Microsoft stands as one of the most powerful tech giants in the world, employing over 220,000 people worldwide. This figure has dipped slightly due to recent layoffs that saw thousands of employees leave the company. But when it comes to those still at Microsoft—or those aspiring to join—one question always arises: How much do Microsoft employees, especially developers, actually make?
The truth about Microsoft developer pay
A leaked internal document, obtained by Business Insider, provides a rare glimpse into salaries at the company, based on anonymous reports from 850 employees. Compensation is a mix of:
-
Base salary (annual pay)
-
Cash bonuses
-
Performance-based percentage bonuses
-
Stock awards, which depend on Microsoft’s stock performance
Here’s a level-by-level snapshot of what developers earn:
-
59: $120,800–$124,000 base + $3,000–$19,300 cash + 8–14% bonus + $7,000–$19,300 stock
-
60: $111,000–$160,000 base + $9,300–$21,700 cash + 8–16% bonus + $7,200–$20,000 stock
-
61: $128,000–$170,000 base + $11,300–$27,000 cash + 8–20% bonus + $10,800–$36,000 stock
-
62: $139,200–$191,000 base + $11,000–$30,800 cash + 8–20% bonus + $8,000–$45,000 stock
-
63: $153,500–$224,800 base + $8,000–$50,000 cash + 10–25% bonus + $22,000–$64,000 stock
-
64: $162,700–$230,600 base + $11,000–$50,000 cash + 10–140% bonus + $38,000–$80,000 stock
-
65: $188,000–$230,000 base + $32,700–$61,700 cash + 16–28% bonus + $39,000–$91,000 stock
-
66: $217,600–$269,000 base + $59,000–$60,700 cash + 20–120% bonus + $78,000–$140,000 stock
-
67: $248,000–$250,000 base + $70,000–$82,000 cash + 28–34% bonus + $145,000–$252,000 stock
At the top end, Microsoft developers can earn half a million dollars or more each year, a figure far beyond the $120,000 U.S. average. However, these are elite-level positions. Pay varies by team as well—Experiences & Devices offers the lowest rates, Cloud & AI comes in higher, and Xbox and Commerce lead the pack.
Executives make developer salaries look modest. Phil Spencer, who leads the Xbox division, reportedly earns $10 million annually (before stock awards), while CEO Satya Nadella’s compensation soars to $79 million annually. To put that in perspective, a top Microsoft engineer might earn in an entire career what Nadella makes in a single quarter.