Software Developer Salaries in Mexico and the U.S. 2024

Software developers and engineers build the necessary infrastructure that maintains, improves, and progresses the technologies we depend on and those that drive further innovation. With these skills in high demand, software developer salaries remain among the most lucrative in the United States. Yet, emerging tech talent in other parts of the world presents companies with the opportunity to snatch up great talent while reducing costs and diversifying their teams.

So, how do software engineer salaries compare in the U.S. and Mexico, and what other considerations should companies look at when building their teams?

We provide an overview of developer salaries in Mexico and the U.S. and why Mexico has become a hot spot for hiring.

Salaries for Software Developers in Mexico in 2024

In our Tech Salaries Report 2024, CodersLink deep dives into the state of Mexico’s tech ecosystem and outlines the trends, patterns, and unique characteristics of the country’s IT industry.

Mexico has a history of tech development and investment. Companies like IBM and Hewlett-Packard have had a presence there for several decades. Tech giants like Google, Facebook, and Pinterest have also set up shop in Mexico, often building remote tech teams or establishing offices in the country.

Fun Fact: In the past ten years, the tech industry in Mexico has grown three times faster than the national average.

Based on our latest research—compiled from survey data, job postings from our 150 partners, and additional data from CodersLink’s 30,000+ engineering community—we’ve aggregated the latest salary numbers and relevant information regarding Mexico’s competitive tech ecosystem.

The data suggests that the monthly average salary of a remote software developer in Mexico is $2,037 USD, while hybrid roles average $2,047 USD, and on-site roles average $1,868 USD.

In the U.S., the average remote developer salary is approximately $139,702 per year.

Comparison of Software Developer Salaries in Mexico

Software Developer Salaries vs. Cost of Living in Mexican Cities

Salary expectations vary slightly by region in Mexico because—like in the U.S.—cost of living fluctuates depending on the state and the city. For example, Quintana Roo, Cancun has one of the lowest salary ranges compared with the cost of living. This gap is due to the area’s popularity with tourists, its high purchasing power, and the fact that it attracts a lot of digital nomads seeking life on the shore.

Cities like Queretaro have a great salary vs. cost of living ratio. The cost of living per person is averaged at about $650 per month with a salary of about $3,100. Mexico City, one of the nation’s most expensive areas, has an estimated cost of living at about $1,250 and a $3,250 salary expectation.

Comparison Table: Top Software Developer Roles

Below is a table comparing the anual salaries for the top software developer roles in Mexico and the U.S. based on recent data.

*Data for Mexico sourced from Tech Salaries Report 2024. Data for the U.S. sourced from Built In and Glassdoor reports.

Salaries for Software Developers in the U.S. 2024

The expected salary for software developers in the United States is considerably higher. Like in Mexico, however, these salaries might have some variation depending on the region and its respective cost of living.

According to Built In, the average salary for a software developer in the U.S. is $148,774, with total compensation reaching $163,006 when additional cash bonuses are included. Other sources like Glassdoor report an average base salary of $100,828, with total compensation averaging $130,346.

Our research supports that hiring remote workers in Mexico is a cost-effective approach to hiring elite talent. Mexico’s top cities for tech talent include Mexico City, Guadalajara, Monterrey, Merida, Tijuana, and Queretaro.

Software Developer Salaries vs. Cost of Living in the U.S.

Large U.S. cities will have a much higher cost of living, which means that companies or startups hiring top-level software engineers require a hefty budget to acquire experienced and skilled talent.

For instance, the average salary for software developers in San Francisco is approximately $171,000, while in New York it is $155,000, and in Seattle $157,000. These high costs of living in major tech hubs highlight the financial benefits of hiring from regions with lower living costs like Mexico.

Other Comparisons Between Mexican and U.S. Software Engineers

Latin America (LATAM) is a growing market for software developers. Mexico currently graduates about 130,000 software engineers per year.

According to data, about 3,874 software engineering degrees were awarded in the U.S. in 2020. Lower numbers have impacted what has come to be known as the tech talent shortage in the U.S. Statistics show that there are five jobs for every one software developer, suggesting a major talent gap unable to keep up with demand.

The good news is that Mexico has invested heavily in cultivating a rich tech ecosystem. Thus, Mexico has a rich culture of active developer communities, outsourcing relationships with the U.S. and global companies, and growing venture-backed investment and startups.

In addition, because of its proximity to the U.S., cultural similarities, and shared time zones, Mexico is a first-rate choice for tech talent.

Mexico’s Top Education and Training Institutions

In order to get ahead, companies seek innovative talent to join their ranks. For many, this is a top question when hiring remote developers in a different country. How skilled is the talent?

Mexico has top-ranked universities that have built a reputation for rigorous programs and training. Big tech companies in the region have often worked with institutions to guide curriculum and education toward real-world training.

Mexico has a large number of STEM graduates and this number has been increasing for the past few decades. Several educational powerhouses have built a global reputation in the engineering sphere. Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) even has partnerships with top U.S. institutions for joint masters in software engineering and other programs. Even technology parks such as the Monterrey Technology Park connected to the University, contribute to the region’s overall innovative spirit.

Top tech universities of Mexico include:

– Tecnológico de Monterrey
– Universidad Autónoma de Guadalajara
– Universidad de Guadalajara
– National Autonomous University of Mexico
– National Polytechnic Institute

In the United States, the top software engineering schools are:

– Carnegie Mellon University
– Massachusetts Institute of Technology
– University of California, Berkeley

Tap Into Elite Talent With Competitive Software Developer Salaries in Mexico

Thinking behind remote hiring has undergone a cataclysmic shift. Companies previously thought of outsourcing as a cost reduction approach. Today, however, companies go where the talent is. Hiring top talent means your company produces the best products. The wave of remote work brought on by the pandemic has promoted the ability of companies to work across borders and build robust teams in different locations.

Mexico is a tech talent hub and one of LATAM’s leading regions for hiring remote software engineers. CodersLink’s staffing and recruitment services connect companies with Mexico’s elite talent so they can establish remote teams or hire committed developers from afar.

The best part? CodersLink takes care of the administrative uncertainties—such as employment of record, access to qualified talent, and other talent sourcing responsibilities—that often cause hesitation when hiring outside the U.S.

Ready to beat the tech talent shortage and find elite software engineers?**

Connect with CodersLink to learn more.