From $83,000 to $408,000: Report reveals level-wise pay structure of Microsoft engineers | Details here

A job at the tech giant Microsoft is one of the most aspired-after roles among engineers looking for a global career and a dream salary. Leaked documents reveal Microsoft’s salary structure, where entry level roles start at levels 57-59, while Level 70 positions can reach $408,000 annually, with additional stock compensation depending on location according to a report by Business Insider.

Microsoft job levels

Microsoft uses a level system to indicate seniority. Entry-level engineers are usually at levels 57 to 59, while senior engineers start at level 63, and principal engineers at level 65. Higher levels are less common. Partners begin at level 68, and top engineers are at level 70.

Microsoft salary structure

New engineers at Microsoft joining at Level 57 start with a base salary of $83,000. Stock awards add an additional $5,000 to $13,000, but sign-on bonuses are not guaranteed, ranging from $0 to $9,000, the report noted.

Salary increases at higher levels tend to be gradual. Engineers advancing to Level 59 see their base salary rise to $120,800, with cash bonuses ranging from $3,000 to $19,300. Moving up to Level 60, which is one step higher, offers a base pay between $111,000 and $160,000. Cash bonuses can reach up to $21,700, and stock awards also increase $20,000, the report said, citing leaked documents.

Level 70 candidates could earn up to $408,000 annually, based on the location. Their compensation package may include a one-time stock award of up to $1.9 million upon hiring and might also feature an additional signing bonus, although the exact range isn’t provided. Additionally, their future compensation could include an annual stock award worth $1,476,000.

Salary based on location

Microsoft maintains varying salary ranges depending on location. For instance, there is a “main” pay range for employees at the company’s headquarters in Redmond, Washington, and a “high” pay range for workers in higher cost-of-living areas such as San Francisco. Most of Microsoft’s hiring occurs within these regions, the report quoted a person aware of the hiring process.

The report comes at a time when the tech giant hit headlines for cutting jobs amid AI push. In May, Microsoft had a major round of terminations that impacted 6,000 jobs or 3 per cent of its workforce, mostly in product and engineering teams, while sparing customer-facing roles such as sales and marketing.