What Salaries Are Considered High: A Comprehensive Guide
For many people, the concept of a high salary is attractive. The idea of earning enough money to live comfortably, achieve financial goals, and enjoy a certain standard of living is appealing to most. However, what constitutes a high salary can vary depending on several factors. In this article, we will explore what salaries are considered high. We will examine different industries, geographic regions, and other variables that influence them.
Factors That Influence What Salaries Are Considered High:
When it comes to defining what salaries are considered high, there are several factors to consider. Below are some of the most significant factors:
One of the most significant factors that influence what has considered a high salary is an industry in which a person works. Different industries have different salary structures. What is considered a high salary in one industry may not be the same in another. For example, the salary ranges in finance and technology are typically higher than those in education or the nonprofit sector.
For example, in Germany, the average salary in the legal industry is around 75,000€. Which is twice the average salary in the education industry (around 33,000€).
Where a person lives can significantly impact what is considered a high salary. The cost of living varies significantly from region to region, and so do salaries. For example, a salary that is considered high in a rural area may be considered low in a major city like London or Amsterdam. In areas with high costs of living, salaries are higher to compensate for the increased expenses.
For example, the average salary for a data scientist in Denmark is around 80,000€ per year. Whereas in Poland or Spain, is around 40,000-45,000€ per year. It is key to say that in Copenhagen the cost of living index is 85.51 (cost of living + rent is 62.56). While in Spain it is 55.57 (including rent is 40.97) and in Poland 42.14 (including rent it is 31.84).
In this case, we can see that, in relation to their country, Polish salaries are the higher ones. Even if it is clear that in absolute numbers they are way lower than Danish salaries.
Years of Experience:
Another important factor that can influence what has considered a high salary is a person’s years of experience. Typically, the more experience a person has in their field, the higher their earning potential.
For example, a senior software engineer with ten years of experience may earn more than a software engineer with just two years of experience. The difference could be approximately 10% of the salary.
According to TalentUp’s database, a mid-software engineer in Munich with 2 years of experience should be paid 60,400 euros per year, and with 10 years of experience, they should be paid 65,200 euros per year. In this case, there is a difference of 8%.
Seniority is a different variable than years of experience. it is related to the kind of tasks and responsibilities your job requires. The more people you are in charge of (seniors can be in charge of juniors), the more you should be paid.
Continuing with software engineers in Munich, a junior one should be paid 44,300 euros a year and a senior one 75,400€ on average. The difference is 70%.
In Munich, a junior software engineer earning 60,000 euros per year would be highly paid. Meanwhile, a senior software engineer earning 65,000 euros per year would be paid below the average.
What can you do to check if your salary is high?
The answer to this question is simple: salary benchmarking. It is key to compare what salaries are being offered in your location within your industry.
TalentUp’s salary platform allows you to introduce your location, your position, your industry, your company’s size, and your company’s funding. it returns what salaries are below the average (25th percentile), on average (50th percentile), and above average (75th percentile). It also shows the most competitive salaries and the best on the market. It displays salaries by seniority and by different years of experience. Check it out to discover if you do have a high salary.
In conclusion, what salaries are considered high can vary depending on several factors, including industry, education, geographic location, and years of experience. While some industries and regions tend to offer higher salaries than others, it’s important to remember that salary isn’t the only measure of career success. Job satisfaction, work-life balance, and personal fulfillment should also be considered when evaluating career choices. Ultimately, each person should determine their definition of a high salary based on their goals and values.
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