OfferZen has released its latest salary analysis for software developers in South Africa.
The report presented multiple findings based on its salary data, including the fact that junior developers earn 14% more in Cape Town than Johannesburg on average.
“While Johannesburg’s graduates earn around R22,000 at their first jobs, Cape Town’s entry-level salaries are on average 14% higher,” said OfferZen.
“A reason for the discrepancy between Johannesburg and Cape Town is likely the fierce competition for UCT computer science graduates.”
When it came to more senior developers, however, salaries in Johannesburg took the lead after the “4-6 years of experience” mark.
“The average salary for developers in Johannesburg with six-plus years experience is R61,240, while Cape Town developers with the same experience earn an average of R54,750,” said OfferZen.
“We suspect that this sizeable difference is created by the greater number of large financial institutions in Johannesburg. These tend to pay senior developers more than smaller companies are able to afford.”
Average salaries – Cape Town vs Johannesburg
Average salaries – Outliers removed
OfferZen also ranked the average salaries of the cities after excluding “a handful of developers who earn salaries above R100,000”.
“By removing the outliers, it gives us a better picture of what a developer is likely to be earning,” it said.
“As you can see, the gap closes significantly, but senior developers in Johannesburg still earn 5.5% more than experienced developers in Cape Town.”
Another important factor OfferZen analysed was the cost of living in Cape Town and Johannesburg.
Once cost of living is taken into account, the higher salaries in Cape Town for developers with two or more years of experience are negated.
Cape Town’s higher cost of living – which includes rental and consumer prices – makes the salary gap even larger as it moves towards more senior developers.
Average salaries – Cost of living adjusted
OfferZen said the report should serve as a guideline only.