A compensation chart showing Microsoft’s engineering pay bands for 2025 has been leaked online, revealing how software engineers can accumulate long-term wealth by staying at the company. According to the data, engineers who remain with Microsoft for over two decades can earn a base compensation of over $2.7 million annually, with a projected retirement net worth of $13 million after 30 years.
The chart, shared by tech insider Deedy Das, outlines total compensation for engineers from Level 57 to Level 70. It includes base salary, annual stock grants, and bonuses, showing how pay grows with experience and seniority.
At Level 57, which typically includes engineers with 0–2 years of experience, the total package is $186,000. This consists of a base salary of $81,000, $138,000 in stock, and a $10,000 bonus. At the highest tier, Level 70, the annual compensation climbs to $2.7 million—driven largely by $1.5 million in stock and $1.1 million in base pay.
Stock compensation plays a growing role as engineers move up the ladder. From Level 63 onward, equity starts to exceed base salary, forming the majority of total earnings at the top levels.
The chart also includes a modeled 30-year wealth journey. With a 10% annual investment return and 30% savings rate, a Microsoft engineer moving steadily from L57 to L70 could retire with $13 million in investments. The total gross income over that period would be $23.1 million, with investment gains alone contributing $8.8 million. The model assumes consistent tenure and performance, but no executive-level transitions.
While the highest levels aren’t guaranteed, the chart points to a broader takeaway: staying in one company long enough can offer outcomes that rival aggressive career moves. Many engineers leave before they fully benefit from stock vesting or compounding gains. For those who remain, the payoff may be less about title jumps and more about time.
Here's a detailed analysisLevel 57 – Entry Level (New Grad)
• Base Salary: $94,000 – $123,000
• Signing Bonus: $10,000 – $30,000
• On-Hire Stock Award: $50,000 – $150,000
• Annual Stock Grant: $25,000 – $80,000
• Typical Role: Software Engineer I
Level 58 – Early Career
• Base Salary: $110,000 – $140,000
• Signing Bonus: $15,000 – $40,000
• On-Hire Stock Award: $80,000 – $200,000
• Annual Stock Grant: $40,000 – $110,000
• Typical Role: Software Engineer II
Level 59 – Early Career (Pre-Senior)
• Base Salary: $121,000 – $150,000
• Signing Bonus: $15,000 – $50,000
• On-Hire Stock Award: $100,000 – $250,000
• Annual Stock Grant: $60,000 – $140,000
• Typical Role: Software Engineer II / promotion candidate for Level 60
Level 60 – Mid-Level Engineer
• Base Salary: $130,000 – $160,000
• Signing Bonus: $20,000 – $60,000
• On-Hire Stock Award: $120,000 – $300,000
• Annual Stock Grant: $80,000 – $160,000
• Typical Role: Software Engineer
Level 61 – Experienced Mid-Level
• Base Salary: $138,000 – $170,000
• Signing Bonus: $25,000 – $65,000
• On-Hire Stock Award: $150,000 – $350,000
• Annual Stock Grant: $100,000 – $180,000
• Typical Role: Software Engineer / Engineering Lead
Level 62 – Senior Engineer
• Base Salary: $145,000 – $185,000
• Signing Bonus: $30,000 – $75,000
• On-Hire Stock Award: $180,000 – $400,000
• Annual Stock Grant: $120,000 – $220,000
• Typical Role: Software Engineer / Senior
Level 63 – Senior Engineer II (entry to true senior band)
• Base Salary: $150,000 – $200,000
• Signing Bonus: $30,000 – $80,000
• On-Hire Stock Award: $200,000 – $500,000
• Annual Stock Grant: $140,000 – $260,000
• Typical Role: Senior Software Engineer / Architect
Level 64 – Senior Engineer III / Staff Engineer
• Base Salary: $160,000 – $220,000
• Signing Bonus: $35,000 – $90,000
• On-Hire Stock Award: $250,000 – $600,000
• Annual Stock Grant: $160,000 – $300,000
• Typical Role: Lead Engineer / Staff Engineer
Level 65 – Principal Engineer (Entry-level)
• Base Salary: $172,800 – $282,000
• Signing Bonus: $50,000 – $100,000
• On-Hire Stock Award: $300,000 – $800,000
• Annual Stock Grant: $180,000 – $320,000
• Typical Role: Principal Software Engineer
Level 66 – Principal Engineer II / Distinguished Engineer I
• Base Salary: $190,000 – $300,000
• Signing Bonus: $50,000 – $120,000
• On-Hire Stock Award: $400,000 – $1 million
• Annual Stock Grant: $200,000 – $400,000
• Typical Role: Principal / Architect / Tech Strategy
Level 67 – Principal Engineer III / Partner-Level IC
• Base Salary: $200,000 – $330,000
• Signing Bonus: $60,000 – $150,000
• On-Hire Stock Award: $500,000 – $1.2 million
• Annual Stock Grant: $250,000 – $550,000
• Typical Role: Partner-level Engineer, Distinguished Individual Contributor
Level 68 – Partner / Distinguished Engineer II
• Base Salary: $220,000 – $370,000
• Signing Bonus: $75,000 – $200,000
• On-Hire Stock Award: $750,000 – $1.5 million
• Annual Stock Grant: $350,000 – $800,000
• Typical Role: Partner, Architect, AI/ML Lead
Level 69 – Partner II / Technical Fellow (rare)
• Base Salary: $250,000 – $390,000
• Signing Bonus: $100,000 – $250,000
• On-Hire Stock Award: $1 million – $1.7 million
• Annual Stock Grant: $500,000 – $1.1 million
• Typical Role: Technical Fellow, Senior AI Leader
Level 70 – Distinguished Engineer / Technical Fellow (highest)
• Base Salary: $300,000 – $408,000
• Signing Bonus: $150,000 – $300,000
• On-Hire Stock Award: $1.2 million – $1.9 million
• Annual Stock Grant: $600,000 – $1.47 million
• Typical Role: Technical Fellow, Deep AI/ML or Azure Architect, CTO-level engineers
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.