2025 Data Engineering Compensation Overview

While individual contributor roles are seeing renewed demand at the entry level and modest normalization mid-career, managerial positions are experiencing measured growth tied to organizational efficiency and the scaling of AI infrastructure. Together, these patterns reveal a maturing field where strategic data leadership and hands-on engineering expertise are both being refined to meet evolving business and technology priorities.

Salary trends for Data Engineers in 2025 show a market recalibrating after the volatility of the AI hiring boom. Demand is stabilizing, but shifts in skill expectations and title structures are reshaping how talent is valued across experience levels.

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2025 Individual Contributor Snapshot

• Early-Career (IC-1): Rebounded +10%, reversing last year’s softness and signaling renewed hiring momentum for entry-level engineers as AI and data infrastructure initiatives expand.
• Mid-Level (IC-2): Posted a steady +3% gain, showing salary normalization and consistent demand after 2023’s rapid pay spikes.
• Senior (IC-3): Declined –6%, suggesting title compression and the reclassification of advanced IC roles into manager-track or hybrid MLOps positions.

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2025 Managers Snapshot

• First-Line Managers (MG-1): Edged up +4%, reflecting incremental pay adjustments for early-stage leaders despite limited sample sizes.
• Mid-Level Managers (MG-2): Held nearly flat (+1%), underscoring a continued focus on lean organizational design and the consolidation of mid-management roles.
• Senior Managers (MG-3): Climbed +3%, driven by increased compensation for leaders overseeing AI infrastructure, cloud modernization, and enterprise-scale data strategy.

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