Understanding Tech Industry Salaries: Breakdown of a Software Engineer's 2.5 Year Earnings

Unlock the secrets of FAANG companies' high salaries and discover how much software engineers can earn with real-life examples, including Guddu Bhaiyaa's 2.5-year career journey at Cultfit and Google.

  • Here are 22 clean bullet points summarizing the video:
  • FAANG companies are known for their high salaries.
  • The tech industry experienced a boom after Covid-19, leading to strong demand and good salaries.
  • There are three components of salary: base salary, bonuses, and equity/ESOPs.
  • Base salary is the amount received in the bank account each month.
  • Taxes are imposed on it, so the take-home pay is lower than the gross salary.
  • Joining bonus, work-from-home bonus, and relocation bonus are types of bonuses.
  • Joining bonus: given when joining a company.
  • Work-from-home bonus: given during the pandemic to facilitate remote work.
  • Relocation bonus: given for moving to a new location for work.
  • Year-end bonus: given at the end of each year.
  • Equity is allocated to employees in publicly traded companies, while ESOPs are used in startups.
  • Both equity and ESOPs are vested over time (typically 3-4 years).
  • Public company equity can be sold once vested, but ESOPs cannot.
  • ESOPs can be converted into cash under certain circumstances.
  • Example: Guddu Bhaiyaa's Salary
  • Guddu Bhaiyaa graduated in 2021 and joined Cultfit through campus placement (CTC: 28 LPA).
  • Base salary: ₹19.5 lakhs.
  • Work-from-home bonus: ₹50,000 (to buy a table chair).
  • ESOPs worth ₹7 lakhs, vested over 4 years.
  • Guddu Bhaiyaa's Salary Breakdown
  • One-year package (excluding 3-year equity): ₹22.75 LPA.
  • Guddu Bhaiyaa left Cultfit after 11 months to join Google (dream company).
  • Base salary: ₹22.44 LPA.
  • Joining bonus: ₹2 lakhs.
  • Relocation bonus: ₹1.7 lakhs.
  • Year-end bonus: ₹3.36 lakhs.
  • Equity: ₹31.8 lakhs, vested over 4 years.
  • One-year package (excluding 3-year equity): ₹40 LPA.
  • Total salary in 16 months: ₹47.48 lakhs.
  • Total Income: ₹18.37 lakhs from Cultfit and ₹47.48 lakhs from Google = ₹65.8 lakhs.

Source: Fraz via YouTube

❓ What do you think? What is the most significant factor that determines a software engineer's total compensation package over the course of their career? Feel free to share your thoughts in the comments!