Decoding SDE salaries in India - SDE 1 vs SDE 2 vs SDE 3

Introduction

Software Development Engineers (SDEs) form the backbone of the tech industry, driving innovation and building the digital products we rely on every day.

The demand for SDEs in India has surged in recent years, thanks to the expansion of global tech giants and the proliferation of Indian startups.

This demand, coupled with the complexity of roles and responsibilities, has led to significant variation in SDE salaries across levels and companies.

In this blog, we will decode the intricacies of SDE salaries in India, comparing the compensation packages for SDE 1, SDE 2, and SDE 3 roles.

Additionally, we will provide an in-depth analysis of salaries offered by MAANG (Meta, Amazon, Apple, Netflix, and Google) companies, which are often considered benchmarks in the tech industry.

Understanding SDE levels - SDE 1 vs SDE 2 vs SDE 3

The SDE role is not a one-size-fits-all position; it is divided into levels based on experience, skills, and responsibilities. These levels reflect the career progression of a software engineer within an organization.

SDE 1 - The entry-level Engineer

SDE 1 is the starting point for most software engineers, typically offered to fresh graduates or professionals with less than two years of experience. The primary focus of an SDE 1 is learning and delivering under guidance.

They work on coding, debugging, and understanding the company's tech stack, processes, and culture.

Salaries for SDE 1 roles vary significantly depending on the company, location, and technical expertise of the candidate.

In India, entry-level salaries for SDE 1 roles can range from ₹6–12 LPA in mid-sized companies and startups.

At large corporations or product-based companies, such as Microsoft or Amazon, SDE 1 salaries can go up to ₹15–18 LPA, including bonuses and stock options.

SDE 2 - The mid-level Engineer

An SDE 2 role is for professionals with two to five years of experience. Engineers at this level are expected to have a deeper understanding of software development processes, strong problem-solving skills, and the ability to work independently on complex projects.

SDE 2 engineers often mentor junior engineers and take ownership of larger modules.

In India, SDE 2 salaries are notably higher than SDE 1, with compensation packages typically ranging between ₹15–25 LPA.

Product-based companies and top-tier startups can offer salaries as high as ₹30–35 LPA for this level, often complemented by generous stock options and performance bonuses.

SDE 3 - The Senior Engineer

SDE 3 roles are for highly experienced engineers with more than five years of experience. These engineers are experts in their domain and are responsible for designing and architecting complex systems.

SDE 3 engineers often lead teams, make critical technical decisions, and contribute to the strategic goals of the organization.

In India, SDE 3 salaries start at ₹30 LPA and can go up to ₹50–70 LPA in leading tech companies and unicorn startups.

These roles typically include substantial bonuses, equity options, and other perks, reflecting the high level of responsibility and expertise required.

The MAANG Factor: SDE Salaries at top tech companies

When it comes to tech salaries, MAANG companies are in a league of their own. These companies set industry benchmarks, offering lucrative compensation packages that include a mix of base salary, bonuses, and equity.

Let's explore the salaries for SDE 1, SDE 2, and SDE 3 roles in MAANG companies in India.

SDE 1 at MAANG Companies

MAANG companies are known for their rigorous hiring processes and competitive compensation even for entry-level roles. The average base salary for an SDE 1 in MAANG companies in India ranges between ₹12–18 LPA.

In addition to this, performance bonuses and annual stock grants can add another ₹4–6 LPA, bringing the total compensation to ₹16–24 LPA.

Fresh graduates from premier institutes like IITs and NITs often land these roles due to their strong technical foundation.

However, candidates from other backgrounds with exceptional problem-solving skills and relevant experience can also secure these positions.

SDE 2 at MAANG Companies

At the SDE 2 level, MAANG companies significantly increase compensation to reflect the advanced skills and experience required.

The base salary for SDE 2 roles in India typically falls in the range of ₹25–35 LPA. With bonuses and stock grants, total compensation can reach ₹40–50 LPA.

SDE 2 engineers at MAANG companies are entrusted with critical projects and are expected to contribute meaningfully to the company’s technology and product strategy. The performance expectations are higher, but so are the rewards.

SDE 3 at MAANG Companies

SDE 3 roles at MAANG companies are some of the most coveted positions in the tech industry. In India, the base salary for an SDE 3 ranges from ₹40–60 LPA.

When combined with bonuses and stock options, the total compensation often exceeds ₹70–90 LPA.

These senior engineers are responsible for leading teams, designing scalable systems, and making architectural decisions that impact millions of users.

The high compensation reflects not only their technical expertise but also the strategic importance of their role within the company.

Startups vs Corporations: From a salary view

The Indian tech ecosystem offers diverse opportunities for SDEs, from nimble startups to established corporations. Startups often provide competitive salaries for SDE roles, especially at higher levels, to attract top talent.

However, the variability in compensation is greater due to factors like funding, revenue, and growth stage.

In contrast, corporations provide more stability in compensation and additional perks such as health benefits, paid time off, and retirement plans.

While startups may offer higher equity, corporations provide better predictability and security.

Factors influencing SDE salaries in India

Several factors influence SDE salaries, including location, skill set, industry demand, and the reputation of the company. Cities like Bangalore, Hyderabad, and Pune offer higher salaries due to the concentration of tech companies.

Specialized skills such as machine learning, cloud computing, and DevOps also command a premium.

Additionally, candidates with experience in product-based companies tend to receive higher offers due to the rigorous technical standards and problem-solving expertise required in these environments.

SDE salaries in Startups

Startups in India offer diverse salary ranges for SDEs, often influenced by the company’s size, funding stage, and priorities.

Early-stage startups, particularly those bootstrapped or in their seed stage, tend to offer modest base salaries but often provide generous equity options to attract talent.

For an SDE 1 at a startup, the salary typically ranges between ₹5–10 LPA, depending on the technical demands of the role.

Mid- and late-stage startups with solid funding offer more competitive compensation.

SDE 2 salaries at these companies often range between ₹15–30 LPA, with additional bonuses or equity that can significantly enhance the total package.

By the time an engineer reaches the SDE 3 level in such startups, their compensation can rival that of large corporations, with total annual packages reaching ₹40–60 LPA.

Startups also provide a dynamic work environment where engineers may experience rapid growth, but the variability in compensation and the risk associated with equity can be key considerations.

SDE salaries in mid-size companies

Mid-sized firms, particularly those in IT services and product development, have carved a niche in the Indian market.

These companies often bridge the gap between the structured hierarchy of large corporations and the flexibility of startups.

SDE salaries in mid-sized companies are typically stable and competitive. For an entry-level SDE 1, salaries usually start at ₹6–12 LPA.

As engineers progress to the SDE 2 level, they can expect packages in the range of ₹12–20 LPA, with performance incentives contributing to overall earnings.

For senior engineers at the SDE 3 level, salaries generally range from ₹20–35 LPA, depending on the complexity of the projects and the company’s budget.

While mid-sized companies may not match the stock options offered by startups or the brand value of MAANG companies, they often provide stability, work-life balance, and opportunities to work on impactful projects.

SDE salaries in Indian tech giants

Indian tech companies such as Infosys, TCS, Wipro, and HCL are some of the largest employers of SDEs in the country.

These firms typically follow structured compensation models, with incremental raises based on experience and performance.

SDE 1 salaries at these companies tend to range between ₹3–8 LPA, slightly lower than product-based startups or global giants.

However, these firms provide excellent learning opportunities, making them a preferred choice for fresh graduates.

SDE 2 roles see a significant jump, with salaries ranging between ₹8–15 LPA. For SDE 3 roles, compensation can reach ₹15–25 LPA, with additional bonuses tied to project deliverables and leadership responsibilities.

While these companies might not offer the highest salaries, they provide excellent long-term career growth opportunities through training, certifications, and global assignments.

SDE salaries in the Indian SaaS and Fintech Sectors

The SaaS (Software as a Service) and fintech sectors in India have emerged as significant employers of SDEs, offering competitive salaries to attract top talent. Companies like Freshworks, Zoho, Razorpay, and Paytm lead the way in this space.

In SaaS companies, SDE 1 roles typically offer salaries in the range of ₹8–15 LPA. SDE 2 engineers earn between ₹15–30 LPA, depending on the scope of their responsibilities.

For SDE 3 engineers, the compensation can reach ₹35–50 LPA, particularly in firms focused on global markets.

Fintech companies often offer slightly higher compensation than SaaS firms, reflecting the demand for skilled engineers to build secure, scalable financial products.

SDE 1 roles start at ₹10–18 LPA, while SDE 2 and SDE 3 salaries range between ₹20–60 LPA, including performance bonuses and equity.

Geographical Influence on SDE salaries

Location plays a crucial role in determining SDE salaries in India. Bangalore, known as the Silicon Valley of India, offers the highest salaries due to the concentration of tech companies and startups.

In Bangalore, SDE 1 salaries start at ₹8 LPA and can go up to ₹15 LPA in product-based firms. SDE 2 and SDE 3 salaries in the city range between ₹20–50 LPA.

Hyderabad, Pune, and Chennai are other major tech hubs offering competitive compensation, albeit slightly lower than Bangalore.

Tier-2 cities and emerging tech hubs, such as Jaipur and Ahmedabad, also provide growing opportunities, but salaries in these regions tend to be 20–30% lower.

Skill sets and how it impacts your salary

SDE salaries are heavily influenced by the skill sets engineers bring to the table. Engineers proficient in in-demand technologies like machine learning, artificial intelligence, cloud computing, and blockchain earn significantly higher salaries.

For instance, an SDE 1 with expertise in machine learning can earn ₹15–20 LPA, compared to ₹6–10 LPA for roles requiring basic programming skills.

Specialized roles, such as DevOps engineers or cloud architects, also command a premium, with salaries often exceeding ₹30 LPA for mid-level roles.

The Equity and Bonus Factor

Apart from base salaries, equity and bonuses significantly enhance the total compensation for SDEs. Startups, particularly in the fintech and SaaS domains, often provide substantial equity to attract and retain talent.

In contrast, corporations and MAANG companies offer performance-based bonuses and restricted stock units (RSUs), which can account for 30–50% of the total compensation.

Takeaway

The salary trajectory of an SDE in India is influenced by a combination of experience, skill set, and the type of organization.

While SDE 1 roles provide a strong starting point, progression to SDE 2 and SDE 3 levels unlocks substantial financial rewards.

MAANG companies set the gold standard in compensation, but numerous startups and mid-sized companies offer competitive packages to attract and retain top talent.

As the demand for skilled software engineers continues to grow, understanding these salary benchmarks can help professionals make informed career decisions and negotiate better offers.

Whether you're a fresh graduate or an experienced engineer, a clear understanding of the industry landscape will be your key to unlocking a rewarding career in software development.