Microsoft Salaries in 2025 Revealed: Here’s How Much Engineers, Data Scientists, Managers, and Others Are Paid in US Dollars
Microsoft, a global tech titan known for Windows, Azure, and AI innovations, remains a top destination for tech talent in 2025. Despite recent layoffs affecting around 9,000 employees, the company continues to offer competitive salaries, particularly for roles driving its AI and cloud initiatives. Based on recent visa data and industry reports, here’s a detailed breakdown of Microsoft’s salary landscape for engineers, data scientists, managers, and other key roles in the United States, expressed in US dollars. These figures reflect base salaries from the first quarter of 2025, excluding bonuses and stock options, which can significantly boost total compensation.
Software Engineers: The Backbone of Innovation
Software engineers are at the heart of Microsoft’s technological advancements, from cloud infrastructure to AI algorithms. Salaries vary by experience and specialization, with a clear premium for AI-focused roles.
- Entry-Level Software Engineer (SDE I, L59): Base salaries range from $82,971 to $120,000. New graduates typically start here, benefiting from Microsoft’s robust training programs.
- Mid-Level Software Engineer (SDE II, L60-62): Salaries span $120,000 to $173,000, with a median of around $147,524. These roles often involve complex projects in Azure or Windows development.
- Senior Software Engineer (L63-64): Base pay ranges from $154,000 to $284,000, with AI and machine learning specialists earning toward the higher end.
- Principal Software Engineer (L65+): Top earners command up to $336,000, particularly in AI-driven divisions like machine learning. Total compensation, including stock and bonuses, can exceed $1 million for elite performers.
Note: AI-focused engineers, such as those in machine learning, can earn up to 20% more than their peers in non-AI roles, reflecting Microsoft’s strategic push in this area.
Data Scientists: Powering Insights with AI
Data scientists at Microsoft play a critical role in leveraging data for AI, business intelligence, and product development. Their salaries reflect the high demand for these skills.
- Entry-Level Data Scientist: Base salaries start at $121,200, with new hires often working on analytics for products like Power BI.
- Mid-Level Data Scientist: Salaries range from $130,000 to $200,000, depending on experience and project scope.
- Senior Data Scientist: Pay reaches up to $274,500, with those in AI-related roles earning closer to the top end. Total compensation, including equity, can approach $400,000 for senior roles.
Insight: Data scientists in AI divisions earn higher salaries than those in traditional analytics, with visa data showing a premium for machine learning expertise.
Managers: Leading Teams to Success
Managers at Microsoft, including software engineering and product managers, oversee critical projects and teams, with salaries reflecting their leadership responsibilities.
- Software Engineering Manager: Base salaries range from $197,185 to $301,000, with top earners in AI-focused teams. Total compensation for senior managers can exceed $1.47 million, including stock awards.
- Product Manager: Salaries span $122,800 to $250,000, with technical product managers in AI or cloud computing earning toward the higher end.
- Senior Program Manager (IT): These roles average $152,388, with pay ranging from $120,900 to $238,000 for technical program managers.
Trend: Managers contributing to AI projects receive retention bonuses and higher pay, aligning with Microsoft’s focus on AI innovation.
Other Key Roles: Diverse Opportunities
Microsoft’s workforce spans various roles, each with competitive pay reflecting the company’s commitment to attracting top talent.
- Hardware Engineer: Salaries range from $136,000 to $270,641, with higher pay for those in silicon engineering or Xbox hardware development.
- Cloud Network Engineer: Pay ranges from $122,700 to $220,716, driven by demand for Azure infrastructure expertise.
- Applied Scientist: Salaries span $127,200 to $261,103, with roles in AI research commanding top dollar.
- Business Analyst: Pay ranges from $159,300 to $191,580, with roles supporting strategic initiatives like LinkedIn or Microsoft 365.
- Corporate Vice President: These rare executive roles can earn up to $650,000 in base salary, with total compensation often exceeding $1 million when including equity.
Factors Influencing Salaries
Several factors shape Microsoft’s salary structure in 2025:
- Location: Employees in high-cost areas like Mountain View, CA ($152,775 average) and Redmond, WA ($146,880) earn more than those in lower-cost regions.
- Experience: Salaries jump significantly at key transitions, such as from mid-level to senior (+$46,000) or senior to lead (+$20,000).
- Specialization: AI, machine learning, and cloud computing roles command premiums due to market demand.
- Bonuses and Equity: Base salaries are just part of the package. Performance bonuses (10-20% of base) and stock options can boost total compensation by 50-100% for senior roles.
How Microsoft Compares to Competitors
Microsoft’s salaries are competitive but slightly lower than Google and Meta for some roles. For example:
- Software Engineers: Google pays $109,180–$340,000, and Meta offers $120,000–$480,000, compared to Microsoft’s $82,971–$284,000.
- Data Scientists: Google’s range is $133,000–$260,000, while Microsoft’s is $121,200–$274,500, showing close competition.
- Total Compensation: Google and Meta often offer larger stock packages, but Microsoft’s benefits, like work-life balance and career growth opportunities, remain attractive.
The Bigger Picture: Microsoft’s Compensation Strategy
Microsoft’s 2025 salary data, drawn from over 5,400 H-1B visa applications and federal filings, highlights its commitment to rewarding talent in high-demand fields like AI and cloud computing. Despite layoffs, the company continues to invest in top performers, with retention bonuses for AI contributors and competitive packages for senior roles. For prospective employees, Microsoft offers not only high salaries but also comprehensive benefits, including health programs, continuous learning resources, and a culture increasingly focused on teamwork over individual competition.
Aspiring Microsoft employees should focus on building technical skills in AI, cloud platforms, or data science, as these areas command the highest pay. With a median employee salary of $193,744 in 2024 (408x lower than CEO Satya Nadella’s $79.1 million), Microsoft remains a lucrative destination for tech professionals, though navigating its competitive hiring process requires persistence and expertise.
Sources: Business Insider, Financial Express, India Today, Levels.fyi, ZipRecruiter, based on visa data and federal filings from Q1 2025.
