Compensation reference

Amazon Engineering Levels and Salary: L4 to L10, and Why Year One Pay Is Not What You Think

Amazon pays engineers differently from every other large technology company, and the difference is not the amount. It is the timing. Stock vests five per cent in year one, fifteen in year two, then forty and forty, so eighty per cent of your equity arrives in the second half of the grant. Sign on bonuses paper over the first two years and then stop. The result is that a single average salary figure, which is what almost every guide publishes, describes none of your four years accurately. This page breaks the numbers down year by year instead.

Last reviewed
August 2026
Levels covered
L4 to L10
Base salary cap
$350k, not $160k
Reading time
About 20 minutes

Start here

Why Amazon pay works differently

Three structural facts explain almost everything unusual about an Amazon offer. If you understand these, the rest of this page is detail.

The base cap is $350k, not $160k

Amazon raised its United States base salary cap in 2022 after the old limit cost it senior candidates. Guides still quoting a $160k cap are four years out of date, and there are a lot of them.

Equity vests 5, 15, 40, 40

Eighty per cent of your stock arrives in years three and four. Amazon is effectively alone among its peers in back loading, and it is a deliberate retention mechanism rather than an accident.

Sign on bonuses bridge two years, then stop

Amazon pays a sign on in year one and a smaller one in year two to cover the vesting gap. They are one time payments, and forgetting that is how candidates misread their own offer.

The map

The L4 to L10 ladder and what it pays

Amazon's corporate ladder starts at L4. Levels one to three cover hourly and warehouse roles, so an engineer's first rung is L4 rather than L1, which is part of why cross company level comparisons go wrong so often.

Median figures below are reported United States total compensation for software engineers, averaged across the four year grant.

Amazon engineering levels and reported median total compensation
LevelTitleTypical experienceWhat you ownMedian total comp, USA
L4SDE I0 to 3 yearsWell defined tasks$188k
L5SDE II3 to 6 yearsComponents end to end$276k
L6SDE III, Senior SDE6 to 10 yearsLarge systems and several teams$413k
L7Principal Engineer10 to 18 yearsTechnical direction across an organisation$732k
L8Senior Principal Engineer15 to 25 yearsCompany wide initiativesAround $880k
L10Distinguished Engineer20 plus yearsAmazon wide technical strategy$1.4M plus

For scope and responsibility detail at each rung rather than pay, see the Amazon SDE levels guide. For the interview loop, see the Amazon engineering interview process.

The mechanism

The 5, 15, 40, 40 vesting schedule

Amazon grants restricted stock units that vest across four years in an unusual shape: five per cent in year one, fifteen in year two, then forty in each of years three and four. Years three and four pay out every six months rather than annually.

Almost every peer does the opposite. Google front loads at roughly thirty three per cent in year one. Meta vests evenly at twenty five per cent a year. Amazon is close to alone in back loading, and it is doing it on purpose.

How an Amazon stock grant vests across four years
YearShare of grant that vestsHow it is paid outWhat bridges the gap
Year 15 per centAnnually, on the first anniversaryLarge sign on bonus
Year 215 per centAnnually, on the second anniversarySmaller sign on bonus
Year 340 per cent20 per cent every six monthsNone, and none needed
Year 440 per cent20 per cent every six monthsNone

The logic is retention. An engineer who leaves at the two year mark walks away from eighty per cent of the equity they were promised, which is a powerful reason to stay through the third year even if the job has stopped being enjoyable. Whether that is a fair deal depends entirely on how confident you are about staying, and it is worth being honest with yourself about that before signing rather than after.

The sign on bonuses exist purely to make the early years survivable. Amazon pays one in year one and a smaller one in year two, sized roughly to fill the gap the vesting schedule leaves behind. They are genuinely useful money and they are also the reason so many candidates misread their offer, because they inflate exactly the period a recruiter is most likely to quote.

Illustrative offer components by level, United States
LevelBase salaryStock grant, four year totalSign on, year 1Sign on, year 2
L4$141k$140k$42k$22k
L5$175k$320k$65k$40k
L6$210k$640k$110k$70k
L7$270k$1.5M$180k$120k
L8$280k$2.0M$250k$160k

The numbers that matter

What you actually earn in each of four years

This is the table that most Amazon salary guides should lead with and almost none of them publish. It takes the components above, applies the vesting schedule, and shows what lands in your account each year.

Compare the year one column against the reported median in the final column. At L7 the difference is more than two hundred thousand dollars, and both numbers are honestly described as Amazon L7 compensation.

Total compensation by year, illustrative United States packages
LevelYear 1Year 2Year 3Year 4Reported median
L4$190k$184k$197k$197k$188k
L5$256k$263k$303k$303k$276k
L6$352k$376k$466k$466k$413k
L7$525k$615k$870k$870k$732k
L8$630k$740k$1.08M$1.08MAround $880k

How to read this

Years one and two are held up by sign on bonuses that will not repeat. Year three is where the offer becomes what it was always meant to be, and it is also the first year that reflects your actual steady state earnings. If you are modelling an Amazon offer against another one, year three is the fairest single year to compare, because it is the first year without artificial support on either side.

The step from year two to year three is the important one. At L6 it is roughly ninety thousand dollars. At L7 it is over two hundred and fifty thousand. This is what people mean when they say Amazon compensation is back loaded, and it explains why the company's attrition is concentrated so heavily just after the third year vest.

One caveat on the later years. These figures assume no refresher grants, which most engineers do receive from year two onward. Refreshers overlap with the original grant and smooth the curve considerably, so a long tenured engineer sees less dramatic swings than a table built on a single grant suggests. They are also not guaranteed, which is why they are excluded here rather than assumed.

Level by level

Pay and scope at every level

Each level below covers what the work involves and, more usefully, how the shape of the package changes as you climb. The proportion of your pay that arrives as stock rises steadily, which means your exposure to the share price rises with it.

L4

Software Development Engineer I

0 to 3 years

The graduate entry point, and the level where the pay structure is closest to a normal salaried job.

An L4 works on well scoped tasks with a senior engineer close by, and the expectation is trajectory rather than throughput. What makes Amazon distinctive at this level is how early operational ownership arrives. On call rotations, tickets, and production responsibility land on L4 engineers far sooner than they would at most companies, and that shapes the job more than the coding does.

L4 is also the level where the compensation structure hurts least. Base salary is about three quarters of the package, the stock grant is small enough that the vesting schedule barely matters, and the sign on bonus comfortably covers the gap. The distortions that make senior Amazon offers hard to evaluate have not really kicked in yet.

Reported median

$188k

Typical band

$160k to $220k

Shape of the package

Base salary dominates at roughly 75 per cent of the package. This is the only level where that is true.

Moving up from here

L4 to L5 usually takes two to three years and is the most predictable move on the ladder. Amazon has historically applied real pressure to clear it rather than sit at L4 indefinitely.

L5

Software Development Engineer II

3 to 6 years

Owning components end to end, and the first level where the vesting schedule starts to distort the offer.

L5 engineers design and own components outright, work through ambiguity inside a defined boundary, and are expected to operate without someone checking the design first. This is the workhorse level of Amazon engineering and by far the most populated.

It is also where offer evaluation gets genuinely tricky. The stock grant is now large enough that the five per cent first year vest leaves a visible hole, and the sign on bonuses papering over it are one time payments that disappear. A candidate comparing a first year Amazon number against a competitor's steady state number is comparing two things that are not alike.

Reported median

$276k

Typical band

$230k to $370k

Shape of the package

Stock becomes roughly a third of the package, and two thirds of your first two years of pay is base plus a bonus that will not repeat.

Moving up from here

L5 to L6 takes three to five years and is the promotion that most obviously changes your earnings, because the grant size steps up sharply.

L6

Senior SDE, also called SDE III

6 to 10 years

The level most experienced external hires target, and the point where equity overtakes salary.

An L6 owns large systems and influences several teams, with real say in architecture and roadmap. Amazon L6 maps roughly to Google L5 and Meta E5, which surprises people who assume the higher number means more seniority. Level numbers are not comparable across companies and the mapping matters when you are weighing offers.

Compensation changes character here. The stock grant is now the largest component by some distance, which means your realised pay depends heavily on what the share price does between your grant date and your vest dates. Two L6s hired a year apart with identical packages on paper can end up tens of thousands of dollars apart.

Reported median

$413k

Typical band

$350k to $530k

Shape of the package

Stock is close to half the package and rising. Base has largely stopped growing in proportion.

Moving up from here

L6 to L7 takes four to seven years and many engineers never make it. L6 is a legitimate terminal level and a large share of Amazon's senior engineering population stays there.

L7

Principal Engineer

10 to 18 years

The widest band on the ladder. A junior L7 earns like a strong L6 and a senior L7 approaches the L8 floor.

Principal Engineers set technical direction across an organisation and are handed the problems that are ambiguous enough that nobody has been able to define them yet. The role carries no direct reports and a great deal of influence, and much of the work is written: documents that align organisations are the primary output.

The compensation band at L7 is unusually wide, and that is not noise. Amazon uses L7 to cover a lot of ground, so where you sit inside the band depends on tenure, the size of your organisation, and how large your most recent refresher was. Quoting a single L7 number is close to meaningless.

Reported median

$732k

Typical band

$500k to $900k plus

Shape of the package

Stock is around 60 per cent of the package. Reported bonuses fall to essentially zero.

Moving up from here

L7 to L8 has no reliable timeline and depends on whether a position exists. There is a dedicated Principal Engineer guide covering this level in depth.

L8

Senior Principal Engineer

15 to 25 years

Company wide technical initiatives, with standing equivalent to a director or general manager.

L8 is where the individual contributor ladder becomes genuinely executive. A Senior Principal Engineer advises senior leadership, arbitrates between organisations at a scale where the disagreement is expensive, and is expected to be right about bets whose consequences arrive years later.

Packages at this level typically include multi year retention grants on top of the standard structure, which makes them difficult to compare against anything and difficult to summarise in a table. The figures here should be read as orientation rather than a band you can negotiate against.

Reported median

Around $880k

Typical band

$750k to $1.5M plus

Shape of the package

Heavily stock weighted, frequently with additional retention grants layered on top.

Moving up from here

Amazon has no meaningful L9 for engineers. The next rung is L10, and it is a different kind of appointment rather than a promotion.

L10

Distinguished Engineer

20 plus years

The top of the engineering ladder, sitting at vice president equivalence.

Distinguished Engineers shape Amazon's technical strategy at company scale, and the population is small enough that the role is effectively defined by the person holding it. Several of AWS's foundational services trace back to work at this level.

Compensation is dominated by performance stock units tied to business metrics and by multi year retention structures, so base salary becomes a small fraction of the total. No published figure is reliable here because the sample is tiny and the packages are individually constructed.

Reported median

$1.4M plus

Typical band

$1M to $1.8M plus

Shape of the package

Base is a smaller share of total compensation than at any other level. Performance stock units feature heavily.

Moving up from here

Effectively an appointment. There is a dedicated guide covering the L8 to L10 range in more detail.

Outside the United States

Pay outside the United States

Amazon operates engineering sites well beyond the United States, with substantial populations in London, Dublin, Berlin, Munich, Bangalore, Hyderabad, Chennai, Toronto, and Vancouver. The level framework is identical everywhere. The pay attached to it is not.

United States figures below are reported medians. Everything else is a wider band reflecting much thinner data, and should be treated as orientation rather than a benchmark to negotiate against.

Total compensation by level and region, all figures annual
LevelUnited StatesUnited KingdomIndiaGermanyCanada
L4$188k£75k-£95k₹28L-₹42L€85k-€110kC$130k-C$165k
L5$276k£100k-£130k₹42L-₹70L€110k-€145kC$165k-C$215k
L6$413k£140k-£185k₹70L-₹1.2Cr€150k-€200kC$220k-C$300k
L7$732k£220k-£320k₹1.6Cr-₹2.6Cr€240k-€330kC$350k-C$480k
L8Around $880k£320k+₹2.5Cr+€350k+C$500k+

The vesting schedule applies globally, so the year by year distortion described earlier is not a United States quirk. A London L6 and a Bangalore L6 both see eighty per cent of their equity land in years three and four, and both receive sign on bonuses sized to bridge the gap.

What does change is the equity share of the package. Non United States offers weight base salary more heavily, which flattens the curve somewhat and reduces both the risk and the upside. A London L6 feels the back loading less sharply than a Seattle L6 does, though the mechanism is the same.

After the first grant

Refreshers and the cash election

Your joining grant covers four years. What happens after that, and what smooths the curve in between, is the annual refresher, and it is the least discussed part of Amazon compensation despite eventually becoming most of it.

Refreshers are granted each year based on performance and vest on their own four year schedules, which overlap with the original grant. From roughly year three onward you have several grants vesting simultaneously, and the jagged curve in the year by year table smooths into something steadier. By year five, refreshers rather than your joining grant account for almost all of your equity income.

None of this is contractual. Refresher size varies with performance rating and with how far your current compensation sits below the band Amazon wants you in, which means a large joining grant can actually suppress your early refreshers. This is worth understanding before you optimise an offer purely on the joining number.

In 2026 Amazon introduced an annual election allowing eligible employees to take a portion of the restricted stock unit grant as cash instead, paid on the same schedule the stock would have vested on. It reduces your concentration in a single share price, which is a real benefit if your finances cannot absorb that volatility, and it caps your upside in return. It does not change the back loaded timing, so it addresses the concentration problem rather than the cash flow one.

Using this

What is actually negotiable

Amazon offers have more moving parts than most, which means more places to gain and more places to be quietly worse off than you think. These are the levers in rough order of how much they are worth.

The stock grant is the lever, not the base

Base salary sits inside a band tied to your level and location, and it has limited give. The stock grant carries genuine discretion and compounds through refreshers for as long as you stay. Negotiating hard on base while accepting the first equity number is the most common way candidates leave money behind.

Sign on bonuses are the easiest thing to move

Because they are one time payments that do not affect internal pay equity, sign on bonuses clear approval more easily than anything else in the offer. They are also the component that expires, so treat a large sign on as a loan against your own year three rather than a permanent raise.

Ask what happens in year three

The single most useful question in an Amazon offer conversation is what your total compensation looks like in year three once both sign on bonuses have stopped. If the recruiter's answer relies on a refresher that has not been granted yet, you are being quoted a number nobody has committed to.

Level is worth more than any negotiation within a level

The gap between the L5 and L6 medians is more than $130k a year. No amount of skilful negotiating inside the L5 band closes that. If your loop supported L6, raising it before the offer is finalised matters more than anything else you do.

Compare like for like across four years

An Amazon offer and a Google offer with identical headline numbers behave completely differently, because one back loads and the other front loads. Build a four year table for both before deciding. Candidates who skip this step routinely accept the offer that pays less.

Comparisons

How the structure compares to Google and Meta

The useful comparison between these companies is structural rather than a race between headline numbers. Two offers with identical four year totals can feel completely different to live on and can be worth very different amounts if you leave early.

Compensation structure compared across three large employers
FeatureAmazonGoogleMetaWhy it matters
Base salary cap$350k since 2022No published capNo published capAmazon's old $160k cap is the single most out of date fact on the internet about Amazon pay
Vesting schedule5, 15, 40, 40Front loaded 33, 33, 22, 12Even 25 per cent a yearAmazon is the only one of the three that back loads
Sign on bonusTwo years, sized to bridge the vest gapOne year, usually smallerOne year, usually smallerAmazon's exists because the vesting requires it
Annual bonusEffectively none above L5Around 15 per cent of baseAround 10 to 20 per cent of baseAmazon puts the money in stock instead
Year 1 versus year 4Diverges sharplyDeclines without refreshersBroadly flatOnly Amazon rises steeply across the four years

Google front loads, Meta vests evenly, Amazon back loads. If you are confident about staying four years, the three converge and the headline total is a reasonable guide. If you are not, they diverge sharply, and Amazon is the one that punishes an early exit hardest.

The other structural difference is the annual bonus. Google and Meta both pay meaningful cash bonuses at every level. Amazon's effectively disappears above L5, which means more of your income depends on the share price and less of it is predictable.

Approximate level equivalence across major technology companies
AmazonGoogleMetaNVIDIAMicrosoftIndustry shorthand
L4L3E3IC1 to IC259 to 60Entry level
L5L4E4IC2 to IC361 to 62Mid level
L6L5E5IC3 to IC463 to 64Senior
L7L6 to L7E6 to E7IC565 to 67Staff to senior staff
L8L8E8IC6 to IC768 to 69Principal
L10L9 to L10E9IC7 to IC870 plusDistinguished

The mapping above is where cross company comparisons most often go wrong. Amazon L6 lines up with Google L5 and Meta E5, not with Google L6, because Amazon starts its corporate ladder at L4 while Google starts engineering at L3. A recruiter citing your Amazon level as evidence for a lower offer elsewhere is relying on you not checking.

For the other side of that comparison, see the Google engineer levels guide and the NVIDIA levels guide.

Questions

Frequently asked questions

These come up most often from candidates weighing an Amazon offer against another one, and from engineers already inside trying to work out what the next level is worth.

Is Amazon's base salary still capped at $160,000?

No, and this is the most persistently out of date fact circulating about Amazon compensation. Amazon raised its United States base salary cap from $160,000 to $350,000 in 2022, specifically because the old cap was costing it senior candidates against Google and Meta.

In practice most engineers do not approach the new ceiling. Base salary at L4 sits around $141k and at L6 around $210k. The cap matters most at L7 and above, where the old limit used to force almost the entire package into stock.

What is the 5, 15, 40, 40 vesting schedule?

It is how Amazon vests stock grants across four years: five per cent in year one, fifteen per cent in year two, then forty per cent in each of years three and four. Eighty per cent of your equity arrives in the second half of the grant.

Almost every other large technology company vests evenly or front loads. Amazon does the opposite, and it does it deliberately as a retention mechanism. Leaving at the two year mark means walking away from four fifths of the equity you were promised.

Why does Amazon pay sign on bonuses in both year one and year two?

Because without them the first two years of an Amazon offer would look uncompetitive. With only twenty per cent of the grant vesting across years one and two, the sign on bonuses exist to fill that hole and make the offer comparable at the point where you are deciding.

The important thing to understand is that they stop. Your year three compensation contains no sign on bonus at all, which is fine because that is when the large vests begin. The risk is treating the year one number as your steady state salary, because it is not, and it is the number recruiters quote.

Does Amazon have an L9?

Not in any meaningful sense for engineers. The engineering ladder runs L4, L5, L6, L7, L8, and then L10. L9 exists on paper as something close to a placeholder and is not a rung people are promoted into.

This trips up cross company comparisons, because guides that assume a continuous numbering sequence end up mapping Amazon levels one rung off. L10 Distinguished Engineer is the top of the individual contributor ladder.

Is Amazon L6 the same as Google L6?

No, and assuming so is an expensive mistake. Amazon L6 maps roughly to Google L5 and Meta E5. The higher number does not mean higher seniority, because the two ladders simply start counting in different places.

Amazon starts its corporate ladder at L4 while Google starts engineering at L3, which accounts for most of the offset. When a recruiter cites your level as evidence for an offer, check the mapping rather than the number.

Can I take part of my Amazon stock grant as cash?

As of 2026 Amazon offers eligible employees an annual election to take a portion of the restricted stock unit grant as cash instead, paid out on the same schedule the stock would have vested on.

It reduces your exposure to the share price, which is a genuine benefit if your finances cannot absorb that volatility, and it caps your upside if the stock performs. It does not change the back loaded timing, so it solves the concentration problem rather than the cash flow problem.

What is the highest paying jump on the Amazon ladder?

L6 to L7 in absolute terms. The median moves from roughly $413k to roughly $732k, an increase of more than $300k, which is larger than the entire L4 package.

In proportional terms L5 to L6 is comparable and far more achievable. It is also the promotion most engineers can realistically plan for, since L7 depends on organisational scope existing rather than on your performance alone.

How does an Amazon offer compare to a Google offer with the same total?

Badly in years one and two, better in years three and four. Google front loads its vesting at roughly thirty three per cent in the first year, so a Google offer pays most in the period where an Amazon offer pays least.

The only sensible way to compare them is to build a four year table for each and look at the cumulative total, then discount for the risk that you leave before year three. If you have any real doubt about staying three years, the Amazon offer is worth materially less than its headline suggests.

What is a Bar Raiser and can they block my offer?

A Bar Raiser is a trained interviewer from outside the hiring team who sits on the loop to protect hiring standards. They hold a veto, and they use it.

The role exists to stop hiring managers lowering the bar to fill a role quickly. In practice it means one of your interviewers has no stake in whether the position gets filled, which changes how that conversation goes. The interview process guide covers how the loop is structured.

Are Amazon stock refreshers guaranteed?

No. Refreshers are granted annually based on performance and are the mechanism that keeps your compensation from falling off once the initial grant is exhausted. They are not contractual and their size varies considerably.

This matters more at Amazon than elsewhere because the initial grant is back loaded. By the time you are five years in, refreshers rather than your joining grant determine almost all of your compensation, and no part of that was promised at the point you signed.

Does Amazon publish its levels or salary bands officially?

No. Amazon does not publish its internal level structure, its promotion rubric, or its compensation bands. United States job postings do carry legally required pay ranges in several states, which is the only official data available and covers base salary only.

Everything else here comes from crowdsourced compensation reporting and community accounts. It is good enough to plan a negotiation around and specific enough to be wrong in an individual case.

Is it worth joining Amazon if I might leave within two years?

Financially, probably not, and this is the clearest practical conclusion on this page. Leaving before the year three vesting cliff means collecting twenty per cent of your equity while the sign on bonuses that made years one and two look reasonable have already been paid and spent.

The structure is designed to make exactly that outcome unattractive. If you are confident you want three or more years, the back loading works in your favour and the later years are genuinely competitive. If you are not, an offer that vests evenly is worth more to you at the same headline number.

Sourcing

Where these figures come from

Amazon does not publish its level structure, its promotion rubric, or its compensation bands. The only official data available is the base salary range that several United States states legally require on job postings, and that covers base alone.

Everything else here is drawn from crowdsourced compensation reporting and community accounts, cross checked between sources. The year by year figures are illustrative packages built by applying the published vesting schedule to reported medians, not individual offers, and they exclude refresher grants so that the shape of the original grant is visible.

Reviewed in August 2026. Amazon compensation moves with the share price and with periodic changes to the pay structure, so treat specific numbers as a snapshot rather than a fixed band.

Get leveled correctly before you negotiate anything

The gap between the L5 and L6 medians is more than $130,000 a year. No amount of negotiating inside a band closes that. Lead your resume with the systems you owned and the results that followed rather than the responsibilities you were assigned.