Microsoft Employee Benefits and Perks

Microsoft Employee Benefits and Perks

There are a few names in the tech world that command a lot of respect and admiration, like Microsoft. The tech giant was founded by Bill Gates and Paul Allen in 1975 and has been at the forefront of innovation, creating some of the most iconic products in computing history. Yet, beyond its remarkable products and technologies, Microsoft has made a name for itself with its exceptional commitment to employee well-being. Microsoft's dedication to its employees is evident through the array of benefits and perks that make it a dream workplace for many. This article takes a deep dive into Microsoft's employee benefits and perks, revealing how the company's approach to employee welfare has set a benchmark for the tech industry.

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Competitive Compensation

Let's start by examining the cornerstone of employee satisfaction: compensation. Microsoft understands the value of attracting and retaining top talent, and it begins with competitive compensation.

Microsoft offers its employees a highly competitive base salary, ensuring that they are rewarded fairly for their skills and contributions. The average salary in the United States is $131,100 per year. In the bottom 10th percentile, the salary ranges from $99,000 a year, whereas in the top 90th percentile, the salary is $172,000. Salaries at Microsoft vary depending on the department you work in. Microsoft salaries in the research and development department are the highest, with an average salary of $137,873.

The company is known for its commitment to salary transparency and pay equity. Microsoft is committed to the principle of pay equity, which accounts for factors that legitimately influence total pay, including things like job title, level, and tenure. Microsoft has been reporting on pay equity since 2016 in support of its commitment to pay employees equitably for substantially similar work. The company also conducts regular pay equity analyses to identify and address any pay disparities based on gender or race/ethnicity. In June 2022, Microsoft announced that it would publish salary ranges for all U.S. job postings by January 2023. This move is intended to provide greater transparency to job seekers and reduce the awkward conversations around pay expectations.

Microsoft also provides performance-based bonuses and stock options. This performance-based approach encourages employees to excel in their roles, ultimately driving the company's success. According to PayScale, Microsoft Corp pays an average of $13,827 in annual employee bonuses. The bonus pay at Microsoft Corp ranges from $9,414 to $113,003 annually among employees who report receiving a bonus. However, the exact performance-based bonus amount varies depending on the employee's position, performance, and other factors. Microsoft does not provide details on merit increase percentage every year, but it is common to be anywhere between 2% and 3%.

Stock options allow employees to share in the company's growth and success, aligning their interests with those of the organization. Microsoft primarily grants stock options in conjunction with business acquisitions, and the number of stock options granted varies from year to year. According to Glassdoor, Microsoft employees receive an average of $10,000 per year in stock options. Stock options are subject to a 4-year or 5-year vesting schedule, depending on the type of stock option.

Related: Apple Employee Benefits and Perks

Health and Wellness Benefits


Microsoft goes above and beyond to ensure the physical and mental well-being of its employees. The company offers comprehensive healthcare plans that cover a wide range of expenses, including medical, dental, and vision expenses. They also provide high-deductible health plans and a health savings account as healthcare options. Eligible employees can also enrol in a flexible spending account to cover out-of-pocket medical expenses.

In recognition of the growing importance of mental health in today's fast-paced world, Microsoft offers robust mental health support and resources. Employees have access to Employee Assistance Programs that provide counseling services, stress management programs and mental health resources. Employees also have access to meditation classes to help them maintain a healthy work-life balance.

In addition to these benefits, Microsoft provides on-site fitness classes, yoga, Zumba, and wellness programs, making it easy for employees to prioritize their health. The availability of these facilities and programs varies depending on the location, but they reflect Microsoft's commitment to helping employees stay active and healthy. The company also offers $1,200 per year to cover wellness expenses such as gym memberships, massages, and financial advice, among other things.

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Work-Life Balance

One of the standout features of Microsoft's benefits package is its dedication to work-life balance. According to employee reviews on Indeed and Glassdoor, Microsoft is generally considered to offer a good work-life balance. The company understands that employees are most productive and innovative when they have the time and flexibility to recharge outside of work.

Microsoft offers generous time off, allowing employees to take vacations, recover from illnesses, and spend time with family and friends. Paid parental leave is also part of the equation to support new parents. The company implemented a new "Discretionary Time Off" (DTO) policy, which provides employees with unlimited time off. This policy replaces the previous system of three weeks of paid time off per year, with an additional week granted every sixth year for a total of up to six weeks. The new policy allows employees to take time off as needed without the need to accrue vacation hours, carry a vacation balance, or carry over unused vacation to subsequent years. Microsoft also offers ten corporate holidays, leaves of absence, sick and mental health time off, and time away for jury duty or bereavement.

Flexibility is another key element of Microsoft's work culture. The company supports various flexible work arrangements, including remote work, telecommuting, part-time schedules, and job sharing. This flexibility acknowledges that employees have diverse needs and responsibilities outside of the workplace.

Moreover, Microsoft's response to the COVID-19 pandemic showcased its commitment to employee well-being. The company quickly pivoted to remote work, enabling its employees to work from home safely and effectively, a testament to its adaptability and focus on employee safety.

Related: Amazon Employees Benefits and Perks

Career Development and Education

Microsoft recognizes the importance of continuous learning and development in a rapidly evolving tech industry. The company provides numerous opportunities for employees to grow in their careers.

Professional development opportunities at Microsoft are both varied and abundant. These include mentorship programs, leadership training, coaching on career development, and personalized, integrated, and relevant views of all learning opportunities through Microsoft Learning and LinkedIn Learning. Employees are encouraged to set their career goals and are given the tools to achieve them. Microsoft provides internal training and certification programs such as Microsoft Certified: Azure Administrator Associate, Microsoft Certified: Power Platform App Maker Associate, and Microsoft Certified: Dynamics 365 Fundamentals.

Moreover, Microsoft supports employee education through tuition reimbursement programs. The company reimburses up to $5,250 per year for eligible expenses, such as tuition, fees, and books. Employees are empowered to pursue further education and skill development, whether it's obtaining an advanced degree, attending workshops, or taking relevant courses.

Access to cutting-edge technologies and training is another advantage of working at Microsoft. Employees have the opportunity to work with some of the most innovative and advanced tools and platforms in the tech industry, helping them stay at the forefront of their respective fields.

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Retirement and Financial Planning



Microsoft understands that planning for the future is crucial for its employees. The company provides several financial planning benefits to help its workforce secure their financial future.

One of the benefits is the 401(k) retirement plan managed by Fidelity, which includes a company match. They provide employees with over 20 investment options and full vesting without a vesting period. This encourages employees to save for their retirement and ensures that they have financial security in their later years.

In addition to the 401(k) plan, Microsoft offers financial counseling and planning services. These resources help employees make informed decisions about their financial well-being, whether it's investing, saving, or planning for major life events.

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Employee Recognition and Well-being

Microsoft is renowned for its employee recognition programs, designed to reward and acknowledge exceptional contributions. These programs motivate employees to excel in their roles, creating a culture of recognition and appreciation. The company also provides frequent promotion opportunities.

Microsoft also rewards and recognizes its employees through Viva Engage. Viva Engage is a platform for peer recognition and appreciation where rewards are given to employees who help out their colleagues by asking and answering questions.

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Diversity and Inclusion Initiatives

Microsoft is committed to creating a diverse and inclusive work environment. The company believes that diversity and inclusion are not just moral imperatives but also essential for driving innovation and success. They have an annual Diversity and Inclusion Report that highlights the representation of various demographic groups within its workforce.

In terms of representation, the company's 2022 Diversity and Inclusion report shows that 53.2% of Microsoft's core U.S. workforce is made up of employees from racial and ethnic minority groups. 85.1% of employees also agreed or strongly agreed that they were diverse and inclusive and valued different perspectives.

Microsoft has established numerous employee resource groups (ERGs) that focus on different aspects of diversity, including gender, race, sexual orientation, and disability. These groups provide a sense of community and support for employees who identify with these communities, ensuring that they feel valued and included. Some of them include:

  • HOLA - Hispanic/Latinx Organisation of Leaders in Action
  • BAM - Black and African employees at Microsoft
  • W@M - Women@Microsoft
  • GLEAM - Global LGBTQI+ Employees and Allies at Microsoft

Each ERG at Microsoft has a set of rotating executive sponsors, constituting the CEO Inclusion Council, which creates an open channel of communication between employee communities and the company's executive leadership.

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Family-Friendly Benefits

Many unique challenges and responsibilities come with raising a family. To support its employees, Microsoft offers a range of family-friendly benefits listed below:

Adoption Assistance

Microsoft provides an adoption assistance benefit of $10,000 per adopted child.

Childcare Benefits

Microsoft partners with Bright Horizons, a leading provider of employer-sponsored childcare services, so as to offer discounted childcare and backup care. They reimburse up to 160 hours of childcare.

Paid Family Leave

Birth mothers receive 20 weeks of paid leave, whereas new parents receive 12 weeks of paid leave, and this includes adoptions and foster placements.

Related: Apple Employee Discounts: Everything You Need To Know

Technology and Perks

As a technology company, Microsoft offers its employees exciting perks related to its products and services. These perks are not only enticing but also promote employee engagement and development.

Software and hardware discounts: Employees can enjoy discounts on Microsoft products, such as Windows and hardware, like keyboards and mice.

Workplace Discount Program: This program provides a 30% discount on Microsoft 365 Family or Personal annual subscriptions for use at home. In select markets, eligible employees also receive a discount on select Surface devices and accessories.

Employee Discount: Microsoft gives employee discounts on health club memberships, stock purchasing, and discounts for technology, arts, entertainment, and sporting events.

AT&T Signature Program: Employees at Microsoft can enjoy exclusive savings from AT&T, such as a $10/month discount on the best-unlimited plan with a qualifying service agreement.

In an effort to promote its workers' well-being and job happiness, Microsoft provides a range of benefits and options for commuting. Microsoft workers have access to a variety of subsidized transportation and commute choices. These include:

Shuttle buses: Microsoft offers a convenient means of transportation for staff members to and from the company's headquarters through the operation of a fleet of private buses.

Electric car charging stations: Microsoft offers the necessary infrastructure for charging electric vehicles, encouraging environmentally friendly modes of mobility for its staff.

Community and Social Engagement

In addition to its internal perks and benefits, Microsoft is dedicated to fostering a sense of community and social engagement among its employees.

The Microsoft Matching Gifts Program: matches employee gifts to charity organizations Under Microsoft's annual Matching Gifts program, staff members can contribute cash, shares, or Microsoft goods to any charitable organization, and Microsoft will match that contribution up to a certain amount. Microsoft also offers a database of over 55,000 charitable organizations and educational institutions.

Microsoft Employee Giving Campaign: The goal of this program is to increase public awareness of charitable organizations and encourage donations to support them. Employees are invited to collaborate with Microsoft during October in order to support the causes that motivate them. Up to $15,000 a year, the firm doubles each employee's gifts of cash, goods, and labor to charitable organizations.

Community Involvement: Microsoft provides a $25 hourly donation to the qualified organizations that its workers assist when they volunteer in the community. Additionally, Microsoft offers local charitable groups the chance to apply for the IT Makeover Campaign, which grants funding for technological upgrades. The business will provide a total of $25,000 in qualified community money, which will be given to nonprofit winners chosen from a pool of applications from throughout Northern Nevada.

Using Technology to Empower Volunteers: Microsoft provides tools that make it simple for organizations to locate opportunities and the ideal volunteers for them. Volunteer managers now have easy-to-use, centralized tools to satisfy organizational objectives and effectively engage volunteers thanks to the Volunteer Management and Volunteer Engagement solutions offered by Microsoft Cloud for Nonprofit.


In conclusion, Microsoft's commitment to its employees is second to none. The company's comprehensive benefits and perks demonstrate its dedication to creating a workplace that promotes employee well-being, diversity, and inclusion. Microsoft understands that a happy, healthy, and motivated workforce is essential for achieving its mission of empowering every person and every organization on the planet to achieve more.

Through competitive compensation, health and wellness benefits, a focus on work-life balance, career development and education opportunities, retirement and financial planning benefits, employee recognition and well-being programs, diversity and inclusion initiatives, family-friendly policies, technology and perks, and community and social engagement, Microsoft has set a benchmark for other companies in the tech industry.

Microsoft's approach to employee welfare goes beyond mere HR policies; it is an integral part of the company's culture and values. It's no wonder that Microsoft remains one of the most coveted employers in the tech world, consistently attracting and retaining top talent. With an eye on the future, Microsoft continues to evolve its benefits and perks to address the ever-changing needs of its employees, making it an even more attractive destination for those seeking a fulfilling career in the tech industry.

Belinda Pondayi
This article was written by Belinda a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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