The first half of 2025 has been anything but predictable for fintech hiring. Engineering salaries, once relatively steady, have jolted upwards and sideways in ways that make last year’s forecasts look outdated.
For scale-up founders and talent leaders, this isn’t just another market report — it’s a warning light. Salary expectations are now moving as fast as venture rounds used to. Miss the shifts, and you risk losing engineers to competitors who have already adapted their offers.
Let’s look at what’s driving these changes and where fintech engineering pay stands at the mid-year mark.
The Big Picture: Salary Bands in Motion
If 2024 was defined by budget caution and slower hiring, 2025 has flipped the script. The rebound in venture funding during Q1 triggered a wave of team expansions, particularly in payments, embedded finance, and AI-powered risk tools. With more capital came fresh demand for engineers — and rising salaries to match.
Here’s how the average benchmarks look today across the UK fintech market:
- Mid-Level Software Engineers: £70k–£85k (up around 9% since December 2024)
- Senior Engineers: £95k–£120k (climbing fastest, up 12%)
- Engineering Managers: £115k–£135k (steady but edging higher in London and Dublin)
- Data Engineers: £90k–£115k (up 10% amid AI/ML hype)
- DevSecOps Specialists: £100k–£125k (premium roles with 14% jumps)
Contract day rates tell a similar story: senior contractors are now commanding £650–£750/day, with some niche AI/ML engineers touching £900/day when IR35 status is outside.
Why Salaries Are Rising Faster Than Expected
Three forces are shaping the mid-year surge:
- AI’s Hiring Ripple
Every fintech, whether in lending, compliance, or wealth tech, is scrambling for AI expertise. The result? Salaries for data and machine learning engineers are rising like tide levels after a storm surge.
- Regulatory Pressure
New FCA (Financial Conduct Authority) requirements and tightening European data rules mean that cybersecurity and DevSecOps specialists have become indispensable. Companies aren’t hesitating to pay extra for talent that shields them from fines and reputational damage.
- Funding Rounds Are Back
After two cautious years, seed and Series A rounds are flowing again. When early-stage firms raise, they need engineers yesterday. That urgency is inflating salary offers, particularly for full-stack and product-facing developers.
Regional Hotspots: London, Dublin, and Beyond
London remains the centre of fintech pay gravity. Senior engineers in Canary Wharf and Shoreditch are now fielding offers 10–15% above the UK average. Dublin is closing the gap fast, driven by US firms planting European engineering hubs there.
Elsewhere, the gap between regional UK salaries and London has narrowed. A mid-level engineer in Manchester, once £10k behind London, now sees only a £4–5k differential. Remote-first hiring is smoothing out regional pay bands, though London perks (equity, hybrid flexibility) still hold sway.
The GCC and European Market Pulse
Rec2Tech’s clients in the Gulf Cooperation Council (GCC) and mainland Europe are seeing similar dynamics:
- Dubai: Salaries in fintech engineering are up 11% year-on-year, with tax-free compensation making offers highly competitive.
- Berlin: Steady growth in crypto and DeFi roles has kept salaries strong, averaging €85k–€120k for senior engineers.
- Amsterdam: Payments specialists are in demand, pushing senior ranges to €95k–€130k.
For scale-ups with cross-border hiring ambitions, benchmarking salaries locally is now mission-critical. What looks like a strong London offer may fall flat against Dubai’s tax-free allure or Berlin’s equity-heavy packages.
Equity, Bonuses, and Non-Cash Perks
It’s not all about base pay. Candidates are scrutinising equity and retention bonuses more carefully in 2025 than in any previous cycle.
- Equity packages are making or breaking offers, especially for engineers joining pre-Series B companies.
- Retention bonuses tied to product launches or compliance milestones are growing in popularity.
- Flexibility remains non-negotiable. Engineers are willing to trade some salary for four-day weeks or asynchronous work setups.
Fintechs that ignore these levers risk being outbid, even if their base salary is competitive.
Gender Pay Gaps and Inclusion Trends
The mid-year data also reveals a less encouraging reality: the gender pay gap in fintech engineering remains at 14% in the UK, slightly improved from last year’s 16%. Progress is happening, but slowly.
Companies that invest in structured benchmarking and transparent salary bands are narrowing gaps faster. Those that leave pay decisions to “case-by-case negotiation” continue to lag behind.
What Hiring Managers Need to Do Now
Salaries are shifting quickly, and waiting for year-end reports risks leaving your offers out of touch. Here’s where fintech leaders should focus in the next six months:
- Update Your Benchmarks Quarterly: Mid-year updates are no longer a nice-to-have; they’re survival tools. Stale salary data means losing candidates mid-process.
- Balance Pay with Retention Levers: If you can’t outbid Big Tech on salary, equity and career growth must carry more weight.
- Move Fast on Offers: Engineers are typically holding 3–4 competing offers right now. Delays kill deals.
- Plan for 2026 Budgets Now: This year’s rises will compound. Waiting until December to budget for 2026 will put you behind.
Why Rec2Tech Tracks Salary Shifts in Real Time
At Rec2Tech, we’ve seen retention dip whenever founders underestimate how fast the market is moving. Our data-driven hiring models don’t just shortlist the right engineers — they also benchmark offers against live market conditions, ensuring placements stick beyond the 12-month mark.
With 96% of Rec2Tech placements still in seat after a year, it’s clear that matching compensation to market reality isn’t optional. It’s the difference between building a stable team and fighting endless turnover.
A Storm Worth Preparing For
Fintech salaries in 2025 are shifting like summer weather over Canary Wharf: hot, humid, and suddenly turbulent. Founders who treat pay as a once-a-year exercise will be caught in the storm. Those who adjust mid-year, bake flexibility into offers, and leverage smarter benchmarking will ride out the volatility with stronger, more loyal teams.
At Rec2Tech, our process blends behavioural benchmarking, psychometrics, and data-driven shortlisting to deliver hires that stay. By aligning compensation with market reality and cultural fit, we help fintech scale-ups secure engineers who remain in seat long after day one.If you’d like tailored benchmarks for your engineering team — across London, Europe, or the GCC — Rec2Tech can help. Schedule a strategy call today: