There’s been a positive trend in the IT job markets recently. This is driven by the digital transformation across all sectors in efforts to further reduce tech unemployment rate. The US Bureau of Labor Statistics even says that there are 356,700 openings projected each year between 2023 and 2033. (1)
Two of the most popular specializations in the IT industry now are data science and software engineering. These professions are becoming more significant, especially in the new tech age, as they form the center of cloud computing, AI and Web 3.0 development.
But as more IT experts pursue one of the two, the main question remains: Who earns more between the two? This article will discuss the salary comparisons between the two in more detail.
Salary Comparison
Here’s a clear breakdown of how the salaries of these two careers differ:
| Data Science | Software Engineering | |
| Average Yearly Salary | USD$ 122,738 | USD$ 147,524 |
| Entry-Level Salaries | USD$ 75,000–90,000 | USD$ 65,000–80,000 |
| Mid-Level and Senior Salaries | USD$ 150,000–200,000 | USD$ 140,000– 180,000 |
| Freelance and Contracts | USD $80-150 | USD$ 70-130 |
Average Salaries Across Regions
Salaries for both data scientists and software engineers vary depending on the region. As of March 3, 2025, the US has one of the highest wage rates, with data scientists earning an average of USD$ 122,738 per year. However, this can also vary depending on the state. On the other hand, the average salary of software engineers in the US is about USD$ 110,000 a year. (2)
However, in regions such as Europe and Asia, the median salary rate for both software engineers and data scientists is slightly lower, ranging between USD $ 50,000 and USD$ 100,000, depending on the country. You can learn more about IT salary to find out how software engineering and data science compare.
Entry-Level Salaries
Just like the average salary rates, entry-level data scientists earn slightly more than software engineers. A fresh data scientist has a salary range of USD$ 75,000–90,000, while a junior software engineer typically earns around USD$ 65,000–80,000.
This wage gap usually exists because data scientists require additional training. Some data scientists have backgrounds in software engineering, statistics, and computer science, so recruiters are willing to pay more for these extra skills.
Mid and Top-Level Salaries
Salary increases as you gain more expertise and become more suitable in various job roles. Data scientist’s and software engineers’ IT salaries increase depending on experience level and expertise. According to a study, mid-level data scientists earn about 25-30% more than entry-level data scientists. (3)
Senior data scientists can earn between USD$ 150,000–200,000 or more annually in high-demand markets. On the other hand, senior software engineers or architects often earn USD$ 140,000–180,000, with salaries peaking in roles like Principal Engineer or CTO.
Freelance and Contract Opportunities
The freelance and contract opportunities have a more balanced rate for data scientists and software developers. The rate is usually set per hour or based on project milestones.
Experienced freelance data scientists can charge between USD$80 and $150 per hour, while freelance software engineers can charge USD$70 to USD$130 per hour. However, these rates are heavily influenced by reviews and ratings on freelance platforms and negotiation skills.
Factors Influencing Salary Rates
Several factors influence how much money you’ll make as a data scientist or software engineer. They include the following:
Skill Set and Specialization
When you have specialized skills, you can negotiate a higher salary. For example, machine learning, big data tools like Hadoop, and programming languages like Python or R often lead to higher salaries for data scientists. You can also specialize in AI engineering instead of becoming a data scientist.
As a software engineer, you can specialize in cloud computing and deployment, as well as emerging areas such as blockchain technology to command more pay. When you have specialized skills, as opposed to general skills, you join an exclusive group of highly sought-after talent.
Industry Demands
The IT industry is changing swiftly, and professionals should keep up with industry demands. Focus on sectors where the demand is very high. Being an IT professional doesn’t mean you’ll only be employed in the tech sector.
In fact, the top-paying industries for such software include web search portals, libraries, archives, other information services, gambling industries, and social networks. (4)
The finance and healthcare industries also demand skills in It. This is expected to positively impact the salary scale of experts in those sectors. Therefore, let the current industry demands shape your career path.
Education Level
While the IT industry has evolved to be more skill-based regarding employment and salaries, education level and certification can influence your salary. Many data scientists hold advanced degrees, such as master’s degrees in statistics, mathematics, or computer science, which can justify higher wages.
In contrast, software engineers often enter the field with a bachelor’s degree in computer science or a related field. However, certifications in tools like AWS, Kubernetes, or Docker can significantly enhance earning potential.
In Conclusion
The tech industry salary trend has been positive as the demand for these skills continues to soar. However, there will be a difference based on which specialization you choose. The discussion above about data scientists and software engineers shows how their salary rates can differ based on experience level and skills, among many things.
So, take a step today and choose a specialization that fits you well and benefit from competitive salaries.
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References
- Computer and Information Technology Occupations: https://www.bls.gov/ooh/computer-and-information-technology/#:~:text=Overall%20employment%20in,the%20occupations%20permanently.
- Data Scientist Salary: https://www.ziprecruiter.com/Salaries/Data-Scientist-Salary#:~:text=As%20of%20Feb,or%20%2410%2C228/month.
- ANALYSIS OF DATA SCIENCE JOB SALARIES FROM 2020 TO 2024: TRENDS AND INFLUENCING FACTORS: https://www.researchgate.net/publication/384731577_ANALYSIS_OF_DATA_SCIENCE_JOB_SALARIES_FROM_2020_TO_2024_TRENDS_AND_INFLUENCING_FACTORS#:~:text=technologies%20effectively.-,Impact,salaries.,-This
- Occupational Employment and Wage Statistics https://www.bls.gov/oes/current/oes151252.htm#:~:text=Top%20paying%20industries,%24%20174%2C480