How much do Microsoft engineers earn in the US? Pay levels revealed

Engineers starting at Microsoft on Level 57 receive a base salary of $83,000, while senior roles at Level 70 can command salaries of up to $408,000 annually

Microsoft follows a pay guideline that offers insights into the compensation of its engineering workforce. The framework is part of a closely guarded hiring process, access to which was obtained by Business Insider. Entry-level positions fall between Levels 57 and 59, while senior roles at Level 70 can command salaries of up to $408,000 annually, along with additional stock compensation depending on location, according to a report by Business Insider.

 

Microsoft follows a tiered level system to denote seniority. Entry-level engineers are generally hired at Levels 57 to 59, senior engineers begin at Level 63, and principal engineers are positioned at Level 65. More advanced levels are relatively uncommon. Partners start at Level 68, while the most senior engineers reach Level 70.

 

Microsoft salary structure

Engineers starting at Microsoft on Level 57 receive a base salary of $83,000. Stock awards contribute an extra $5,000 to $13,000, while sign-on bonuses are not assured and may vary between $0 and $9,000, according to the report.

 

Progression through the levels comes with incremental pay rises. Engineers advancing to Level 59 earn a base salary of $120,800, with cash bonuses ranging from $3,000 to $19,300. At Level 60, one step higher, base pay increases to between $111,000 and $160,000. Cash bonuses can reach $21,700, while stock awards also rise to $20,000, the report noted.

 

For those reaching Level 70, annual salaries can climb to $408,000, depending on location. Their compensation package may also include a one-time stock award of up to $1.9 million upon joining, alongside a potential signing bonus, although specific figures are not disclosed. Future earnings may further benefit from an annual stock award valued at $1,476,000.

Salary based on location

Microsoft applies different pay bands according to location. As reported, there is a 'main' pay range for staff at its Redmond, Washington headquarters, and a 'high' pay range for employees in costlier cities such as San Francisco. The majority of Microsoft’s hiring is concentrated in these regions, a person familiar with the company’s recruitment process stated.