Microsoft's secret salary ranges, detailed by level, exposed in a recent leak

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Microsoft has revealed its detailed compensation structure for new technical hires in the United States, as updated in May 2025. The structure includes base salaries, on-hire stock awards, signing bonuses, and annual bonuses.

The entry-level for engineers is set at a modest $42,500, without any sign-on bonuses or assured stock grants. As an engineer climbs the corporate ladder, the compensation becomes increasingly attractive. An entry-level engineer can earn a salary up to $124,600, while a senior engineer (Level 63) can see salaries up to $237,600 with stock awards reaching $220,000.

The levels exhibit variation depending on the specific role and geographical location. For instance, specialists in areas such as SharePoint and IT consulting typically receive higher salaries compared to other specialty roles. In Hamburg, SharePoint specialists earn around €60,500 and IT consultants about €62,700 annually, while general Microsoft specialists earn approximately €57,500. Leadership positions and project managers earn significantly more, with leadership roles averaging over €100,000 and IT project managers about €82,700 per year.

The levels within Microsoft's unique system signify an employee's seniority. Level 64 base salary ranges from $125,000 to $187,700, while Level 63 ranges from $113,900 to $171,500. The on-hire stock award defaults to $24,000 for Level 64 but can be approved up to $250,000, and $17,000 for Level 63, which can be approved up to $200,000. The annual stock award range for Level 62 is $0 to $32,000, for Level 63 is $0 to $44,000, and for Level 64 is $0 to $60,000.

In 2022, Microsoft took proactive measures to address internal discontent related to remuneration, especially in comparison with rivals. The company green-lighted 67 hires with generous stock grants to counteract Amazon's allure. However, as the economy hit rough waters, the company froze base salary increments and trimmed budgets for bonuses and stock rewards.

The leaked guidelines suggest a diverse pay structure within Microsoft, with a sumptuous package at the pinnacle comprising a $361,500 salary, bolstered by a staggering $1.2 million in hiring perks and approximately $1 million in yearly stock rewards. The zenith, level 70, denotes the "Distinguished Engineer". At the highest end, a Level 70 distinguished engineer can receive a salary of up to $408,000 with an initial stock award of up to $1.9 million.

The "senior" benchmark begins at level 63, "principal" emerges at 65, and "partner" reigns starting from 68. While not all roles touch the revered level 70, an engineering genius who does is christened a "Distinguished Engineer". The zenith, level 80, denotes the "technical partner" - generally viewed as one of the company's top echelons.

Microsoft's compensation structure varies by location, with higher ranges for cities like San Francisco. The levels, their associated salaries, and stock awards provide a comprehensive overview of Microsoft's compensation structure, offering insight into the company's approach to employee remuneration.