The common idea is that the higher your academic qualification, the more likely you are to earn more. While this is generally quite true, can you max out your salary with a PhD? Does a PhD increase salary?
A PhD does increase salary. The Bureau of Labor Statistics (BLS) reports that PhD holders typically earn a median salary of around $100,000 annually, while someone with a bachelor’s degree might only bring in $67,000.
In this article, we explore the question does a PhD increase salary, and if yes, by how much. We also look into some of the jobs that require a PhD that pays best, and factors that determine how much income increase you may get from your PhD.
Does A PhD Increase Salary Much?
Many people pursue PhDs for non-monetary reasons, but in the end, we still need to make ends meet. Will a PhD help you to earn more?
A PhD can definitely increase your salary, but how much depends on several factors like your field, occupation, and whether you work in or outside of academia.
PhD graduates often see higher earnings compared to those with just a bachelor’s or master’s degree.
The Bureau of Labor Statistics (BLS) reports that PhD holders typically earn a median salary of around $100,000 annually, while someone with a bachelor’s degree might only bring in $67,000.
So, in certain fields, you’re looking at a 30-40% salary increase, which can add up to hundreds of thousands in lifetime earnings.
According to Bureau of Labor Statistics (BLS) 2022 data, the median weekly earnings for individuals with a doctoral degree were $2,083, which equates to an annual salary of around $108,000.
This is significantly higher than those with a bachelor’s degree, who earned a median of $1,432 weekly (around $74,500 annually).
People with PhDs, especially in STEM, tend to have higher earning potential than those in the humanities or social sciences. A PhD in engineering can lead to jobs with salaries well above $120,000, whereas a PhD in history may not provide that kind of increase.
The fact that a PhD usually requires you to complete original research adds to your credibility in specialized positions.
However, the increase isn’t automatic. Many PhD students spend years in postdoc positions, earning much less than their potential, while trying to secure a stable job.
PhDs also offer the opportunity to pursue jobs outside of academia. Doctoral degree holders in business or project management often see higher salaries.
While earning a PhD is a long process and requires a lot of commitment and financial help, it generally pays off in the long run if you choose the right field.
What Are The Average Salary Of PhDs?
The average salary of PhDs varies significantly based on the field of study, occupation, and whether you work in academia or outside.
The Bureau of Labor Statistics reports that PhD holders typically earn a median salary of about $100,000.
This is a noticeable jump compared to bachelor’s degree holders, who average around $67,000.
This increase in earnings reflects the higher level of education and expertise that comes with earning a doctorate.
STEM: PhDs in fields like engineering, computer science, and physical sciences—tend to have the highest salaries. For instance, engineering PhDs can earn over $120,000, especially when working in industry.
Life or Social Sciences: People with PhDs in life sciences or social sciences, though, tend to earn lower salaries. A PhD in psychology might bring in around $80,000, while humanities fields like history or literature may earn closer to $60,000.
So, your field of study heavily impacts your earning potential.
For many PhD students, especially those pursuing academic careers, salaries may not increase significantly until after they complete postdoc positions, which tend to pay less than $60,000.
The PhD experience in academia can be financially challenging during these years, but there’s potential for higher earnings down the line.
In industry, PhD jobs in business, project management, or research and development usually offer higher salaries.
PhD holders working in industries such as finance or technology can see even bigger jumps in salary compared to their counterparts in academia.
What Factors Influence A PhD Holder’s Earnings Increase?
When it comes to a PhD holder’s earnings increase, there are several key factors that determine how much you can expect to earn over your career.
PhDs generally increase your salary potential, but how much depends on a variety of influences.
Field of Study
Your field of study is one of the biggest factors affecting your salary as a PhD holder. People with PhDs in STEM fields—science, technology, engineering, and math—usually earn much higher salaries compared to those in the humanities or social sciences.
A PhD in engineering or computer science can earn you over $120,000 a year, particularly if you work outside of academia.
Someone with a doctorate in philosophy, history, or literature may see a more modest increase in earnings. Many PhD graduates in these fields earn closer to $60,000, even with the same level of education.
The field you choose also impacts your job prospects. There are more positions in industry for STEM PhD holders, especially in growing fields like:
- artificial intelligence,
- biotechnology, and
- data science.
Outside of academia, STEM PhDs often have more opportunities to pursue higher-paying roles in research and development, project management, and leadership positions.
Industry vs. Academia
Whether you stay in academia or move to industry is another major factor that affects your salary. Academia tends to offer lower salaries compared to industry, especially at the postdoc level.
Many PhD graduates start their careers as postdocs, where salaries can be as low as $50,000 a year, and it may take years before you land a tenure-track position. Even as a professor, your earnings might not match those of PhD holders in industry.
If you pursue a PhD, your decision to stay in academia or move into the private sector can make a huge difference in your lifetime earnings.
PhDs working in industries often see six-figure salaries much sooner than their counterparts in academic positions. These industrial positions include:
- finance,
- pharmaceuticals, and
- technology.
These jobs also come with benefits like bonuses and stock options that academia rarely offers.
Geographical Location
Where you live and work also plays a significant role in determining your earnings as a PhD holder. In countries like the United States, the Bureau of Labor Statistics (BLS) reports that PhD holders earn a median salary of $100,000. But this can vary depending on your region.
Cities with high costs of living, such as San Francisco, New York, and Boston, often offer higher salaries to compensate.
In contrast, smaller towns or regions with a lower cost of living may offer fewer opportunities and lower salaries for PhD graduates.
Location also affects job prospects for PhDs. For example, tech hubs like Silicon Valley, Seattle, and Austin are more likely to offer lucrative positions for PhDs in engineering and computer science.
If you are looking for government or policy-focused roles for PhDs in social sciences, you may find the well paying jobs clustered in Washington D.C. or major European capitals.
Experience and Soft Skills
Experience matters just as much as your level of education. The longer you’ve been working in your field, the more valuable you become to employers.
Many PhD graduates start with lower-paying positions like postdocs or research assistants, but as you gain experience, your salary tends to increase. After 5-10 years in a job, many PhDs see a significant jump in earnings.
Soft skills also play a critical role in your earning potential. PhDs are often trained to think critically and solve complex problems, but communication, teamwork, and leadership skills can set you apart in the workplace.
Being able to manage a team or handle project management tasks will make you more employable, and employers tend to reward these skills with higher salaries.
Networking and Reputation
Your professional network can have a big impact on your career and salary. Many PhD students don’t realize how important networking is to getting a job and increasing your salary.
The people you meet during your doctoral program—professors, advisors, colleagues, and even fellow students—can help you find jobs, write recommendations, and introduce you to key players in your field.
Reputation also matters. If you publish widely, present at major conferences, and collaborate on notable research projects, you can build a name for yourself that can lead to better job offers and higher salaries.
Having a strong network and a good reputation can result in higher-paying positions, both inside and outside academia.
What PhD Jobs Pay The Best?
When it comes to PhD jobs that pay the best, the answer largely depends on your field of study. Certain occupations offer PhDs significantly higher salaries, with some PhD graduates earning well into six figures.
While PhDs can help increase your salary, the top-paying fields often fall within specific industries, especially those focused on technology, business, and healthcare. Here’s a couple PhD jobs that pays very well:
PhD in Engineering
PhD holders in engineering consistently rank among the highest earners. Whether it’s electrical, mechanical, or chemical engineering, these degrees often lead to high-paying jobs in both academia and industry.
PhD salaries in this field can reach upwards of $120,000, depending on the specific branch of engineering and the industry.
Someone with a doctorate in electrical engineering may find roles in high-tech firms like Apple or Google, where salaries and bonuses can exceed $150,000 annually.
The earning potential in this field is much higher than those with just a master’s or bachelor’s degree, thanks to the technical expertise and research experience that PhD graduates bring.
PhD in Computer Science
If you’re looking to pursue a PhD that guarantees prestige and significant salary increases, computer science is a top contender.
The demand for advanced expertise in technology continues to skyrocket, like:
- artificial intelligence,
- machine learning, or
- data science.
PhD holders in computer science are often offered positions in major tech companies like Amazon, Facebook, and Microsoft, with starting salaries often exceeding $130,000.
Some roles can even pay close to $200,000, depending on the individual’s specialization and experience.
The combination of technical skills and cutting-edge research gives these PhDs a significant advantage in the job market.
PhD in Economics
Economics is another field where PhDs tend to earn significantly more than their counterparts with lower levels of education. PhD graduates in economics often find high-paying roles in government agencies, financial institutions, or think tanks.
You may see salaries starting at around $110,000, with senior-level economists earning much more, especially if they land positions with organizations like:
- the World Bank,
- the Federal Reserve, or
- large multinational corporations.
Economics PhDs are highly valued for their ability to perform detailed data analysis and economic modeling, which directly impacts organizational strategy and financial decisions.
PhD in Biomedical Sciences
PhDs in biomedical sciences are highly sought after in both academic and industry settings, particularly in the pharmaceutical and biotechnology sectors.
If you choose to work in private industry, you can expect to earn well above $100,000, especially if you’re involved in drug development or clinical research.
Positions such as senior research scientists, directors of research, or roles in regulatory affairs often pay PhD holders salaries ranging from $120,000 to $160,000. Many of these roles are outside of academia, where earning potential is significantly higher.
PhD in Business Administration (DBA)
For those with a PhD in business administration or a Doctorate in Business Administration (DBA), the earning potential is high, especially if you secure a leadership position in the corporate world.
PhD holders in this field often end up in roles such as:
- Chief Executive Officers (CEOs),
- Chief Financial Officers (CFOs), or
- top-level consultants.
Many of these positions pay well into six figures, with salaries ranging from $150,000 to $200,000 or more.
Unlike many other PhD jobs, those with a DBA often have the opportunity to pursue high-level management positions that don’t require as much technical expertise but rely heavily on leadership, decision-making, and strategy skills.
Get A PhD – It Increases Your Salary
Back to the question: does a PhD increase salary? Yes. It can significantly increase your salary, particularly in high-demand fields like engineering, computer science, and business.
While the amount of the salary increase depends on factors such as field, industry, and location, the specialized knowledge and expertise gained through a doctoral degree often result in a considerable boost in earnings.
This makes your PhD worth it, at least financially. Having a PhD also at times can bring you some unique perks. Perhaps this video can explain things better:
Does A PhD Increase Salary?
Yes. The Bureau of Labor Statistics (BLS) reports that PhD holders typically earn a median salary of around $100,000 annually, while someone with a bachelor’s degree might only bring in $67,000.
What Factors Influence PhDs Salary Increase?
How much your salary can increase with a PhD may depend on factors such as: field of study, academic or industry, networking, social and soft skills, and more.
What PhD Pays The Best?
Generally, PhD in STEM pays the best, particularly if you enter industry. There are PhDs in business and finance that also earn excellent salary as well.
