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Principal Engineering Manager Salary in the United States

How much does a Principal Engineering Manager make in the United States?

As of September 01, 2026, the average salary for a Principal Engineering Manager in the United States is $179,787 per year, which breaks down to an hourly rate of $86.

However, a Principal Engineering Manager's salary can vary significantly. Here’s a look at the typical salary range:

  • Top Earners (90th percentile): $209,408
  • Majority Range (25th-75th percentile): $156,579 to $195,292
  • Entry-Level (10th percentile): $135,449
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Principal Engineering Manager Salaries

A Principal Engineering Manager's salary isn't a fixed number. It's shaped by several important factors. Below, we'll explore how your years of experience, geographic location, education and company size can directly affect your earning potential.

How Experience Level Affects Principal Engineering Manager Salaries?

Experience is a primary driver of a Principal Engineering Manager's salary. As you build your skills and take on more complex tasks, your compensation generally increases. Here's how the average salary grows at different career stages:

  • Entry-Level (less than 1 year): $168,183
  • Early Career (1-2 years): $170,117
  • Mid-Level (2-4 years): $173,340
  • Senior-Level (5-8 years): $176,564
  • Expert (over 8 years): $181,878
Levels Salary
Entry Level Principal Engineering Manager$168,183
Intermediate Level Principal Engineering Manager$170,117
Senior Level Principal Engineering Manager$173,340
Specialist Level Principal Engineering Manager$176,564
Expert Level Principal Engineering Manager$181,878
View as Graph

How Do Principal Engineering Manager Salaries Vary from State to State?

Your salary can change significantly depending on where you work. States with a higher cost of living and strong industrial sectors often pay more to attract Principal Engineering Managers. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $199,060.
  • California: $198,305.
  • Massachusetts: $195,662.

Top Paying Cities for Principal Engineering Managers

Salaries can also vary between different cities. Major metropolitan areas or cities with a high demand for technicians often offer more competitive pay. Here are a few examples of average annual salaries in different U.S. cities:

  • San Jose: $226,765
  • San Francisco: $224,282
  • Oakland: $219,556

What Skills Can Increase a Principal Engineering Manager's Salary?

Demanded Skills for the Role:

  • Leadership (Mentioned in 25.64% Job Postings): Knowledge of and ability to employ effective strategies that motivate and guide other members within our business to achieve optimum results.
  • Program Design (Mentioned in 1.03% Job Postings): Program design includes planning for the learning environment and experience. through conceptualizing change and selecting program activities to bring about desired results.
  • Microsoft Office (Mentioned in 0.51% Job Postings): Microsoft Office is a suite of desktop productivity applications that is designed by Microsoft for business use. You can create documents containing text and images, work with data in spreadsheets and databases, create presentations and posters.
Skills Demand Percentage
Leadership 25.64%
Program Design 1.03%
Microsoft Office 0.51%
See More Skills

What skills can make your compensation higher?

Mastering certain specialized skills can lead to a significant increase in pay. Here are examples of skills and the potential impact they can have on a Principal Engineering Manager's salary.

  • Nursing Practice: Can increase your salary by up to 13%.
  • Budgeting: Can increase your salary by up to 12%.
  • Verbal Communication: Can increase your salary by up to 11%.
Skill Salary Salary % Increase
Nursing Practice $203,159
13%
Budgeting $201,361
12%
Verbal Communication $199,564
11%
Get Latest Data

Principal Engineering Manager Salary by Industry: Top Paying Sectors

For Principal Engineering Manager roles, the industry you choose can impact your earning potential by as much as 40% (the gap between the highest and lowest paying industries). Data shows that the highest-paying industry, Edu., Gov't. & Nonprofit, offers compensation 20% above the average. Conversely, Principal Engineering Manager positions in Business Services typically offer lower base pay, as this sector often view Principal Engineering Manager as a support function rather than a direct revenue driver.

The top paying industry for a Principal Engineering Manager

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Edu., Gov't. & Nonprofit$215,744$104.020%

How Education impacts a Principal Engineering Manager's Salary?

Your level of education can impact your salary potential. While many Principal Engineering Managers enter the field with a Master's Degree or MBA degree, higher education can lead to more specialized and higher-paying roles.

According to our 100% employer-reported salary data, the median salary for a Principal Engineering Manager with a Master's Degree or MBA is between $182,609 and $216,498).

Principal Engineering Manager Salaries by Degree Level

Typical Education for Principal Engineering Manager
Degree Level % of user with this level of education
No Diploma 4.0%
High School 4.0%
Associates 12.0%
Bachelors 20.0%
Masters 16.0%
Doctorate 48.0%
View as Graph

Principal Engineering Manager Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Principal Engineering Manager's annual salary breaks down can help with budgeting. Below, you can see the average hourly rate, weekly pay, and monthly pay for this role. Use the buttons to switch between different pay periods.

Last Updated on September 01, 2026
$156,579
Average $179,787/year
$195,292
$13,048
Average $14,982/month
$16,274
$3,011
Average $3,457/week
$3,756
$75
Average $86/hour
$94
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $195,292 $16,274 $3,756 $94
Average $179,787 $14,982 $3,457 $86
25th Percentile $156,579 $13,048 $3,011 $75

Most common benefits for Principal Engineering Manager

  • Social Security
  • 401 (k)
  • Disability
  • Healthcare
  • Pension
  • Time Off (days)

Common company salaries for Principal Engineering Manager

Here are companies hiring for Principal Engineering Manager and their salaries, click below for more details.

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FAQ about Principal Engineering Manager

1. What industry pays the highest salary for Principal Engineering Manager?

The Edu., Gov't. & Nonprofit industry offers the highest average compensation for Principal Engineering Manager roles, with salaries approximately 20% above the market median.

Where Does Our Salary Data Come From?

Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.

We offer detailed salary information across multiple percentiles for your reference. (Click here to learn Why the Salary Midpoint Formula Is Crucial for Achieving Pay Equity.)

With the most extensive online, real-time compensation data available, Salary.com helps you pinpoint your exact pay target.

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