Have you ever wondered how much do Microsoft engineers earn? The company that recently laid off over 9,000 employees across its global offices offers highly competitive salaries for its engineers, regardless of the AI boom in the industry. A new report has revealed how much do engineers earn at Microsoft, across all tiers and levels.
The data highlights a clear path of career growth, showcasing how the tech giant’s pay scale rewards experience and expertise, with top-level engineers earning well into the six-digit figures, along with bonuses and perks.
Microsoft’s compensation for engineers
The compensation model is organised by a level system at Microsoft, with entry-level engineers typically starting between Level 57 and Level 59.
A Level 57 engineer, for instance, begins with a base salary of around $83,000, accompanied by potential stock awards ranging from $5,000 to $13,000. While Microsoft doesn’t guarantee sign-on bonuses, they can add up to an extra $9,000 to the initial package. As these engineers gain experience and move up, their compensation sees a steady increase.
A Level 59 engineer can expect their base salary to climb to approximately $120,800, with cash bonuses and stock awards also increasing significantly.
The most substantial salaries, however, are reserved for the company’s most senior talent. The report highlights that engineers at Level 70, which is the highest tier, can command an annual salary of up to $408,000. In addition to this base pay, their total compensation can be further boosted by substantial one-time stock awards upon hiring, potentially reaching up to $1.9 million. It is said that Level 70 engineers may also be eligible for an annual stock award of up to $1.47 million.
This shows Microsoft’s commitment to retaining and rewarding its most valued technical experts, despite laying off employees from other divisions in favour of AI tools.
Geographic location plays a key role in determining salary pay
At Microsoft, skill and seniority aren’t the only factors deciding the salary figures of top engineers. Based on the report, it is said that geographical location plays a key role in determining the final pay scale. The salary ranges revealed here represent a high pay bracket, typically for areas with a higher cost of living, like San Francisco. This stands in contrast to the main pay range for Microsoft’s headquarters in Redmond, Washington, where the salaries are considerably lower.