Understanding SDE Levels- SDE-1 vs SDE-2 vs SDE-3 Differences (2024)

In technology-based organizations today, different roles and positions are often used interchangeably giving way to a lot of confusion for candidates and even professionals. Some companies use ‘Software Engineer’ and ‘Senior Software Engineer’ to address the employees who build and maintain the software product. While a lot of other companies like Amazon and Microsoft use the SDE(Software Development Engineer) job family (SDE-1, SDE-2, SDE-3) to address the different levels of software developers.

Here’s an informative chart representing the different ways software engineering levels are addressed in big tech companies:

Understanding SDE Levels- SDE-1 vs SDE-2 vs SDE-3 Differences (1)

In this article, we’ll focus on the SDE job family and dissect the different levels by their roles, responsibilities, and experience. But before that, let’s understand exactly what is a software development engineer, in general.

What is a software development engineer?

A software development engineer is responsible for building applications and software systems using the principles of computer science, computer engineering, information technology, and analysis concepts. They work on optimizing the program for better performance delivery and make all software modifications based on client needs.

In addition to writing code, a software development engineer also plans high-level tasks like how an application will work, how to reduce time and space complexity, etc. They have to be great at algorithms and programming.

Let’s understand it better by taking a look at an SDE’s functions at a tech giant like Amazon:

  • They contribute to defining the security, scalability, and low latency of processes
  • They work with cross-functional teams to deliver on-demand projects
  • Deliver and support multi-tiered software applications and software tools
  • SDEs at Amazon also innovate new products for customers by collaborating with fellow employees

Now, the world runs on a hierarchy and so there are levels in the SDE job family as well that are generally denoted by SDE-1, SDE-2, and SDE-3, where SDE 3> SDE 2> SDE 1 in terms of experience and authority.

Understanding the different layers

We’ll go cover their specific roles and expectations in detail but let’s first get a bird-view of how developers at different levels align w.r.t their experiences to build final projects, so that you get a clear picture of the hierarchy involved in a tech team. We won’t go too far and start with a rather local example at Masai.

Recently, we decided to switch from METTL(a platform where we conducted entrance tests) to build an in-house platform named MSAT. (No rewards for guessing, we did that for cost-cutting).

Now, multiple teams had to be involved in making this transition possible. Our director of technology worked with the data team and the product team to understand what was expected out of the project. After understanding the product requirement, he designed the information architecture and the code architecture.

Now, it was time to assign respective roles and micro-services to the SDE-2s, who would then work with the SDE-1s to finish the more ground-level layers of the project. The director of technology overlooked the whole process and shipped the finished product for testing and utility checks.

And that’s how our in-house testing platform MSAT came into existence. Now, things might work a bit differently in bigger companies where there can be more layers, but we just wanted to give you a rough idea before getting started with the specific roles at different levels of software development.

Software Development Engineer-1 (SDE-1)

This is most probably the first step if your tech career was a staircase. Fresh graduates with a computer science degree or people with 1-2 years of experience generally take up the role of an SDE 1.

The candidate is presumed to have a basic understanding of programming, be willing to learn whatever is given to them, follow directions logically, and carry out the assigned tasks.

Finding solutions on Stack Overflow is totally acceptable as long as they understand what they actually copied and receive a code review that conforms to existing code styles. Following SOPs (Standard Operating Procedures) is the bare minimum expectation.

Typically, engineers begin this phase by building test cases and fixing bugs ( yes, this is usually missed in most Universities).

Problem-solving should be one of the strengths. In case of an error, they work on identifying it using tools or log messages, understand what caused it, and collaborate with a team member to fix the error.

An SDE-1 needs additional help from their seniors to perform their job duties. The SDE-1 (Or L1 SWE-2 in the case of Google) typically concentrates on implementation activities in the majority of product-based enterprises.

They convert the design documents given to them by their senior colleagues into code that is ready for production.

Because of this, when you go for an interview, you will frequently hear the phrase "production-ready code." At the very least, an SDE-1 should write accurate coding.

(Here’s a well-detailed article on the interview experience for an SDE1 role at Amazon)

It takes a lot of hard work, domain expertise, problem-solving skills, and a basic understanding of design, to advance to the next level, all of which could take 2-3 years to develop.

Software Development Engineer-2 (SDE-2)

SDE-2 is also commonly addressed as a Senior Software Engineer or Senior Member of Technical Staff in different organizations.

An SDE-2 by capacity is an individual contributor who works in a team. When someone is hired as an SDE-2 or gets promoted to an SDE-2 role, it is expected that they have considerable experience and won't need much help in solving straightforward issues.

A Software Development Engineer-2 (or an E4 in the case of Meta) holds end-to-end service ownership in various product-based organizations. Owning a service means being fully aware of everything that goes into it, even if you don't physically do the coding.

They’re tasked with providing rational, tested, efficient, and maintainable solutions to challenging software issues.

They’re also in charge of training new team members on the clients, what the team's software does, how it is built, tested, used, and how it fits into the overall picture.

What are the basic skills required to get to the SDE-2 level?

Coding skills

It’s a no-brainer that your coding skills will be judged. In interviews, they could slightly modify the requirements to check how you’re adapting the existing code. So, you need to have a good understanding of design patterns.

Besides, you are expected to write clean code and test cases, and be able to understand SoC(Separation of Concerns), DRY abstractions, and assumptions to get to the SDE-2 level.

The most common mistake interviewees do is to begin coding right away. You should address any questions you have about the requirements if you feel there are any.

Problem-Solving

Given end-to-end ownership, you must understand the ‘What's’ and the ‘Why's’ of a particular situation. You should be able to identify bottlenecks, figure out what part of the codebase is causing the outage, and locate the code region if you’re considering moving to an SDE-2 role.

Depth of knowledge

SDE-2 needs to have a broad knowledge of not just the product code but also of the other libraries being used in the project, and the infrastructure components employed by the team. As we mentioned, they guide the new members on how everything fits into the product.

Software Development Engineer-3 (SDE-3)

This is the level right below the architect and the principal architect, so it’s closer to the leadership positions in the company. It is also referred to as a technical lead or a Lead Member of Technical Staff or a Senior SDE in various organizations.

An SDE-3 needs to have the maturity and wisdom of making major decisions in alignment with the product and business objectives.

They needs to have a broad understanding of implementing solutions, dealing with NFRs(including system attributes such as security, reliability, performance, maintainability, scalability, and usability), problem-solving, and the ability to distinguish between short-term and long-term goals.

Given that we live in an SOA (service-oriented architecture) world, it’s necessary for an SDE-3 to have an understanding of distributed systems.

Since they are in a decision-making capacity and get to deal with other SDE-1s and SDE-2s on their team when they ask for guidance, displaying patience at this level is also crucial.

SDE-3 focuses primarily on designing, developing, testing, and deploying software and is skilled at dividing tasks such that they can operate in tandem with other SDEs and reassemble into a seamless launch.

They represent the team (or teams) to other teams and organizations as well, therefore they must be well-conversant with the team's clients, software, and business needs.

Here are a few other responsibilities of an SDE-3 at big companies like Amazon and Flipkart:

  • Builds high-level projects in an independent capacity
  • Works on system design and low-level design
  • Identifies resource wastage and creates systems that all teams in the organization can use
  • Drives the adoption of best practices around coding, design, quality, and performance in their team
  • Actively participates in technology forums & represents the company in external forums

How to progress from SDE 1 to SDE 2, and SDE 3?

Nate Waddoups from Microsoft summed the journey from an SDE 1 to SDE 3 wonderfully-

  • SDE-1 = Creates complex solutions to simple problems.
  • SDE-2 = Creates simple solutions to simple problems.
  • SDE-3 = Creates simple solutions to complex problems.
  • Principal SDE = Makes complex problems disappear.

Progressing from a junior developer to the SDE-3 level is not so much about widening your technical horizon as it is about elevating in other aspects of your personality.

Understanding SDE Levels- SDE-1 vs SDE-2 vs SDE-3 Differences (2)

Of course, you’ll grow technically and gain more depth and technical experience as the scope of your projects increases. Scope and Impact are the two keywords defining the career progression of a software developer.
In addition, you’ll need the following qualities to progress in your career:

Communication Skills

At the SDE-3 level, you’re no longer just an individual contributor. You’ll be working with various teams across the board and so you need proper communication skills.

By that, we don’t just mean using jargon corporate words, but the ability to listen deeply, comprehend the problem statements and lay out the solution in a way that even non-tech folks in your company can understand. So, while you’re working in the capacity of an SDE-1 or SDE-2, you should be proactively improving your communication skills.

(Refer to this guide for more tips on building communication skills)

Leadership Skills

As mentioned before, SDE-3s have to attend both 1st and 2nd-level developers and provide them with guidance and the correct course of action. They are supposed to act as technical arbiters, and facilitators, and to provide technical and design guidance as well as long-term technical direction.

Thus, good leadership skills are a must. One needs empathy and management skills to be a good leader.

Bird-view of the business objectives

SDE-3s operate at a team architecture level. They are more aligned with the business objectives of the organization, and thus they need to have a bird-view of the company’s overall objectives and any structural changes going on in the operations.

While working in your capacity, you also need to keep your eyes and ears open to what’s going on at the upper level, how exactly is the tech team influencing executive decisions, what can be improved in the end product, so on and so forth.

It’s important to note that in tech giants like Amazon, you don’t get promoted into a job, but rather in a job. What that means is that you already have to be working in the capacity of an SDE-3 and demonstrating those qualities in order to get that promotion letter. It’s the same case when transitioning from SDE-1 to SDE-2.

Here’s another fact: Most SDE-1s can grow gradually into an SDE-2 role, but not all of them can become SDE-3s. The levels keep getting tougher like in the Super Mario game we used to play. Even if you’re really good at your core competency i.e. programming, you can't simply expect to be promoted to the senior level as you need to be well-equipped with all other aspects mentioned above.

Final Note

We hope you got the gist of the article and now you can visualize how the road from a fresher to the top echelons in software development looks like. It might be rough but can definitely be travelled.

And to help you travel faster, we’re offering the MasaiX program that includes courses for both tech and non-tech professionals. If you’ve worked in the tech industry for at least 1 year and have some coding experience, you can opt for the part-time Backend Development course starting at zero upfront fee. You only need to pay once you get placed for a minimum of INR 10 LPA.

People with 1 or more years of work experience in a non-tech capacity can opt for our part-time Full-Stack Web Development course, both of which operate on the same pay-after-placement model, and you only pay once placed for a minimum of INR 5 LPA.

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Understanding SDE Levels- SDE-1 vs SDE-2 vs SDE-3 Differences (2024)

FAQs

Understanding SDE Levels- SDE-1 vs SDE-2 vs SDE-3 Differences? ›

SDE-1 = Creates complex solutions to simple problems. SDE-2 = Creates simple solutions to simple problems. SDE-3 = Creates simple solutions to complex problems. Principal SDE = Makes complex problems disappear.

Which is higher SDE 2 or SDE-3? ›

Difference between SDE-II and SDE-III

These levels are different because at each level means that you have more experience than the other level. The main difference between SDE-II and SDE-III is experience. The SDE-III has more experience than SDE-II. There are different ways your experience is counted.

What is the job description of SDE-3? ›

Position Responsibilities: Drive the architecture and design of large-scale, multi-tiered, distributed software applications, tools, systems and services using object-oriented design, distributed programming, Java and C/C++.

Is SDE 1 l3 or L4? ›

SDE I (L4): This is a software engineer in the greater market, someone who usually has between one to three years of industry experience. In this level you will be responsible for some component work, you may improve features in tools & are responsible for solving problems across products.

What is SDE3 experience at Amazon? ›

As an Amazon SDE-3, you're expected to work directly with other PEs(Principal Engineer) and TPMs(Technical Program Manager) in the organization. The focus is to define the experience and develop the tech architecture of all the platforms.

What is the salary of SDE3 in Amazon? ›

₹77,74,496

This estimate is based upon 5 Amazon SDE3 salary report(s) provided by employees or estimated based upon statistical methods. When factoring in bonuses and additional compensation, a SDE3 at Amazon can expect to make an average total pay of ₹82,53,234 per year.

What is l1 l2 l3 in SDE? ›

Level 1 - Software Engineer. Level 2 - Senior Engineer. Level 3 - Staff Engineer (alternate: Senior Staff Engineer) Level 4 - Principal Engineer.

What level is SDE 3 at Google? ›

Software Engineer II (Level 3 | 0-1 year of experience) Software Engineer III (Level 4 | 2+ years of experience) Senior Software Engineer (Level 5 | Manager I equivalent) Staff Software Engineer (Level 6 | Manager II equivalent)

What is the salary of SDE 3 at Walmart? ›

Average Walmart Software Engineer III salary in India is ₹ 28.5 Lakhs for experience between 2 years to 8 years. Software Engineer III salary at Walmart India ranges between ₹ 15.0 Lakhs to ₹ 43.0 Lakhs. According to our estimates it is 33% more than the average Software Engineer III Salary in Retail Companies.

How much does a SDE 3 earn in us? ›

Average Annual Total Compensation is $218k

Employees as Sde3 earn an average of $218k, mostly ranging from $157k to $456k based on 15 profiles.

What is the salary of SDE 2 in Amazon? ›

The typical Amazon Software Development Engineer II salary is ₹31,10,903 per year. Software Development Engineer II salaries at Amazon can range from ₹2,51,530 - ₹56,44,845 per year.

How much does an L4 SDE make at Amazon? ›

Amazon Software Engineer Salaries
Level NameTotalBase
SDE I L4(Entry Level)$166K$135K
SDE II L5$247K$173K
SDE III L6$343K$209K
Principal SDE L7$476K$246K

What is the salary of SDE 2 in Walmart? ›

SDE-2 salaries at Walmart Global Tech can range from ₹12,85,599 - ₹30,48,194 per year.

What is SDE 3 experience level? ›

Software Development Engineer-3 (SDE-3)

This is the level right below the architect and the principal architect, so it's closer to the leadership positions in the company. It is also referred to as a technical lead or a Lead Member of Technical Staff or a Senior SDE in various organizations.

What is L3 in SDE? ›

Responsibilities of Software Engineer 1(L3)

The main responsibilities of this position is to. Design, develop, test, deploy, maintain, and improve the software. Manage project priorities, deadlines, and deliverables on a per-project basis.

How much does an L5 SDE make at Amazon? ›

The estimated total pay for a L5 Software Development Engineer at Amazon is $219,373 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $143,705 per year.

What is the highest SDE 2 salary in Amazon? ›

How much does a SDE2 at Amazon make? The typical Amazon SDE2 salary is ₹29,61,038 per year. SDE2 salaries at Amazon can range from ₹2,79,343 - ₹42,77,658 per year.

What is the highest salary of Amazon SDE 3? ›

₹61,82,681

Software Development Engineer III salaries at Amazon can range from ₹40,37,225 - ₹79,87,001 per year.

What is the highest salary of Amazon SDE 1? ›

Amazon Sde1 Salary FAQs

Sde1 salary at Amazon India ranges between ₹ 3.2 Lakhs to ₹ 500.8 Lakhs.

What is L1 L2 L3 L4? ›

L1 spinal nerve provides sensation to the groin and genital regions and may contribute to the movement of the hip muscles. L2, L3, and L4 spinal nerves provide sensation to the front part of the thigh and inner side of the lower leg. These nerves also control movements of the hip and knee muscles.

What is difference between L1 L2 and L3? ›

The main difference between L1 L2 and L3 cache is that L1 cache is the fastest cache memory and L3 cache is the slowest cache memory while L2 cache is slower than L1 cache but faster than L3 cache. Cache is a fast memory in the computer. It holds frequently used data by the CPU.

How much does Google pay L3 SDE? ›

The salary starts at $83,640 per year and goes up to $176,588 per year for the highest level of seniority.

How much does a SDE 3 at Google California make? ›

The typical Google Software Engineer III salary is $1,73,578 per year.

What is Google's acceptance rate for SDE? ›

So, taking into account that 0.2% of applicants get hired by Google, the acceptance rates for full-time software engineers and software engineer internships are somewhere in that 0.2-3.75% range.

How much does a L5 make at Google? ›

Google Salary FAQs

What is the salary trajectory of a Senior Software Engineer (L5)? The salary trajectory of a Senior Software Engineer (L5) ranges between locations and employers. The salary starts at $83,031 per year and goes up to $184,346 per year for the highest level of seniority.

How much does a SDE 3 at Workday make? ›

$213,948. The estimated total pay for a Software Development Engineer III at Workday is $213,948 per year.

What is the salary of SDE 3 in Walmart Seattle? ›

Walmart Software Engineer Salaries
Level NameTotalBase
L1 Software Engineer(Entry Level)$116K$106K
L2 Software Engineer II$105K$93K
L3 Software Engineer III$155K$125K
L4 Senior Software Engineer$215K$158K

What is the salary of SDE 2 in Microsoft? ›

SDE-2 salary at Microsoft Corporation India ranges between ₹ 22.6 Lakhs to ₹ 60.0 Lakhs.

How much does Google pay SDE 3 in New York? ›

How much does a Software Engineer III at Google make? The typical Google Software Engineer III salary is $1,68,000 per year. Software Engineer III salaries at Google can range from $1,51,751 - $2,00,142 per year.

How much Google pay for SDE 1 in USA? ›

The typical Google SDE1 salary is US$1,46,939 per year. SDE1 salaries at Google can range from US$1,13,133 - US$1,58,519 per year. This estimate is based upon 6 Google SDE1 salary report(s) provided by employees or estimated based upon statistical methods.

What is the highest paying SDE 2 salary? ›

SDE-2 salary in India ranges between ₹ 10.9 Lakhs to ₹ 50.0 Lakhs with an average annual salary of ₹ 27.0 Lakhs.

What is the salary of SDE 2 in Google? ›

What is the salary of SDE-2 at Google ? Average Google SDE-2 salary in India is ₹ 51.1 Lakhs for experience between 3 years to 5 years. SDE-2 salary at Google India ranges between ₹ 30.0 Lakhs to ₹ 81.0 Lakhs. According to our estimates it is 91% more than the average SDE-2 Salary in Internet Companies.

What is the salary of SDE 2 in USA? ›

The typical Amazon SDE2 salary is US$1,56,767 per year. SDE2 salaries at Amazon can range from US$1,01,820 - US$2,35,858 per year. This estimate is based upon 168 Amazon SDE2 salary report(s) provided by employees or estimated based upon statistical methods.

What is the average salary of SDE 2 in US? ›

As of May 2, 2023, the average annual pay for a SDE II in the United States is $100,472 a year. Just in case you need a simple salary calculator, that works out to be approximately $48.30 an hour. This is the equivalent of $1,932/week or $8,372/month.

Can you negotiate Amazon salary? ›

Equity compensation is a central part of Amazon's total comp philosophy, and it's fully negotiable. It's actually where our clients have made some of the largest improvements in their compensation when we guided them through their salary negotiation with Amazon.

What is the salary of SDE 1 in Microsoft? ›

Average Microsoft Corporation Sde1 salary in India is ₹ 39.3 Lakhs for less than 1 year of experience to 4 years. Sde1 salary at Microsoft Corporation India ranges between ₹ 18.0 Lakhs to ₹ 55.0 Lakhs. According to our estimates it is 145% more than the average Sde1 Salary in Software Product Companies.

What does L4 mean at Amazon? ›

Amazon equates years of experience with each level as follows: Level 4: 1-3 Years of Experience. Level 5: 3-10 Years of Experience. Level 6: 8-10+ Years of Experience.

What is the salary of SDE 2 at Google California? ›

SDE2 salaries at Google can range from $1,41,205-$1,80,521.

How much does a SDE 2 earn in Texas? ›

As of May 3, 2023, the average annual pay for a Software Engineer 2 in Texas is $90,469 a year.

What is the salary of SDE 5 in Walmart? ›

SDE (Software Development Engineer) salary at Walmart India ranges between ₹ 17.5 Lakhs to ₹ 40.0 Lakhs. According to our estimates it is 81% more than the average SDE (Software Development Engineer) Salary in Retail Companies.

What is the salary of SDE 3 at Groupon? ›

Software Development Engineer III salary at Groupon India ranges between ₹ 25.0 Lakhs to ₹ 43.1 Lakhs.

What is the salary of SDE 3 at Sigmoid? ›

The typical Sigmoid Software Development Engineer salary is ₹12,29,824 per year. Software Development Engineer salaries at Sigmoid can range from ₹7,76,280 - ₹15,08,702 per year.

How many years of experience do you need for SDE 2? ›

Skills Required for SDE 2🤹

The basic qualifications needed for the Amazon SDE 2 role are as follows: A Bachelor's degree in Computer Science or related technical discipline. 3+ years of Software Development experience.

What does L1 L2 L3 mean? ›

Terminology. The three winding end connected together at the centre are is called the neutral (denoted as 'N'). The other ends are called the line end (denoted as 'L1', 'L2' and 'L3'). The voltage between two lines (for example 'L1' and 'L2') is called the line to line (or phase to phase) voltage.

What does L1 L2 L3 support mean? ›

They are experts in their domain and handle the most difficult problems, mostly assisting both level 1 and level 2 specialists. They do also code changes, research and develop solutions for challenging new or unknown issues. Infogain's L3 Support covers base application, customizations, and integrations.

What is SDE 3 or staff engineer? ›

Staff Engineer (SDE 3):

Can design larger systems, work effectively across multiple teams to deliver large projects, and leads his/her team to technical success. Provides solid technical leadership for their team. Has demonstrated soft skills and political acumen, and is able to negotiate across teams.

What is Amazon L7 salary? ›

Employees at Amazon as Senior Sdm L7 earn an average of $462k, mostly ranging from $470k per year to $603k per year based on 3 profiles. The top 10% of employees earn more than $600k per year.

What is L5 at Amazon equivalent to? ›

SDE II (L5) Amazon Software Engineer Salary

Reminder: Amazon's level structure is unique and an L5 SWE at Amazon is equivalent to an E4/L4 SWE at Facebook or Google. The top of band numbers are based on SF/NYC pay bands - Seattle will be lower.

How much does an l6 make at Amazon? ›

$126K (Glassdoor est.)

What is the salary of SDE 2 SDE 3? ›

The national average salary for a Software Development Engineer (SDE) III is ₹33,01,324 in India.

What is the highest package for SDE 3? ›

Software Development Engineer III salary in India ranges between ₹ 13.0 Lakhs to ₹ 55.0 Lakhs with an average annual salary of ₹ 26.2 Lakhs.

What is the salary of SDE Level 3? ›

The national average salary for a SDE-III is ₹30,00,000 in India.

What is the difference between Google Software Engineer 3 and 2? ›

SWE-I (Level 2) is a software engineering intern, expected to be in the junior or senior year of a four year degree program. SWE-II (Level 3) is an entry level full-time software engineer. An L3 SWE is generally someone who recently graduated with an undergraduate or Master's degree, or equivalent education.

What is the highest SDE-2 salary in Amazon? ›

How much does a SDE2 at Amazon make? The typical Amazon SDE2 salary is ₹29,61,038 per year. SDE2 salaries at Amazon can range from ₹2,79,343 - ₹42,77,658 per year.

What is the salary of SDE 1 2 3 in Google? ›

The estimated take home salary of a SDE-2 at Google ranges between ₹ 2,98,287 per month to ₹ 3,10,001 per month in India.

How much does Fedex pay SDE 3? ›

The salary starts at $80,456 per year and goes up to $192,081 per year for the highest level of seniority.

What is the salary of SDE 3 at PayPal? ›

What is the salary of Software Engineer III at PayPal ? Average PayPal Software Engineer III salary in India is ₹ 36.5 Lakhs for experience between 5 years to 11 years. Software Engineer III salary at PayPal India ranges between ₹ 20.0 Lakhs to ₹ 56.0 Lakhs.

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