Hi-tech salaries: how much do Israelis earn compared with the rest of the world?


It is no secret that the strong demand for developers and engineers in technology companies in Israel is faced with a limited supply. Nor is it a secret that this shortage is causing a surge in conditions and salaries in many high-tech professions. What happens, however, when conditions in Israel are compared with conditions overseas? A new study sheds a little light on the data, and proves that developers anywhere else in the world have reason to envy the situation of their Startup Nation colleagues.

Demand is driving up salaries

The study performed by job placement company CPS JOBS included an analysis of the salaries of more than 200,000 employees in Israel, and an examination of demand among more than 3,000 hi-tech companies that hired employees. The companies checked included both startups and multinational companies active in Israel. The data obtained were compared with the average salaries for various fields appearing on the Glassdoor job placement website.

Comparing salaries (monthly wages) Source: CPS Jobs
Comparing salaries (monthly wages) Source: CPS Jobs

The figures in the chart comparing the US, German, UK, Irish and Israeli markets indicate that in every high-tech sector, Israeli high-tech salaries are higher than in any other country except for the United States. In some fields, it was revealed that Israeli developers earned over 50% more than their colleagues in Ireland and England. In one specialty – web development – the average salary in Israel was even higher than in the US, making it the highest in the world.

The data for the high-tech sector stand out even more, when Israeli salaries for all industries and sectors are compared with the average pay in the other countries. Here the United States leads, followed by Ireland, with Israel at the bottom of the five countries.

According to CPS JOBS CEO Ofra Afgin-Hadad, heavy demand is meeting a very limited supply, and that is what is creating the high salaries. Afgin-Hadad added that although the high-tech industry is responsible for almost 50% of Israeli exports, it employs only 8% of the Israeli labor force. Afgin-Hadad says that another trend is international companies, mainly those based in Europe, trying to attract Israeli talent using platforms like LinkedIn. She went on to say that the Israeli candidates say that the companies are surprised by the candidates’ high salary demands.

The study also found that demand rose in all technology fields in comparison with the second quarter of 2015, headed by increases in demand of 14% for graduates in the technological professions and 10% for personnel in mobile and web development, software development, information security, and quality assurance (QA). As a result, salaries surged 11.5% for graduates in the technological professions and 16.8% for QA personnel.


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