With Increased Demand for Software Engineers in Israel Come Higher Salaries
The average wage of workers in Israel’s software industry rose by 23% over the past five years, according to data gathered by Tel Aviv-based tech placement company see.V
Maayan Manela | 10:19 09.01.2020
The average wage of workers in Israel’s software industry rose by 23% over the past five years, compared to a 13% rise in the country’s general average wage, according to data gathered by Tel Aviv-based tech placement company see.V. In the last quarter of 2019, the average pay for software developers was NIS 29,175 (approximately $8,395) a month, a 3% year-over-year increase, the data showed. At the beginning of 2019, there were fears that the political instability, as well as the global trade wars, will slow the tech sector down but these gloomy prospects did not materialize, Danielle Yogev, the head of see.V.’s recruitment team, said in a recent interview with Calcalist. report by Tel Aviv-based research firm IVC Research Center and the Israel office of international law firm Zysman, Aharoni, Gayer & Co. (ZAG-S&W). In the first three quarters of the year, there was a slowdown, but wages continued to climb in Q4, Yogev said. Israel’s ongoing tech talent crunch is sending wages upwards while also forcing companies to be more flexible in their choice of employees, Yogev said. “Our data shows 23% of new recruits in 2019 were over 40, a 5% increase compared to 2018,” she said. In the past, employers were wary of hiring older workers, fearing they will have difficulty finding their place within the young culture characteristic of startups, she added. Now, they are more afraid the position will remain unmanned, Yogev said, so you get a more diverse workforce age-wise. In 2019, 31% of applicants were hired at salaries that exceeded their expectations, according to see.V’s data. Of those surveyed, 45% received wages lower than the sum they expected.