Software Engineer Salary Melbourne: What the Index Shows

Software Engineer Salary Melbourne: Reading Job Ads and Comparing Offers

When you search for a software engineer salary Melbourne, you'll see a wide range of figures in job ads. Some quote $90,000 for a junior role, others $150,000 or more for senior positions. But how do you know if an offer is fair? The Salary Index helps by putting any salary against a national benchmark: the full-time adult ordinary-time earnings of $108,352 per year (index 100). This guide explains what public data says about software engineer pay in Melbourne and how to use the index to compare offers.

What the Public Data Says

Jobs and Skills Australia (JSA) tracks Software Engineers (ANZSCO 261313) but does not publish median weekly earnings for this occupation. The Fair Work Ombudsman's pay guides include the Professional Employees Award (MA000065), which sets minimum rates for professional engineers, but these are minimums—often much lower than market rates for software engineers. For example, a Level 1 engineer under that award might have a minimum of about $75,000, but most experienced engineers earn well above that. The national minimum wage from 1 July 2026 is $26.44 per hour (index 48.2), but software engineers are rarely paid at that level.

Instead, the most useful benchmarks are the [states](/states] and industries indices. Victoria's state index is 98, meaning typical full-time adult ordinary-time earnings in Melbourne are $106,137 per year—slightly below the national line. The Professional, Scientific and Technical Services industry index is 114.7 ($124,300), which covers many software engineering roles. If you see a job ad for a software engineer in Melbourne at $120,000, that's an index of about 111, above the state average but below the industry average for professional services.

Using the Index to Compare Offers

Suppose you have two offers: one from a Melbourne tech startup at $110,000 and another from a large financial services firm at $130,000. The first has an index of 101.5 (just above national line), the second 120 (well above). Compare these to the Victoria state index (98) and the Professional services index (114.7). The startup offer is slightly above the state average but below the industry average; the finance offer is above both. The index also helps adjust for cost of living if you're considering moving from another state—for example, New South Wales has an index of 101.2 ($109,658), so a $110,000 offer in Melbourne (index 101.5) is similar to a $110,000 offer in Sydney (index 101.2).

Awards, Super, and Tax Considerations

Most software engineers are not covered by a modern award; they are on individual contracts or enterprise agreements. However, if you are a junior or working for a non-constitutional corporation, the Professional Employees Award may apply. The Fair Work Commission's Modern Awards Pay Database shows minimum rates for classifications under that award. For example, a Level 1 professional engineer (Level 1) might have a minimum of $25.74 per hour (index 24.8) from 1 July 2026, but that is far below market. Super guarantee is 12% from 1 July 2026, and the maximum contribution base is $270,830. Take-home pay after tax (2026-27 rates: nil to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above plus 2% Medicare levy. For a $120,000 salary (index 111), after tax and Medicare, you'd take home about $85,000. That is a rough estimate.

Caveats

No official median for software engineer salary Melbourne is available. The state and industry indices are broad averages and may not reflect your experience level. Use them as a guide, not a guarantee. Always consider total compensation including super, bonuses, and benefits.

Conclusion

When you see a software engineer salary Melbourne in a job ad, use the Salary Index to see where it sits against the national line. The Victoria state index of 98 and the Professional services industry index of 114.7 give context. Use the Salary Index to compare offers and make informed decisions.