Microsoft Software Engineer Salary

Microsoft is one of the original tech companies that popularized hiring software engineers. Today, they employ thousands of software engineers worldwide across various specializations. Microsoft continues to offer competitive benefits and compensation, with a Microsoft software engineer salary varying based on role level, location, and other factors. So, how much can you expect to earn as a software engineer at Microsoft? Our salary negotiation team is here to help you figure that out.

With extensive experience negotiating hundreds of tech job offers, we provide insights based on real-world Microsoft salary negotiations and compensation research. In this guide, you'll find detailed information on Microsoft software engineer levels, the key components of a Microsoft software engineer salary, and a breakdown of average base salaries and total compensation packages by Microsoft SWE levels and location.

Want to Negotiate Your Offer? Get offer-specific guidance from a Microsoft Salary Negotiation Coach. We help software engineers negotiate competitive job offers.

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Microsoft uses a tiered structure for its software engineering roles like most competing tech companies. However, unlike others, Microsoft includes additional numbered tiers within each role level. These tiers designate your specific standing within the Microsoft SWE level and corresponds directly to your Microsoft SDE salary range. For example, within a senior role like a Microsoft Senior SDE or Microsoft Staff SDE, there are sub-levels (such as Microsoft levels 63 and 64 for Microsoft Senior SDE). This role level structure at Microsoft allows software engineers to see compensation progression within a role without requiring a promotion to the next Microsoft software engineer level.

Understanding the Microsoft software engineer levels is important before interviewing and accepting an offer, as they influence your software engineering responsibilities, total compensation, and career trajectory within Microsoft. Microsoft determines the Microsoft SWE levels based on a combination of factors, including years of experience, the scope of responsibilities, and the overall impact of the role.

In this section, we provide an overview of the Microsoft software engineer levels to help you navigate their role levels. As a software engineer at Microsoft, you can follow either an Individual Contributor (IC) or Engineering Manager (EM) career path. Below are the Microsoft SWE levels for the IC track:

• Microsoft Software Engineer 1 (Level 59)

• Microsoft Software Engineer 1 (Level 60)

• Microsoft Software Engineer 2 (Level 61)

• Microsoft Software Engineer 2 (Level 62)

• Microsoft Senior Software Engineer (Level 63)

• Microsoft Senior Software Engineer (Level 64)

• Microsoft Principal Software Engineer (Level 65)

• Microsoft Principal Software Engineer (Level 66)

• Microsoft Principal Software Engineer (Level 67)

• Microsoft Partner Software Engineer (Level 68)

• Microsoft Partner Software Engineer (Level 69)

We focus on the Microsoft software engineering levels for the IC track on this page, but for reference here are the Microsoft Engineering Manager levels for the manager track:

• Microsoft Software Engineering Manager (Level 63)

• Microsoft Senior Software Engineering Manager (Level 64)

• Microsoft Principal Software Engineering Manager (Level 65)

• Microsoft Director Software Engineering (Level 66)

• Microsoft Senior Director Software Engineering (Level 67)

In a Microsoft software engineer salary package, you’ll find five core compensation components. For more in-depth details from us on Microsoft’s compensation structure, you can check out our Microsoft Salary Negotiation article. Below is a quick overview of what to expect before we cover the average compensation for Microsoft software engineer salary.

Microsoft Base Salary

This is the fixed amount you’ll receive in each paycheck at Microsoft as an SDE. There are set base salary ranges for each Microsoft software engineering level and location.

Microsoft Performance Bonus

The performance bonus is a percentage of your base salary, determined by both individual and company performance. Depending on your Microsoft SWE level, the target bonus percentage typically starts 10% and goes up to 45% for higher level roles.

Microsoft Equity Package

Upon joining Microsoft as an SDE, you'll receive an initial grant of Microsoft Restricted Stock Units (RSUs). These will vest over a four-year period in equal increments, meaning you'll receive 25% of your RSUs each year at Microsoft.

Microsoft Sign-on Bonuses

Microsoft typically offers software engineers a sign-on bonus in the first year. This one-time bonus serves as an incentive to join Microsoft or to compensate for any benefits or perks you may lose when leaving your current company.

Microsoft Stock Refreshers

These are annual Microsoft RSU equity grants that you may receive based on your annual software engineering performance review at Microsoft.

Microsoft has a set base salary and total compensation range for each Microsoft software engineer level. While Microsoft typically aims to pay new software engineering hires within the lower to mid-range of these Microsoft SWE salary bands, we’ve successfully negotiated Microsoft software engineer salaries closer to the top end of each Microsoft SDE salary range.

Below, we’ve listed the average compensation for Microsoft software engineers across the Microsoft SWE levels. Note that these figures are averages based on our research and negotiation experience, and not the top end of the Microsoft software engineer pay bands. To identify and reach the top end of the Microsoft SWE salary range and secure a competitive Microsoft software engineer salary, we recommend working with a Microsoft Salary Negotiation Coach.

Microsoft Software Engineer 1 Salary (Level 59)

Here is the average compensation we’ve seen for a level 59 Microsoft software engineer 1 salary.

Microsoft SDE 1 Salary (Level 60)

Here is the average compensation we’ve seen for a level 60 Microsoft SDE 1 salary.

Microsoft Software Engineer 2 Salary (Level 61)

Here is the average compensation we’ve seen for a level 61 Microsoft software engineer 2 salary.

Microsoft SDE 2 Salary (Level 62)

Here is the average compensation we’ve seen for a level 62 Microsoft SDE 2 salary.

Microsoft Senior Software Engineer Salary (Level 63)

Here is the average compensation we’ve seen for a level 63 Microsoft senior software engineer salary.

Microsoft SDE 3 Salary (Level 64)

Here is the average compensation we’ve seen for a level 64 Microsoft SDE 3 salary.

Microsoft Principal Software Engineer Salary (Level 65)

Here is the average compensation we’ve seen for a level 65 Microsoft principal software engineer salary.

Microsoft Principal Engineer Salary (Level 66)

Here is the average compensation we’ve seen for a level 66 Microsoft principal engineer salary.

Microsoft Principal SDE Salary (Level 67)

Here is the average compensation we’ve seen for a level 67 Microsoft principal SDE salary.

Microsoft Partner Software Engineer Salary (Level 68)

Here is the average compensation we’ve seen for a level 68 Microsoft partner software engineer salary.

Microsoft Partner Engineer Salary (Level 69)

Here is the average compensation we’ve seen for a level 69 Microsoft partner Engineer salary.

Microsoft offers competitive pay for software engineers, but salaries at Microsoft can vary significantly depending on the location. For example, a Microsoft software engineer salary Seattle won't be the same as a Microsoft software engineer salary California, and a Microsoft software engineer salary UK will be different compensation than those in the US. As a large tech company, Microsoft closely monitors cost-of-living differences when setting their base salary and total compensation ranges.

Below, we’ve listed the average compensation for software engineers in some of Microsoft's key hiring locations for software engineers at the Microsoft principal engineer salary level (L65). These figures are based on our research and negotiation experience and represent averages, not the top end of the Microsoft software engineer salary bands. To identify and reach the top end of the Microsoft SDE salary range and secure a competitive offer at Microsoft in your specific location, we recommend working with a Microsoft Salary Negotiation Coach.

Microsoft Software Engineer Salary California

Here is the average compensation we’ve seen for Microsoft Software Engineer Salary California.

Microsoft Software Engineer Salary New York, NY

Here is the average compensation we’ve seen for Microsoft Software Engineer Salary New York, NY.

Microsoft Software Engineer Salary Seattle, Washington

Here is the average compensation we’ve seen for Microsoft Software Engineer Salary Seattle, Washington.

Microsoft software engineer salaries vary significantly across countries and non-US locations will have different Microsoft SWE salary pay rates. For example, a Microsoft software engineer salary UK won't be the same as a Microsoft SDE salary in Canada. It will also be lower than what Microsoft pays software engineers in the US.

Below, we’ve listed the average compensation for software engineers in some of Microsoft's key international hiring locations for software engineers at the Microsoft engineer salary level (L65). These figures are based on our research and negotiation experience and represent averages, not the top end of the Microsoft SDE salary bands. To identify and reach the top end of the Microsoft software engineer salary range and secure a competitive offer at Microsoft in Europe or Canada, we recommend working with a Microsoft Salary Negotiation Coach.

Microsoft Software Engineer Salary London, UK

Here is the average compensation we’ve seen for Microsoft Software Engineer Salary London, UK.

Microsoft Software Engineer Salary Vancouver, Canada

Here is the average compensation we’ve seen for Microsoft Software Engineer Salary Vancouver, Canada.

Increasing the pay in your job offer at Microsoft requires a deep understanding of their compensation philosophy and the right salary negotiation strategy. Our expert Microsoft Salary Negotiation Coaching will help you navigate the negotiation process and secure the top end of Microsoft’s pay band.