Microsoft, one of the world’s most influential technology companies, employs over 220,000 people globally. However, recent layoffs earlier this year have reduced that number slightly, with thousands of employees affected. For those still working at Microsoft—or considering joining—the question of how much a developer or manager earns at such a prestigious company is always intriguing. Users might also wonder how well a Windows developer is compensated in today’s market.
What do Microsoft developers earn?
Business Insider recently obtained a leaked internal Microsoft document revealing salary data from 850 employees across various levels. Microsoft’s compensation structure consists of four components:
- Base annual salary
- Cash bonus
- Performance-based percentage bonus
- Stock awards, which fluctuate based on the company’s valuation
Here’s how developer salaries break down by level:
- Level 59: Base $120,800–$124,000 | Cash $3,000–$19,300 | Bonus 8–14% | Stock $7,000–$19,300
- Level 60: Base $111,000–$160,000 | Cash $9,300–$21,700 | Bonus 8–16% | Stock $7,200–$20,000
- Level 61: Base $128,000–$170,000 | Cash $11,300–$27,000 | Bonus 8–20% | Stock $10,800–$36,000
- Level 62: Base $139,200–$191,000 | Cash $11,000–$30,800 | Bonus 8–20% | Stock $8,000–$45,000
- Level 63: Base $153,500–$224,800 | Cash $8,000–$50,000 | Bonus 10–25% | Stock $22,000–$64,000
- Level 64: Base $162,700–$230,600 | Cash $11,000–$50,000 | Bonus 10–140% | Stock $38,000–$80,000
- Level 65: Base $188,000–$230,000 | Cash $32,700–$61,700 | Bonus 16–28% | Stock $39,000–$91,000
- Level 66: Base $217,600–$269,000 | Cash $59,000–$60,700 | Bonus 20–120% | Stock $78,000–$140,000
- Level 67: Base $248,000–$250,000 | Cash $70,000–$82,000 | Bonus 28–34% | Stock $145,000–$252,000
With bonuses and stock awards, a top-level Microsoft developer can earn between $500,000 and $600,000 annually. While this dwarfs the U.S. average developer salary of around $120,000, such high earnings are reserved for a small percentage of the workforce. Pay also varies by department—developers in Experiences & Devices earn the least, Cloud & AI staff earn more, and Xbox and Commerce teams receive the highest compensation.
Executive earnings put this into perspective. Phil Spencer, head of Xbox, reportedly earns $10 million annually—before stock awards. Meanwhile, CEO Satya Nadella’s base salary is $2.5 million, but his total compensation reaches an astonishing $79 million per year. In other words, a top Microsoft engineer’s lifetime earnings may equal just a few months of Nadella’s income.
