Microsoft

Microsoft offers one of the strongest 401(k) plans in tech: a 50% match on every pre-tax and Roth dollar contributed, up to the IRS elective deferral limit ($24,500 in 2026). This yields a maximum employer match of $12,250 per year, all of which vests immediately with no waiting period. The plan is administered through Fidelity and supports traditional pre-tax, Roth, and after-tax contributions.

Critically, the plan allows the Mega Backdoor Roth strategy through after-tax contributions and in-plan Roth conversions. After the elective deferral and employer match, employees under 50 can contribute approximately $35,250 in additional after-tax dollars and convert them to Roth. For Level 67 and above, Microsoft also offers a Deferred Compensation Plan (DCP) allowing deferral of up to 75% of salary and 100% of annual bonus into a non-qualified account.

Microsoft grants RSUs as its primary equity vehicle. On-hire stock awards vest over four years at 25% annually, with the first vest on the employee's first anniversary. Annual refresh grants (awarded each August after performance reviews) vest over five years at 20% annually on a quarterly cadence, with vests in February, May, August, and November. Mid-year promotions may trigger additional grants in March.

Microsoft's ESPP offers a 10% discount on the closing price on the last business day of each quarterly offering period, with no lookback provision. Employees can contribute 1% to 15% of eligible compensation. While the 10% discount is lower than the 15% offered by Apple or Google, the quarterly purchase cycle and guaranteed return still make it a valuable benefit. The company's 55/15 rule allows employees aged 55 or older with 15+ years of continuous service to continue vesting stock grants that are more than one year old after separation.

Microsoft provides comprehensive medical, dental, and vision coverage with multiple plan options including PPO and HDHP with HSA. Salaried employees have Discretionary Time Off (unlimited PTO), while hourly employees accrue 15–25 vacation days depending on tenure. All employees receive 10 corporate holidays. Birth parents receive up to 20 weeks of paid leave (12 weeks parental plus 8 weeks maternity disability); all other new parents receive 12 weeks.

The Perks+ program provides $1,500 annually for wellness-related expenses including gym memberships, financial advising, massage, and caregiver support. Tuition reimbursement covers up to $10,000 per year for graduate coursework. The Redmond campus offers subsidized PRO Club fitness memberships ($67/month) with access to 11 locations, indoor pools, and hundreds of weekly group fitness classes. Microsoft also offers charitable donation matching and adoption assistance.

Microsoft operates on an Open Window / Closed Window system for employees designated as Insiders (those with regular access to material nonpublic information). Rather than publishing fixed blackout dates, Microsoft emails Insiders when trading windows open (typically the first business day after quarterly earnings) and when they close (with a 14-day advance warning). Microsoft's fiscal year ends June 30, with quarterly earnings typically reported in late January, late April, late July, and late October.

Blackout periods generally begin two to four weeks before the end of each fiscal quarter and extend until the day after earnings are publicly released. Employees are prohibited from disclosing window dates to outside parties, including brokers and financial advisors. Rule 10b5-1 plans can be established during open windows for pre-scheduled automated trades. If employment ends during a blackout period, the employee remains subject to the remainder of that blackout.

Microsoft total compensation consists of base salary, RSUs, and annual cash bonuses. Software engineers earn from approximately $152,000 at Level 59 (entry SDE) to over $536,000 at Level 67 (Partner SDE), with Distinguished Engineers (Level 68+) earning $600,000 to over $1 million. Annual bonuses range from 0–40% of base salary depending on level and performance. At senior levels, RSUs become the dominant compensation component, representing 50–80%+ of total pay.

Microsoft's compensation structure rewards long tenure: overlapping annual and on-hire grants create a compounding equity position. Washington State's lack of income tax is a significant advantage for Redmond-based employees, though capital gains above $250,000 are subject to a 7% state capital gains tax. Location-based pay adjustments apply across Microsoft's offices in Seattle, the Bay Area, New York, and other markets.