Definitely relative -- this is a reference to 'most software devs reading this article'. That being said, once you reach a compensation level that lets you cover your expenses, it's wise to start thinking in these terms, even when the relative percentages rise.
Happier workers tend to perform better, which in turn make meritocratic performance bonuses greater, raising the overall compensation of those workers. Enjoyment of one's job and compensation are tied much more closely than some people realize.
Perhaps in relative terms? After living on a grad student's salary for years, it's clear that even a thousand dollars can be rather powerful.