The 9% average salary increase from 2023 to 2024 was the largest for life sciences professionals since 2021. Several factors could be behind the spike, including companies providing higher pay because bonuses and stock compensation went down.
Average salaries for full-time life sciences employees grew 9% from 2023 to 2024, more than quadrupling the previous year’s growth and topping the past five years’ increases, according to the BioSpace 2025 Life Sciences Salary Report. The spike was surprising considering job market conditions, according to BioSpace Vice President of Marketing Chantal Dresner, who’s overseen the report since 2021.
“Knowing that job mobility has slowed and employers have more control over who they hire given the availability of talent right now, we expected to see only modest salary growth, if any,” Dresner said. “I think this level of salary growth is indicative that employers are willing to pay when candidates meet their exact requirements, particularly because they are being highly selective and intentional with their growth.”
As outlined in the salary report, additional reasons for the increased average pay include:
- Higher salaries were paid because bonuses and stock compensation decreased.
- Last year, 71% of full-time employed respondents reported receiving a bonus. This year, 69% reported getting one. The average value of bonuses to full-time employees declined 9% from 2023 to 2024.
- Last year, 36% reported receiving compensation in the form of equity. This year, that dropped to 30%. The average value of reported equity dropped significantly, from $86,376 to $60,776.
- Fewer junior-level professionals were hired and/or employed in 2024 compared to 2023, and with fewer people at that level participating in the survey, average pay skewed higher.
- Higher salaries were paid because employers were very selective about the skill sets they hired. Increased specializations can command higher pay.
For those that reported a salary increase, 61% of respondents indicated the increase was due to a merit-based raise.
Regarding the compensation itself, the top three highest average salaries in 2024 by BioSpace Hotbed were $184,526 in BioForest (Oregon and Washington); $180,564 in Biotech Bay (San Francisco and Northern California); and $172,575 in Biotech Beach (San Diego and Southern California). Genetown, a major biotech hub that comprises Boston, Cambridge and Massachusetts, ranked No. 6 out of the nine Hotbeds. Its average salary was $156,700.
The report also examines pay inequities, including the gender pay gap and racial pay gaps. Regarding the gender pay gap, it remained unchanged from the 2024 salary report, with women’s total earnings at 88% of what men earn. However, that was higher than Pew Research Center’s findings for women overall. In 2024, according to Pew, women earned an average of 85% of what men earned.
Not Everyone Is Happy With Their Pay
Although average salaries increased from 2023 to 2024, some life sciences professionals criticized their pay in the BioSpace 2025 U.S. Life Sciences Employment Outlook report. That report’s respondents were surveyed late last year.
“Compensation and benefits are not keeping up,” one commented.
Another noted, “Pay and benefits are generally bad especially for new grads.”
In a pointed comment, a respondent wrote, “Industry CEOs are so concerned about the next quarter and wanting to show that they made a higher profit from the previous quarter. Little do they realize that those numbers are so far removed from the salaries in their employees pockets. It would do them more good to focus on increasing wages for their employees, or hiring qualified employees at adequate salaries, instead of those projections. The employees are the wheels that keep their company profits high.”
Looking Ahead: Will Increases Continue?
Whether average salaries will grow from 2024 to 2025 remains to be seen, although the employment outlook report detailed some positive signs for the future. For example, 47% of employer respondents said they expected that their budget for employee salary changes this year will remain the same, and 35% said they would increase.
In addition, 46% of surveyed employers indicated they did not have concerns about their company’s stability or performance in 2025. That said, it’s worth noting that 54% said they were somewhat concerned and 29% very concerned about the economic climate (funding).
Still, Dresner expects salary growth from 2024 to 2025, although she noted that she’d be surprised if it’s at the same 9% rate reported for 2023 to 2024.
“It will be dependent on the macro environment and how much funding is available for companies to grow their teams,” she said. “I expect that most organizations will continue to remain agile and operate as leanly as possible—that includes continuing to be selective with their workforce growth.”
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