Microsoft’s Other Benefits & Compensation
How Employees at Microsoft Are Paid
There are multiple ways you’re compensated as an employee at Microsoft:
- Base Salary
- Annual Cash Bonuses
- Stock Awards
The base salary is straightforward: it is paid out twice a month. Annual cash bonuses are paid out in September of each year, and these ranged between zero and 40% of eligible salary.
Each August, Microsoft employees are also eligible to receive new stock awards, and these stock awards vest over five years 20% per year, on a quarterly basis. This can create a positive waterfall effect for Microsoft employees who have multiple stock awards vesting over the course of five years, and those vests essentially stack up on top of each other, which can give savvy Microsoft employees the opportunity to use this form of compensation to cover their living expenses while investing their base salary.
Microsoft’s Health Benefits
Microsoft has two different health plans: a standard employee health plan and a Health Savings Account (HSA). The HSA plan is a strategic way to save for future healthcare costs and reduce your annual tax bill by thousands. Contributions to HSAs have a similar impact on taxes as contributions to a traditional 401k. Unlike a traditional 401(k), deductions from the account are not taxable if used for healthcare expenses.
HSAs encourage saving for future health expenses and offer the flexibility to use current year contributions used for future expenses. For those with low general health costs who regularly contribute, HSA funds can accumulate over the years and grow well past their original contributions, and be used as a retirement account when medical costs are higher.
Microsoft’s Family Coverage
Microsoft also provides a variety of benefits that allow you to take time to care for family members. Parental leave enables parents to spend time with their new child and family. You are also eligible to take fully paid leave to care for a seriously ill immediate family member.
In addition to time off, Microsoft provides families with discounts on child care. Families also have access to to the College Coach program, to help them navigate the college admissions and financing processes.
Microsoft’s Education Benefits
Microsoft provides continuing education resources to help you learn as your career progresses and current in your field.Employees may be eligible to receive financial assistance for tuition expenses when courses are taken at an accredited institution and relates to the business of Microsoft. There are several internal professional development courses available to employees as well as access to a wide variety of reading materials in the on–site library. The Outside–In speaker series has hosted inspirational speakers like Trevor Noah and Brene Brown.
Microsoft’s Additional Benefits
Legal services are available to Microsoft employees at a discounted rate. Employees who enroll in this benefit, have a minimal amount deducted from each paycheck. Once enrolled, employees are able to engage with lawyers on a wide–range of services.
MORE MICROSOFT INSIGHTS
For more information and advice from our Microsoft-focused advisors visit our main Microsoft page, or other pages focused on Microsoft RSUs and ESPP, or Microsoft 401(k) & Retirement. If you are a Level 67 or higher employee at Microsoft, visit our Microsoft Deferred Compensation Plan page.
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