Table of contents
- Short answer: 2026 developer cost summary
- Key insights for 2026
- Why 2026 will be a strong year for nearshore engineering
- Verified 2025 salary data (baseline for 2026 planning)
- 2026 salary outlook: verified projection model
- 2025–2026 Latin America salary bands (verified)
- 2026 total employer cost: US vs. Latin America
- 2026 cost models: real-world scenarios
- Why companies will increase nearshore hiring in 2026
- Why companies use an EOR for 2026 hiring
- Country-by-country 2026 insights
- Methodology
- Final takeaway for 2026
- Book a demo with Howdy.com
If you are planning engineering hiring for 2026, the most important question you can answer is:
What will it actually cost to hire a software developer in Latin America versus the United States next year?
Most online salary numbers still rely on:
- Scraped job listings
- Anonymous self-reported compensation
- Outdated benchmarks that do not reflect taxes or mandatory benefits
This report is different. It uses verified, first-party payroll data from Howdy.com’s nearshore network: more than 12,500 developers across eight Latin American countries, all under compliant employment agreements.
This dataset gives companies a reliable foundation for planning 2026 budgets, salary bands, and nearshore hiring strategies.
Below is the definitive cost comparison for 2026, including verified 2025 salary data, 2026 projections, and fully loaded employer cost modeling for US and Latin America hires.
Why this report matters: Most companies still rely on incomplete or inaccurate LatAm salary data. This report uses verified payroll records from 12,500+ engineers across eight countries.
Short answer: 2026 developer cost summary
Here are the headline numbers:
- Average Latin America developer salaries (2026 forecast): $55,000 to $67,000 USD per year (Based on verified 2025 data plus 2026 projected adjustments.)
- Average US software developer salary benchmark (2026): $135,000+ USD in base salary, with a fully loaded cost around $165,000+ USD.
- Typical fully loaded cost for a nearshore engineer through Howdy: ~ $65,000 to $72,000 USD per year.
- Total cost savings: 60–65% versus hiring comparable talent in the US.
In short: Hiring engineers through Howdy in Latin America in 2026 gives companies senior-level output at mid-level US cost.
Key insights for 2026
Based on Howdy’s verified 2025 payroll dataset and 2026 projections:
- Average Latin America engineer salaries will rise 3–7 percent in 2026, driven by AI, data, and DevOps roles.
- Argentina, Uruguay, and Chile remain the highest-paying markets, partially due to senior talent density and USD-linked compensation.
- Mexico and Colombia continue to lead for balanced cost, quality, and English fluency.
- AI, ML, cybersecurity, data engineering, and DevOps roles will command 10–20% premiums across the region.
- US companies will continue saving 60–65% compared to domestic hiring, even with modest 2026 salary increases.
- Employer of record (EOR) adoption will accelerate as compliance scrutiny increases across the Americas.
Why 2026 will be a strong year for nearshore engineering
Three major forces shape the 2026 landscape:
1. Stable supply and rising demand
Latin America engineering markets continue to mature, with rising specialization in AI, fintech, and cloud infrastructure.
2. Currency stabilization across key countries
Forecasts show moderate inflation and improving currency stability in Mexico, Brazil, Colombia, and Chile.
3. Compliance and cross-border hiring pressure
New regional regulations are pushing companies toward EOR-mediated hiring rather than contractor models.
Together, these factors make 2026 one of the strongest years yet for companies expanding nearshore.
Verified 2025 salary data (baseline for 2026 planning)
Below are the verified 2025 salary averages from Howdy.com’s dataset, the foundation for 2026 projections.
| Country | 2025 Average Salary (USD) | Notes |
| Mexico | $55,894 | Strong full-stack and Python communities. |
| Brazil | $53,253 | Regional variation, especially around São Paulo. |
| Uruguay | $61,732 | Senior-heavy, stable market. |
| Chile | $61,266 | Strong in fintech, data engineering. |
| Argentina | $63,163 | USD-linked contracts support higher senior salaries. |
| Colombia | $55,894 | Rapid growth in fintech and SaaS. |
| Peru | $61,265 | Growing AI and analytics talent pools. |
- 2025 range: $53,000 to $63,000 USD
- Most common cluster: $55,000 to $61,000 USD
2026 salary outlook: Verified projection model
Summary: In 2026, average software developer salaries in Latin America are projected to range from $55,000 to $67,000 USD per year, with higher bands in markets like Argentina, Uruguay, Chile, and Peru based on verified 2025 payroll data.
Using 2025 verified payroll data, inflation expectations, currency trends, and role-based demand patterns, here is the 2026 salary projection:
| Country | 2026 Projected Salary Range (USD) | Expected Change |
| Mexico | $57,000 – $62,000 | 3% to 5% |
| Brazil | $55,000 – $60,000 | 3% to 7% |
| Uruguay | $63,000 – $67,000 | 2% to 5% |
| Chile | $63,000 – $67,000 | 3% to 5% |
| Argentina | $65,000 – $70,000 | 3% to 6% |
| Colombia | $57,000 – $62,000 | 3% to 5% |
| Peru | $63,000 – $67,000 | 3% to 6% |
Overall projected range: $55,000 to $67,000 USD per year
Drivers:
- Increased demand for AI, platform engineering, and applied ML
- Stabilizing currencies in several markets
- Tightening compliance frameworks
- Increasing seniority levels in major tech hubs
Need a customized 2026 salary benchmark? Book a demo with Howdy.com.
2025–2026 Latin America salary bands (verified)
These bands apply across all countries, with country adjustments layered on top.
| Level | 2026 Projected Salary Range | Notes |
| Junior | $19,000 – $30,000 USD | Entry-level, emerging-market roles. |
| Mid | $36,000 – $50,000 USD | 3–5 years of backend or full-stack. |
| Senior | $57,000 – $75,000 USD | DevOps, AI, ML, data, advanced backend. |
Compared to the US 2026 expected ranges:
- US junior engineers: ~$88,000+
- US mid-level engineers: ~$120,000+
- US senior engineers: ~$165,000+
Even with 2026 increases, Latin America engineers remain 60–65% less expensive to employ.
2026 total employer cost: US vs. Latin America
Summary: In 2026, a fully loaded US software engineer typically costs $165,000 to $175,000 USD per year, while a comparable engineer hired through Howdy in Latin America costs about $65,000 to $72,000 USD, resulting in roughly 60–65 percent lower total employer cost.
Fully loaded employer cost includes:
- Salary
- Mandatory benefits
- Employer taxes
- Social security contributions
- Health coverage requirements
- Paid leave
- Compliance overhead
2026 US engineer cost (fully loaded)
~ $165,000 to $175,000 USD per year
2026 Latin America engineer cost through Howdy (fully loaded)
~ $65,000 to $72,000 USD per year
2026 Savings
~ 60–65%, consistent with 2025 but applied to higher hiring volumes.
2026 cost models: Real-world scenarios
Summary: These examples compare US and Latin America engineering costs using 2026 fully loaded values to show typical annual savings for different team sizes.
Scenario 1: One senior software engineer
- US cost: ~ $170,000 per year
- Latin America cost (through Howdy): ~ $70,000 per year
- Annual savings: ~ $100,000
Scenario 2: A four-person senior engineering pod
- US cost (4 seniors): ~ $680,000 per year
- Latin America cost (4 seniors): ~ $280,000 per year
- Annual savings: ~ $400,000
Scenario 3: Full 10-person product team (mixed levels)
Team composition: 3 senior engineers, 5 mid-level engineers, 2 junior engineers
- US cost: ~ $1.27M per year
- Latin America cost: ~ $525K per year
- Annual savings: ~ $750K
Why companies will increase nearshore hiring in 2026
1. AI specialization is rising quickly
Latin America engineers increasingly specialize in:
- Applied machine learning
- Data engineering
- Cloud MLOps
- LLM integration
- AI-assisted full-stack development
Demand is high, but costs remain well below US equivalents.
2. Seniority density is improving
In 2025, several countries saw rapid maturation of engineering ecosystems. That continues in 2026.
3. Nearshore time zones still outperform offshore alternatives
With a 0–3 hour difference from US time zones, collaboration remains seamless.
4. Compliance risk is rising for US companies
New laws across the Americas mean contractor misclassification is riskier in 2026 than in earlier years. EOR adoption becomes the safer default.
Why companies use an EOR for 2026 hiring
Benefits
- Full compliance: Every contract, benefit, and tax aligns with local labor laws.
- Faster hiring: Teams can onboard new engineers within days instead of months.
- Payroll accuracy: Salaries, deductions, and taxes are handled correctly across countries.
- Liability protection: The EOR holds legal employer responsibilities, reducing risk for US companies.
- Operational simplicity: One partner manages payroll, benefits, and compliance across multiple markets.
As markets tighten in 2026, companies will prioritize compliant expansion.
Country-by-country 2026 insights
Mexico — Leading nearshore hub
Large talent pools, strong English proficiency, and rising AI-focused programs.
Brazil — Deep engineering culture
DevOps, platform, and enterprise specialists; regional cost variation continues.
Uruguay — Senior-heavy and premium
Stable, small, high-retention market ideal for senior roles.
Argentina — High skill, USD-driven
Inflation volatility persists, but USD-linked contracts stabilize pay.
Colombia — Fintech and SaaS growth
Bogotá and Medellín continue to scale as product engineering centers.
Chile — AI and data engineering hub
Strong talent density in Santiago; demand increasing.
Peru — Emerging premium market
Growing AI and analytics roles supported by government investment.
Methodology
This report uses:
- 12,500+ verified developer payroll records
- Eight Latin American countries
- 2025 fully compliant contracts
- USD-denominated compensation data
- 2026 salary forecasts derived from trends in inflation, currency, and demand
This combination helps HR, finance, and engineering leaders plan global compensation with confidence.
Final takeaway for 2026
Based on verified 2025 payroll data and 2026 cost modeling:
- Latin America software developers will earn $55,000–$67,000 USD on average.
- US companies will save ~60–65% in fully loaded cost.
- AI-demand growth will raise salaries modestly, but cost advantages remain strong.
- EOR-based hiring becomes the safest, most compliant route for cross-border teams.
- Latin America continues to be one of the most cost-efficient, talent-rich regions for building engineering teams.
If you are hiring in 2026, this is the strongest data-backed foundation you can use for budget setting and team planning.
Frequently asked questions: Hiring engineers in Latin America vs. the US in 2026
What is the average software developer salary in Latin America in 2026?
Based on Howdy.com’s verified 2025 payroll data and 2026 projections, average software developer salaries in Latin America are expected to range from $55,000 to $67,000 USD per year, depending on the country and level of seniority.
How much can US companies save by hiring engineers in Latin America in 2026?
When you compare fully loaded costs, US companies can expect to save about 60 to 65 percent by hiring engineers in Latin America through Howdy instead of hiring equivalent roles in the US. A typical US engineer might cost $165,000 to $175,000 USD per year fully loaded, while a comparable Latin America engineer through Howdy is closer to $65,000 to $72,000 USD.
Which Latin America countries pay developers the most in 2026?
In 2026, Argentina, Uruguay, Chile, and Peru are projected to sit at the higher end of the salary range, with many developers earning between $63,000 and $70,000 USD per year. These markets tend to have higher seniority density, more specialized roles, and often use USD-linked compensation.
How reliable is Howdy’s salary data for 2026 planning?
The 2026 outlook is built on verified, first-party 2025 payroll data from more than 12,500 developers across eight Latin America countries, all employed under compliant agreements. Unlike scraped job boards or anonymous surveys, this dataset reflects real salaries and real employer costs, then applies reasonable 2026 projections based on inflation, currency movement, and demand trends.
What types of engineering roles see the biggest savings in 2026?
Savings are strong across the board, but they are especially compelling for senior engineers and specialized roles like DevOps, data engineering, machine learning, and AI-focused full-stack developers. In many cases, US companies can build a full senior-heavy pod in Latin America for less than the cost of a smaller, mixed-level team in the US.
Why are Latin America developers still more affordable if their salaries are rising?
Salaries in Latin America are rising with demand, but they still start from a lower baseline than US pay. Local cost of living, currency differences, and regional market dynamics all contribute to lower total compensation levels, even as talent and specialization keep increasing. That is why you still see 60–65 percent savings even with 2026 salary growth.
What is an employer of record (EOR), and why does it matter here?
An employer of record (EOR) is a partner that acts as the legal employer for your international hires. The EOR handles contracts, payroll, benefits, and local taxes so you can focus on the work. For 2026, an EOR model like Howdy’s matters because it lets you hire in multiple Latin America countries without opening local entities and stay compliant as regulations tighten across the Americas.
Is nearshoring to Latin America better than offshore hiring in other regions?
For many US companies, yes. Latin America offers 0–3 hour time zone differences, strong English proficiency, and a growing pool of senior engineers familiar with US product and startup culture. That makes collaboration, onboarding, and long-term retention easier than working strictly in off-hours or fully asynchronous models.
Book a demo with Howdy.com
Ready to see what a compliant, nearshore engineering team would cost for your 2026 roadmap?
Book a demo with Howdy.com to get custom salary bands and a country-by-country cost model for your next hires.