition. Don't forget about the knowledge transfer and security checks.

• High-Quality Equipment: Developers often require high-quality hardware. Just count all the laptops, monitors, and other peripherals, to perform at your best. Providing this equipment can be costly. We also have to consider the ongoing maintenance and updates needed to keep systems running efficiently.

• Learning and Development: In a competitive field like software development, continuous learning is essential. Investing in the training, upskilling, and certification of developers can add to the overall cost of hiring. These expenses are often covered by employers seeking to maintain a competitive edge.

Employee Benefits: On top of direct compensation, full-time developers often receive other perks like performance bonuses. Keep in mind team-building events, paid time off, and wellness programs, all of which add up.

What FatCat Coders Cover?

• Legal, payroll, and administration;

• The employee on- and offboarding;

• Office space in Belgrade;

• High-quality equipment;

• Learning and development,

• Employee benefits

• and more...

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Safe hiring solutions like FatCat Coders help cut down on hidden costs. By hiring skilled developers who work remotely, you can avoid many of the expenses of regular hiring. You won't have to worry about legal, administrative, or setup costs. You can focus on getting top developers with clear job expectations and less risk.

Why Serbian Developers Are the Perfect Fit for Your Hiring Needs

Serbia has become one of Europe’s top tech hubs, offering a strong talent pool of skilled developers. This comes at highly competitive hourly rates, typically ranging from $20 to $70.

With a focus on tech education, Serbian developers bring expertise. They are skilfull across various technologies, making them ideal for startups and companies looking to scale.

Their English proficiency, cultural compatibility, and overlapping time zones with Europe and the US ensure smooth communication and collaboration. Hiring Serbian developers allows you to scale your team quickly and affordably without compromising on quality or expertise. On long-term basis, this can help you meet your business goals effectively.

Why We Offer 160 Risk-Free Hours When You Hire Our Developers

When you hire FatCat Coders from Serbia through our safe hiring approach, we guarantee high-quality standards, as we are sure in what we do. That’s why we offer a 160-hour risk-free trial.

During this 160-hour period the developer becomes a regular part of your team, working on your projects or undergoing any additional vetting your company requires—completely risk-free. If needed, you also have the option to swap the developer for someone else at no extra cost.

We’re confident in our process, and our clients, including leading brands like Calendly and Enjoy Good Health, are proof of our success. Your company could be next!

What can I do in 160 hours?

With our 160-hour risk-free trial, you can:

✓ Test your new team member (our developer),

✓ See if they are a perfect fit for your project,

✓ If you feel a change is needed, we’ll replace them at no additional charge.

Start now: Book a free consultation!

FAQs: Software Developer Hourly Rates

What is the typical turnaround time for a software development project?
It depends on the project's complexity. Small projects can take anywhere from 1 to 3 months, larger projects may take 6 months or more.

How do I ensure the quality of work from software developers?
Look for developers with strong ratings, verified portfolios, and repeat clients. Clear communication and setting expectations upfront also help.

What technologies should I look for in a software developer?
It depends on your project (including project manager). For web development, look for experience in JavaScript, React, or Python. For AI, you'll need developers familiar with machine learning frameworks like TensorFlow.

Can I hire a software developer for ongoing maintenance?
Yes, many developers offer ongoing support and maintenance services. It’s common for businesses to hire developers on retainer. This is due to continued updates and troubleshooting.

How do I handle intellectual property rights for my project?
Ensure that your contract specifies ownership of intellectual property. In most cases, the client retains full rights to the code and software developed.

Why Developer Rates Change Over Time

Developer rates change for a few reasons. First, demand and supply matter. When companies need more developers, like during tech booms or when new tools are hot, rates go up. But, if there are too many developers and few jobs, rates drop.

New technologies also play a role. Developers with skills in the latest tech can earn more. For instance, mobile app development has led to higher pay for mobile experts. Lastly, the economy affects rates. In a strong economy, companies pay more. During tough times, they might spend less, lowering rates.

Understanding these factors helps businesses plan their budgets. This ensures they get the best value while managing costs effectively.