Microsoft Engineers Weigh In on Their $205,000 Median Salary in Leaked Survey

An internal Microsoft survey has revealed how employees truly feel about their compensation, and the results may surprise some. Conducted in October 2024, the "Employee Signals" survey asked workers whether they believed their job at Microsoft was a "good deal"—essentially, if the balance between their contributions and compensation felt fair. According to data obtained by Business Insider, 65% of employees responded positively, reflecting an increase of three percentage points from a similar survey conducted earlier in the year.

Microsoft, known for its competitive salaries and generous benefits, has long been a top choice for tech talent. The median salary for a software engineer at the company stands at an impressive $205,000, while product managers earn an average of $165,000, with potential bonuses reaching $30,000. Despite these figures, the company continues to navigate shifting economic conditions, impacting both salaries and job security.

Microsoft has historically taken employee feedback seriously, particularly when it comes to compensation. In 2022, after receiving low satisfaction scores in similar internal surveys, the company responded by increasing base salaries, boosting bonuses, and enhancing stock-based compensation to retain top talent. This move was seen as a strategic effort to stay competitive against other tech giants like Amazon and Meta, both of which have aggressively recruited software engineers with high salaries and lucrative stock options.

However, the company’s approach to compensation has not been without its challenges. In 2023, Microsoft made the difficult decision to freeze salaries for full-time employees due to economic uncertainty and a greater focus on artificial intelligence investments. At the same time, the company cut 10,000 jobs in an effort to optimize its workforce. While salary increases resumed in 2024, layoffs continued, with 1,900 employees from the gaming division being let go. More recently, Microsoft executed another round of performance-based job cuts, affecting around 2,000 workers.

These layoffs have raised concerns among employees about job security, even as salaries remain competitive. Microsoft currently employs approximately 228,000 people, a number that has been gradually decreasing due to strategic workforce reductions. The tech giant’s ability to balance compensation, job stability, and innovation investment will likely play a crucial role in maintaining employee satisfaction moving forward.

When compared to competitors, Microsoft’s pay is relatively strong, but not necessarily the highest in the industry. The median pay at Meta, for example, is reported to be $379,000 per year. While Microsoft software engineers earn a median salary of $205,000, those at Meta reportedly make an average of $173,795 per year, with product managers there earning around $193,942. These figures indicate that while Microsoft offers highly competitive salaries, some employees may still be drawn to rival companies with more aggressive compensation packages.

Despite these comparisons, Microsoft remains a major player in the tech employment landscape, attracting top talent with its reputation, stability, and strong compensation structure. For many employees, the decision to stay at Microsoft is about more than just salary—it’s about work culture, opportunities for career growth, and access to cutting-edge technology. As the company continues to evolve in an increasingly AI-driven world, how it adapts its compensation and employment strategies will be key to retaining its workforce and maintaining employee satisfaction.

The results of the "Employee Signals" survey suggest that while a majority of Microsoft employees feel they are getting a fair deal, there is still room for improvement. With ongoing industry shifts, increased competition for top talent, and economic uncertainties, Microsoft’s ability to respond to employee concerns and adjust its compensation strategy will remain critical in the years ahead.