The Australian tech sector is experiencing a hiring boom, largely driven by a growing skills shortage and higher staff turnover rates. As a result, salaries have increased and some employers have started offering sign-on bonuses, such as more flexibility and hybrid working.

Those are some of the key findings from salary guides released by recruitment agencies Hays and Robert Half for the 2022/23 financial year.

According to Hays, 96% of IT employers are experiencing a skills shortage, while 81% of IT leaders surveyed by Robert Half said turnover rates have increased at their companies.

To retain staff, employers are willing to offer higher salaries. Hays found 88% of IT employers plan to offer higher-than-planned increases (of 3% or more), while Robert Half found 82% of CIOs are considering increasing tech salaries by 12%.

Hays lists the top five tech jobs in demand in Australia as:

1. Business analysts
2. Cloud engineers
3. Developers
4. Cyber security analysts
5. Data analysts

Here's how salaries for these tech jobs compare in Australia's major cities in 2022.

Sydney

In Sydney, business analysts earn, on average,$130,000 per year, while senior business analysts earn up to$180,000.

Salaries average$160,000 for cloud engineers and$190,000 for cloud architects.

Entry-level salaries for junior developers are between$80,000 and$130,000. Front-end and full-stack developers earn up to$150,000. Mobile app developers, meanwhile, earn up to$200,000 per year.

With the rapid shift to greater digitalisation during the pandemic, cybersecurity specialists are in high demand with salaries around$130,000, while cybersecurity managers pull in up to$220,000.

Data analysts earn, on average,$105,000. For senior data analysts,$105,000 is a typical starting salary with more experienced senior analysts earning up to$145,000.

Melbourne

Business analysts in Melbourne are on par with Sydney at$130,000, although senior business analysts earn about$10,000 less than their Sydney counterparts.

Cloud engineers earn an average of$170,000 and cloud architects$190,000.

Junior developers in Melbourne have a starting salary of$80,000, while senior developers, including automation developers and senior front-end developers, earn up to$160,000.

Cybersecurity analysts earn, on average,$145,000. The top earners are cybersecurity architects and cybersecurity managers who command up to$250,000.

Data analysts in Melbourne earn the same as those in Sydney -$105,000. Data architects earn up to$220,000 and data scientists earn as much as$250,000.

Brisbane, Gold Coast and Sunshine Coast

Moving up to Queensland, tech salaries are slightly lower than Sydney and Melbourne. Business analysts average$110,000, while the highest salary for senior business analysts is$140,000 - or$40,000 less than Sydney.

Cloud engineers earn up to$145,000 and cloud architects up to$200,000 per year.

Developers earn starting salaries between$90,000 and$110,000. Full-stack developers and automation engineers both average$130,000 per year.

Meanwhile, cybersecurity analysts earn between$90,000 and$140,000. Cybersecurity managers earn the most in this category, at$210,000.

Data analysts earn an average of$100,000, while top salaries for both data scientists and data architects come in at$180,000.

Adelaide

Average salaries for business analysts in Adelaide are$105,000 for junior analysts and$125,000 for senior analysts. Cloud engineers earn up to$140,000. Cloud architects earn up to$200,000.

UX/UI developers average around$95,000, closely followed by Java and .Net developers at$100,000. Senior developers earn up to$130,000 per year.

Top salaries for cybersecurity analysts, engineers and managers in Adelaide are the same as those in south-east Queensland -$140,000,$150,000, and$210,000, respectively.

Data analysts earn between$80,000 and$120,000, while senior data analysts and business intelligence developers earn about$10,000 more.

Perth

In Perth, business analysts' salaries average$125,000, while senior business analysts earn the same as their Sydney counterparts, at$150,000.

Cloud engineers average$145,000 per year, devops engineers$150,000, and cloud architects$180,000.

Starting salaries for developers are between$80,000 and$120,000. Full-stack developers, senior front-end developers and mobile app developers all earn up to$160,000.

Cybersecurity analysts in Perth earn up to$135,000 - the lowest of the five major capitals. Cybersecurity engineers are on par with Brisbane and Adelaide, earning up to$150,000 per year.

Data analysts average between$102,000 and$130,000, depending on experience.

The top-paying leadership roles in IT

Unsurprisingly, Sydney and Melbourne pay the highest salaries for senior IT positions. Here's what IT executives in these two cities earn:

• CIO: up to$375,000
• CISO: up to$360,000
• CTO: up to$370,000 in Melbourne and$357,000 in Sydney
• IT manager: up to$220,000

Employers know there's an IT skills shortage, so they're willing to pay competitive salaries to keep good staff. Furthermore, two-thirds are considering incentives, such as signing bonuses, to attract new talent.

Right now, these are golden days for skilled IT professionals, with the market stacked in their favour when it comes to salary negotiations.