Why developers in the Netherlands should reconsider their salary expectations

Shocking Poll Results

A month ago, I ran a poll on LinkedIn with a simple but thought-provoking question: How much should a developer located in the Netherlands earn? The results were surprising—53% of the 624 respondents said developers should earn over €7000 per month. While this expectation is understandable given the global demand for tech talent, I believe it’s important to highlight that these expectations are often not aligned with the realities of the Dutch market.

As a senior recruitment consultant with over 170 clients, I regularly see the salary structures of companies across different industries and tech stacks. The truth is, while developers are in high demand, expecting over €7000 per month may not always be reasonable or market-conform for most developers in the Netherlands. Moreover, the current job market isn’t as robust as it was a few years ago, which adds another layer to the conversation.

1. The Reality of Developer Salaries in the Netherlands

In the Dutch market, a senior developer’s salary typically ranges between €5,000 and €6,500 per month, excluding holiday allowance. Including the mandatory 8% holiday allowance, this brings annual earnings to around €64,800 to €84,200. These are healthy figures, reflecting a robust market for developers, but they are a far cry from the €7000+ monthly figure expected by many.

To reach €7000 per month, a developer’s yearly salary would need to be around €90,700 or more. While a small percentage of specialized roles or high-demand industries may reach this level, it’s not the norm, even for senior developers.

2. The Current Market Isn’t as Hot as Developers Think

While developers might feel they’re still in a position of power due to the ongoing demand for tech talent, the reality is that the market has cooled down significantly in recent months. In fact, many freelancers are returning to permanent roles as contract opportunities become scarcer and more competitive.

Freelancers Returning to Permanent Jobs

With the freelance market tightening up, even seasoned developers who previously enjoyed high freelance rates are now seeking the stability of permanent roles. This shift alone is an indicator that the market is no longer as favorable as it once was for developers. When freelancers, who typically command higher rates, are returning to the full-time market, it creates more competition for permanent roles and puts downward pressure on salary expectations.

Hiring Slowdowns and Caution

Many companies are also slowing down their hiring processes, partly due to economic uncertainties. In recent months, I’ve seen several companies opting for caution over aggressive expansion, which means salary budgets are tighter.

Tech Industry Layoffs

The wave of tech layoffs across the globe has also reached the Netherlands, contributing to a more competitive job market. Developers who once believed they could dictate their salary demands are now facing increased competition from highly skilled peers, further emphasizing the need for realistic salary expectations.

3. Why Do Developers Think They Deserve €7000+ Per Month?

A critical question to ask is: Why do developers think they are worth at least €7000 per month in the Netherlands? Is it because they truly need that level of income, or are there other factors at play?

Global Influence and Salary Comparisons

One of the main reasons could be the global visibility of salaries. With platforms like LinkedIn, developers can easily compare their earnings with peers from other countries, particularly in the US, where salaries for senior developers are significantly higher. It’s common for developers in places like Silicon Valley to earn upwards of $150,000 (€140,000+) per year, creating a perception that similar roles should pay as much in the Netherlands. However, the economic landscape in the Netherlands is different, and companies generally aren’t able to offer US-style salaries.

High Demand Creating High Expectations

With tech talent in such high demand, many developers are acutely aware of their value and how scarce their skills are. This has led to inflated salary expectations, as developers may assume that companies will pay any price to secure their talent. However, companies still need to balance budgets, and most organizations aren’t operating with unlimited resources, even if the demand for developers is high.

Perceived Self-Worth and Lifestyle

For some, the expectation of a €7000+ salary may also be linked to lifestyle aspirations. As professionals in a highly-skilled field, developers might feel that they deserve to be compensated in line with the value they bring. But it’s worth questioning whether this salary expectation is based on actual financial needs or on a perceived sense of worth. In reality, most developers in the Netherlands can live easily on €5,000 to €6,500 per month, especially when factoring in the lower cost of living compared to tech hubs like San Francisco or London.

4. Adjusting Expectations: What Developers Need to Consider

While developers may feel they deserve top-tier compensation, there are several reasons to adjust salary expectations to be more market-conform:

Specialization Isn’t Always a Game-Changer

Though developers with niche expertise in areas like AI, blockchain, or cybersecurity may command higher salaries, most developers operate in more generalized fields. It’s essential to be realistic about whether your skills and experience truly place you in a high-demand, specialized category.

Experience and Leadership Matter

It’s not just about being a senior developer. Developers earning the highest salaries often have a combination of leadership responsibilities, management experience, and the ability to drive business impact. If you’re primarily a contributor without these additional layers of responsibility, it’s unlikely that a company will justify paying you €7,000 or more per month.

Employer Flexibility

In today’s market, many employers offer flexibility around work-life balance, remote work, and personal growth. These benefits, combined with competitive salaries, make for attractive packages. Focusing too much on salary could mean missing out on opportunities that offer long-term career development.

Conclusion: Balance is Key

The poll results were eye-opening, but they also revealed that many developers may need to reconsider their salary expectations. While €7000+ per month is achievable in specific cases, the majority of developers in the Netherlands will find themselves in the €64,800 to €84,200 annual range when holiday allowance is included.

Instead of fixating on a number, developers should consider the full picture: benefits, growth opportunities, work-life balance, and long-term career development. By keeping expectations grounded, both candidates and companies can find the right fit in today’s competitive job market.

I hope you enjoyed reading my blog and please be aware this is my opinion on the dutch market. As said, in specific cases and areas exceptions are made, but in general and overal I think this is a good reflection on the Dutch market for developers in 2024.