SDE-1 vs SDE-2 vs SDE-3 Differences: Understand SDE Levels

In most tech companies, software development engineers, or SDEs, are categorized into different levels or tiers based on their skills, experience, and responsibilities. SDE1, SDE2, and SDE3 are commonly seen divisions in the industry. SDE1 are university graduates or freshers with 1 or 2 years of experience, these require a little bit of training before getting into a project or work.

SDE2 is a little bit more experienced in the industry and holds an intermediate-level position with higher responsibilities. SDE3 works on designing and architecture and is capable of identifying problems and understanding several design approaches that come with experience. SDE3 are moreover tech head or head of a team and they train or guide SDE1 and SDE2. In this article, we will understand various SDE levels and how to prepare for each of them as we grow in our careers.

What is a Software Development Engineer (SDE)?

A software development engineer, or SDE, is a developer responsible for creating innovative cross-platform applications and system software and maintaining existing services. They work on optimization and performance, planning software products, etc.

Product managers, designers, and quality assurance engineers are examples of cross-functional teams with which an SDE works to make sure the software developed satisfies user needs and business goals. A strong grasp of programming languages and software development techniques, as well as creativity and problem-solving abilities, are essential for this dynamic role.

Understanding SDE levels 

Let us understand why we need this distinction in the job roles. Note that it is not just about years of experience; it is also about expertise and the ability to handle responsibilities, both successes and failures. 

The distinction between levels of SDEs has varying levels of experience, expertise, and responsibility. Software development might seem like a simple task, but it requires more than just development. Contribution to important tasks beyond coding requires careful planning, modularization, and architectural design, which are areas where senior engineers play a critical role.

SDE1, SDE2, and SDE3 are the terms used by most companies but different companies have different terminologies to represent the same level. Have a look at the table below:

Junior engineers (SDE-1s) may focus on learning and implementing basic features, while more experienced engineers (SDE-2s and SDE-3s) take on more complex tasks and leadership roles. The distinction between SDE levels allows for more efficient resource utilization, career development, and risk mitigation in software development projects. 

Let us understand each of these SDE-1, SDE-2, and SDE-3 in detail.

What is SDE 1 – Software Development Engineer 1?

An SDE 1 is typically a recent college hire or fresher who is a novice junior engineer. Freshers must have basic programming skills and be ready to learn and explore new technologies.  

Skills Required

To become an SDE1, you must have the following basic skills:

• A clear understanding of the basics of computer science topics such as Algorithms, Data Structures, Object-oriented Programming, Databases, Compiler Design, Networks, etc.
• Excellent coding skills in at least one of the popular programming languages, such as Java, C++, Python, etc.
• Good Problem-Solving skills are a must and might help you stand out from the crowd. 
• You will also need verbal and written communication skills. If you are a good listener, it is always a plus. 
• Thinking big in terms of programming, and being able to think about scalability and future development will help one build the best and most optimal solutions.

Responsibilities

The key responsibilities of SDE1 include:

• Software development Engineer 1 usually works closely with SDE 2 and SDE 3 to deliver quality products. 
• They are presumed to understand basic programming, are willing to learn new things and follow directions to work independently.
• SDE1 are allowed to find solutions on Stack Overflow as far as they know the impact of the code and they get approval from the senior.
• Seniors design documents and SDE1 converts it to production-ready code.
• They are included in design discussions, patents, and innovation drives.

Education Requirements

Let us now discuss some of the essential steps to becoming SDE 1:

• Bachelor’s degree in BCA/Computer science engineering, etc. 
• Learn to code in at least one programming language, like C, C++, Python, Java, or JavaScript. 
• Have a strong grasp of Data Structures like Arrays, Trees, LinkedLists, Queues, Stacks, Graphs, Maps, Sets, etc. 
• Along with Data Structures, learn important algorithms like Binary Search, Sorting Algorithms, Graph algorithms, etc.
• Strong Computer Science fundamentals are also necessary, like Operating Systems, object-oriented Programming, Computer Networks, Database Management Systems, etc. Rather than simply mugging these up try to understand and be able to apply.
• Practice for Interviews, this might take about 6 months, look for previously asked interview questions of the target company. You can also refer to MAANG company questions.
• An internship experience can also help you get there faster.

Read more: SDE Roadmap For Beginners

What is SDE 2 – Software Development Engineer 2?

Senior Software Engineers, or SDE2, are in charge of planning, developing, constructing, maintaining, and upgrading software applications, in addition to writing well-designed code. Often, 3 or more years of experience are required for the position of SDE2. SDE2 candidates should possess strong analytical and problem-solving abilities, as well as a keen eye for accuracy and detail, as well as sound, imaginative, and logical thinking.

Skills Required

The following are the requirements to be fulfilled to become an SDE2:

• Should have prior experience in delivering high-quality software design and architecture. 
• Proficient in finding bugs and debugging code.
• Should be able to guide junior engineers and lead a team of junior developers in building efficient software.
• Proficient in programming along with other computer science topics such as databases, data structures, algorithms, compiler design, etc.
• Ability to work both independently and in a team, along with strong communication abilities, is a must. Working with clients and junior staff requires these. 
• Leadership traits are not the only important requirements; time management and problem-solving abilities are also critical.
• Lastly, having familiarity with multiple operating systems is always a plus.

Responsibilities

As we advance in roles, there are fewer coding tasks and more responsibilities.

• As an SDE2, you are responsible for understanding the overall business requirements and planning and developing the software accordingly.
• Building and managing tools, conferring with users, and studying the system flow, data flow, work processes, etc. of the software development lifecycle.
• Identify and prioritize tasks, and perform validation and verification testing. 
• Collaborate with internal teams, vendors, etc. to add functionalities and improve products.
• Provide mentorship to junior and mid-level engineers.

Education and Experience Requirements

• A bachelor’s degree in computer science or related field. 
• A minimum of 3 years experience developing application software.
• Knowledge and experience in web architecture.
• Strong coding and problem-solving skills.

What is SDE 3 – Software Development Engineer 3?

SDE3 positions are too close to leadership roles at a company. They come right below the architects and principal architects. Normally used terminologies for them are Senior SDE, Technical Lead, or Technical Team Lead. They usually hold the capability to guide SDE1 and SDE2 in the right direction, make decisions,  and see a bigger view of the company and its future goals. 

Skills Required

As you gain more experience, you acquire skills in various technologies. 

• Must have software development and programming experience.
• A bachelor’s degree in computer science or related field.
• Ability to understand and contribute to a new or current system’s architecture and design scalable and reliable products.
• Validate and design highly interactive software or web applications in terms of performance, usability, accessibility, design, security, etc.
• Ability to resolve business issues and possess exceptional verbal and communication skills.

Roles and Responsibilities

As we come to SDE 3, you are in charge of almost everything going around with the software. You must know every single detail of it.

• Have complete control over the platforms and modules that SDEs will develop.
• Assist the product in refining the vision and influencing the technology roadmap.  
• Deliver excellent software on time while working in an agile environment.
• Must know and be able to work with a wide range of technologies.
• Focus on optimizing the software, and make sure it is built with best practices and is scalable for future requirements.
• Function with other internal teams to design, prototype, integrate, and implement modules and products.
• Provide the service boundaries and develop the end-to-end architecture of the new product. 

Education and Experience Requirements

To advance to SDE3 roles, a robust educational background combined with practical experience is essential. Typically, candidates for SDE3 positions have attained a bachelor’s degree or higher in computer science, software engineering, or a related field from a reputable institution. However, some candidates may also have gained equivalent knowledge and skills through extensive industry experience or specialized training programs.

In addition to formal education, continuous learning and professional development are crucial for advancement to SDE3 roles. This may involve pursuing advanced degrees, certifications, or specialized training courses to deepen expertise in specific areas relevant to software engineering.

SDE 1 Vs SDE 2 Vs SDE 3: Key Differences

SDE1 is promoted to SDE2 and SDE2 is promoted to SDE3. Thus, as the years of experience grow, the SDE level of an engineer also increases. SDE1 are usually engineers with no experience or up to 2 years of experience. SDE2 is an engineer with 2 to 4 years of experience and to get promoted to SDE3 one needs 4 or more years of experience.

SDE1 are proficient in programming languages, data structures, solving well-defined problems, etc. Whereas, SDE2 are capable of solving the strong problem and due to their experience they have a strong understanding of the development lifecycle, design patterns, testing, and other software development tasks. SDE3 holds expertise in multiple technologies, designing and implementing complex systems, etc. They are good at solving difficult problems and challenges as well as mentoring juniors.

SDE1 hardly are responsible for anything, they are assigned tasks and they perform them without any strict ownership. Their major task is writing documents, writing test cases, implementing small features, etc. SDE2 may be involved in making SDE1 write code for specific tasks, and deliver a complex project SDE2 also designs, develops, test, and deploy features.

SDE3 Lead projects, drive product development, influence the technical direction, and participate in architectural and design decisions. Communication is very important for all three roles. As one’s year of experience increases their salary also increases along with leadership responsibilities. 

SDE Levels Salary Comparison 

In this section, we will discuss how the salaries vary as the SDE role changes. We will also discuss salaries provided by various multinational companies.

SDE 1 Salary

• Average base pay ranges between ₹9LPA –  ₹19LPA
• Additional compensation varies from ₹1LPA –  ₹3LPA

Let us compare salaries at the top companies:

Company	Average Salary
Atlassian	₹38.5LPA
Amazon	₹18.8LPA
Microsoft	₹20.9LPA
Google	₹22.3LPA
Meta	₹28LPA
Uber	₹34LPA
Flipkart	₹20.7LPA

SDE 2 Salary

• Average base pay ranges between ₹11LPA –  ₹56LPA

Let us compare salaries at the top companies:

Company	Average Salary
Atlassian	₹42LPA
Amazon	₹52.3LPA
Microsoft	₹41.6LPA
Google	₹51LPA
Meta	₹61LPA
Uber	₹50.6LPA
Flipkart	₹30.5LPA

SDE 3 Salary

Company	Average Salary
Atlassian	₹38.5LPA
Amazon	₹75.7LPA
Microsoft	₹60LPA
Google	₹61LPA
Meta	₹62LPA
Uber	₹85LPA
Flipkart	₹47.5LPA
OLA	₹45LPA

Company-Specific Eligibility Criteria for SDE 1, SDE 2, and SDE 3 Roles 

SDE terms are very generic terms, different companies have different criteria, especially for SDE2 and SDE3. Additionally, factors such as industry, company size, and geographic location can influence the eligibility requirements for SDE positions.

MAANG, an acronym derived from the most influential tech companies worldwide—Meta (formerly Facebook), Amazon, Apple, Netflix, and Google (Alphabet)—represents a pinnacle of career opportunities. A position at one of these companies offers global recognition, extensive avenues for growth and exposure, lucrative salary packages, and numerous additional benefits. The high standards set by MAANG companies demand exceptional skill levels from their employees.

In addition to MAANG, several other tech companies are also highly regarded, including Uber, Microsoft, Walmart, Ola, Flipkart, Jp Morgan & Co., and more. These companies offer compelling career prospects and are sought after by professionals in the tech industry.

Interview Process Requirements

The interview process at top companies adheres to a rigorous structure, demanding comprehensive preparation from candidates. Typically, it begins with an initial round of online testing. This phase commonly includes 2 to 3 coding questions, assessing problem-solving abilities and coding proficiency. Additionally, candidates encounter questions covering essential computer science topics, such as algorithms, data structures, and system design. Moreover, behavioral and soft skills may be evaluated through situational questions or case studies.

Successful performers in the initial test phase progress to subsequent rounds, which can be conducted either online or in-person, depending on the company’s preference. The number of interview rounds, ranging from 2 to 6, varies based on factors like job role, seniority, and experience level. For instance, entry-level positions typically involve fewer rounds, while higher-level positions may necessitate more extensive evaluation.

Notably, navigating the interview process at MAANG companies is exceptionally challenging and requires thorough preparation. To succeed, candidates must possess both technical and non-technical skills. Equipping oneself with high-quality learning resources, such as coding platforms, online courses, and mock interviews, is essential. Additionally, devising a well-structured interview preparation plan tailored to the specific requirements of MAANG interviews significantly increases one’s chances of success.

How do SDE levels differ across various industries?

Google employs a structured hierarchy of Software Engineer levels, each with distinct responsibilities and expectations. Levels range from 1 to 7 and almost till Level 3 we have SDE 1 engineers categorized. Meta also follows the same pattern. Whereas companies like Amazon or Apple follow the same SDE levels as SDE 1, SDE 2, and SDE 3. 

While the general progression of SDE levels (SDE1, SDE2, SDE3) may be consistent across industries, the specific roles, responsibilities, and expectations at each level may vary based on the industry’s unique requirements and challenges. Additionally, companies may have other engineering roles beyond SDE I, II, and III, such as Principal Engineer or Technical Lead, which represent higher levels of seniority and responsibility.

How to Plan your Journey from SDE 1 to SDE 2, and SDE 3?

Microsoft’s Nate Waddoups aptly summarized the transition from SDE 1 to SDE 3:

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.

SDE 1 to SDE 2:

• Master the Fundamentals: Focus on solidifying your understanding of core programming languages, data structures, and algorithms. Practice problem-solving on platforms like LeetCode or HackerRank.
• Deepen Your Technical Skills: Explore specific technologies relevant to your company’s domain (e.g., web development, cloud computing). Gain practical experience by contributing to open-source projects or building personal side projects.
• Sharpen Your Communication: Effective communication is crucial. Practice explaining technical concepts clearly to both technical and non-technical audiences.
• Become a Team Player: Software development is a collaborative effort. Learn to work effectively in teams, actively contribute to discussions, and provide constructive feedback.

SDE 2 to SDE 3:

• Level Up Your Technical Expertise: Expand your knowledge beyond core programming to include system design, design patterns, and software architecture principles. Understand how different software components interact and how to scale large systems.
• Take Ownership: Transition from implementing tasks to owning them. Start taking initiative, leading smaller projects, and mentoring junior engineers.
• Master Problem-Solving: Focus on solving complex problems, not just coding solutions. Analyze situations, identify root causes, and design efficient, scalable solutions.
• Communication & Influence: Develop strong communication and leadership skills. Clearly communicate complex ideas, influence technical decisions, and inspire your team.

You will acquire technical skills as you work on projects and gain experience but here are a few tips that will not be taught but are very necessary.

Communication Skills

At any stage of the product life cycle, you are not an individual contributor or user of the product. You will always have to work in a team and create a product that can be used by various individuals and can be updated as time passes by.

To do so you need to understand one’s perspective, and proper skills to communicate your ideas. The ability to listen to others, come to a conclusion that is beneficial for the company, and lay out a solution in layman’s terms is very important.

Leadership Skills

With an increase in SDE level, there are more expectations placed on them, including giving design direction, considering future technical directions, and always accepting responsibility. One needs empathy and management skills to be a good leader.

Understanding Business Objectives

Since the SDE3s are at the architectural level, this one is particularly crucial for them. They need to know the overall objectives of the organization and the operations. They must be aware of everything going around in their surroundings, how is the tech team influenced in executing decisions and how can the end product be improved.

Bonus Fact – It is easier to grow gradually from SDE 1 to SDE 2 role but is extremely difficult to grow from SDE 2 to SDE3 and therefore only a few engineers succeed in the same.

How to Become a Software Developer Engineer (SDE) at MAANG Companies?

MAANG companies, along with other tech giants, are among the most well-known in the tech industry and have transformed our way of life. These are mostly product-based companies, and they experience a huge surge in increased job applicants. 

The skills taught by such places are highly valued by top-tier employers across all industries; this means there will always be demand for people with these skills.

Therefore, to become an SDE at MAANG, you need a little extra hard work and proper guidance. There are a few qualities that are necessary to become an SDE at MAANG. You are required to demonstrate problem and coding skills, know the company and its mission, have good communication skills, and have a vision and passion for the company and the role. 

• Data Structures and Algorithms:  You must be proficient in one of the programming languages and have a good understanding of Data Structures and Algorithms. You will be asked to solve DSA problems in the interviews.
• Core CS subjects: Along with DSA you also need to be strong at core subjects of Computer Science such as Operating Systems, Computer Networks, DBMS, etc.
• System Design: System design refers to the designing of large-scale, reliable, and efficient system designs. Candidates are expected to be prepared to demonstrate their proficiency in this area during interviews.
• Open source projects and certifications: Being involved in the open source community can make you stand out from the competition and highlight your skills. Employers can be reassured of your abilities by certifications from classes and competitions.
• Soft skills development: Emphasis on soft skills such as problem-solving, teamwork, and communication.
• Research and Resume Enhancement: Most companies define their work culture, requirements, and well-prepared job descriptions. Make sure to read that thoroughly, apply for appropriate roles, and build a personalized resume for the same.
• Competitive coding: Another way to be recognized at MAANG is through competitive coding.

Check out Scaler’s software development courses, ensuring you’re well-equipped with the necessary skills and knowledge to excel in your interviews and beyond.

Conclusion 

• SDE1, SDE2, and SDE3 are different levels in which engineers are categorized based on their expertise, skills, and experience.
• Freshers or Graduates are usually called SDE1 or Junior Engineers, whereas SDE2 and SDE3 are referred to as Senior Software Development Engineers.
• As the years of experience increase the number of responsibilities also increases on an individual. SDE3 are usually responsible for designing and architecture of the product rather than coding. 
• As the experience and SDE level grows the salary hikes are also good. MAANG companies offer the highest packages along with additional perks. 
• MAANG companies are the dream companies to work with for every engineer. As they receive lot many applications, the best ones are only chosen.
• Their interview process is also quite tough and it qualifies not only technical skills but the overall personality of an individual, their ability to adapt, work in a team, and deliver the best.

Frequently Asked Questions