Compensation basics for tech offers¶
For anyone expecting or holding a tech offer. Use it to split an offer into its parts, compute its Year 1 and 4-year value, and compare offers on the same basis.
The parts of an offer¶
| Component | What it is | How it is paid | Moves for new grads? | Watch out |
|---|---|---|---|---|
| Base salary | Fixed yearly pay | Every paycheck | Little. Bands are set per level | Recurs every year. Raises and some 401(k) matches are a % of it. For F-1 holders it sets the H-1B lottery level |
| Annual bonus | A target % of base, paid on performance | Usually once a year | No. The % is fixed by level (Hello Interview) | It is a target, not a promise. Ask what last year's payout was |
| Equity (RSUs) | Company shares granted at hire | As shares on each vest date | Sometimes, mostly with a competing offer | Value moves with the share price. Ask what price converted dollars into shares |
| Sign-on bonus | One-time cash | Lump sum or split. Amazon pays a Year 1 and a Year 2 sign-on | The most common move | Prorated repayment if you leave early is common (Doody). Withheld at a flat 22% federal rate |
| Relocation | Cash or a managed move | Lump sum or reimbursement | Sometimes | Repayment clauses, same as sign-on |
| Refreshers | New equity grants after you join | Yearly or by performance | Not part of the offer | Front-loaded schedules depend on them for Years 3 and 4. Ask how they are sized |
| 401(k) match | Employer money into your retirement account | Each paycheck | No | Ranges from 2% of base to $12,250 a year at big tech (table) |
| ESPP | Buy company stock at a discount | Payroll deduction | No | Microsoft lists a 10% discount; Apple and Nvidia 15% |
| Stock options | The right to buy shares at a fixed strike price (startups) | You pay to exercise | Sometimes | Usually expire about 90 days after you leave (Levels.fyi) |
| Intern pay | Hourly rate plus housing or a stipend | Paycheck | Rarely. Housing and dates move more | Convert to a total: $50 an hour x 40 hours x 12 weeks = $24,000 before housing |
Read total compensation correctly¶
- Total compensation (TC) for one year = base + target bonus + the stock that vests that year + the sign-on paid that year.
- Always compute two numbers: Year 1 TC and the 4-year average. Front-loaded vesting makes Year 1 look bigger than later years. Back-loaded vesting does the opposite.
- On Levels.fyi, the stock column for Google, Uber and Nvidia is first-year stock (front-loaded). For Amazon, Meta and Microsoft it is a yearly average. Do not compare the two columns directly.
- Levels.fyi called front-loaded vesting "one of the biggest changes to tech compensation in years" (Levels.fyi, Sept 2025). Meta kept even vesting and is "willing to pay less in Y1 given the stability" (Levels.fyi, June 2025).
- Refreshers fill Years 3 and 4 on front-loaded schedules. Ask when the first one comes and how it is sized. Nvidia guarantees minimum refreshers (Levels.fyi).
Vesting schedules by company¶
As shown on Levels.fyi company pages and its front-loaded vesting article, as of Oct 2026. Companies use more than one schedule. Your offer letter is the source of truth.
| Company | % vested in Years 1 / 2 / 3 / 4 | How often | Notes | Data |
|---|---|---|---|---|
| 38 / 32 / 20 / 10 | Monthly, no cliff (about 3.17% a month in Year 1) | Front-loaded. Older grants used 33/33/22/12 and 36/28/20/16 | Levels.fyi | |
| Meta | 25 / 25 / 25 / 25 | Quarterly (6.25% a quarter) | Even. Confirm any cliff in your offer | Levels.fyi |
| Amazon | 5 / 15 / 45 / 35 (listed first) or 5 / 15 / 40 / 40 (alternate) | Annual. In the 40/40 version, 20% every 6 months in Years 3 and 4 | Back-loaded. The Year 1 and Year 2 sign-on fills the gap | Levels.fyi |
| Microsoft | 25 / 25 / 25 / 25 (main) | Annual. Alternates: 20% a year over 5 years, or 25% after Year 1 then quarterly or monthly | Several variants. Ask which one applies | Levels.fyi |
| Apple | 25 / 25 / 25 / 25 | Every 6 months (12.5%). Alternate: 25% at Year 1, then monthly | Even | Levels.fyi |
| Netflix | 25 / 25 / 25 / 25 | 25% at Year 1, then monthly | Pay is mostly cash. Netflix says it pays "personal top of market" (culture page) | Levels.fyi |
| Nvidia | 40 / 30 / 20 / 10 (main). Alternate: 25% a year | Quarterly, no cliff | Front-loaded. Minimum refreshers guaranteed | Levels.fyi |
| Uber | 35 / 28 / 22 / 15 (main). Alternates: 35/30/20/15, 25/25/25/25, 55/15/10/20 | Monthly | Front-loaded | Levels.fyi |
| DoorDash | 40 / 30 / 20 / 10 | See offer | Front-loaded | Levels.fyi article |
| Oracle | 40 / 30 / 20 / 10 | See offer | Newly adopted (Sept 2025 article) | Levels.fyi article |
| Airbnb | 35 / 30 / 20 / 15 | See offer | Front-loaded | Levels.fyi article |
| 50 / 33 / 17 over 3 years (new hire grant) | Quarterly, no cliff | 3-year schedule. Performance grants vest 33/33/33 | Levels.fyi article | |
| Flipkart (India) | 25% at Year 1, then monthly | 1-year cliff | Even | Levels.fyi |
What a cliff means: a 4,800-share grant over 4 years with a 1-year cliff and monthly vesting after it gives you 1,200 shares at month 12, then 100 a month (Tech Interview Handbook). Leave at month 11 and you get none.
Entry-level pay by company¶
Levels.fyi medians, fetched Oct 4, 2026, covering everyone at that level (new grads and people with more experience alike). Use them to see the range, not as your personal target. Level names are explained in the level mapping table.
| Company | Entry level | Total | Base | Stock | Bonus | Data |
|---|---|---|---|---|---|---|
| L3 | $216K | $160K | $39.3K first year | $16.3K (bonus and sign-on) | Levels.fyi | |
| Amazon | L4 (SDE I) | $184K | $139K | $33.4K a year | $11.2K | Levels.fyi |
| Meta | E3 | $181K | $144K | $31.1K a year | $6.1K | Levels.fyi |
| Microsoft | 59 | $161K | $128K | $23.7K a year | $9.7K | Levels.fyi |
| Apple | ICT2 | $167K | $141K | $22.2K a year | $3.3K | Levels.fyi |
| Nvidia | IC1 | $169K | $142K | $18.7K first year | $8.5K | Levels.fyi |
| Uber | L3 | $204K | $153K | $29.9K first year | $20.6K (bonus and sign-on) | Levels.fyi |
| Netflix | L3 | $214K | $204K | $6.8K | $3.3K | Levels.fyi |
| Amazon India | L4 | ₹27.5 lakh | ₹20.5 lakh | ₹4.95 lakh a year | ₹2.01 lakh | Levels.fyi |
| Google India | L3 | ₹35.5 lakh | ₹25.1 lakh | ₹9.2 lakh first year | ₹1.16 lakh | Levels.fyi |
| Flipkart | SDE 1 | ₹22.4 lakh | ₹19.3 lakh | ₹1.94 lakh a year | ₹1.18 lakh | Levels.fyi |
| Google UK | L3 | £118K | £89.4K | £22.6K first year | £5.6K | Levels.fyi |
| Amazon UK | L4 | £75.5K | £60.6K | £8.7K a year | £6.2K | Levels.fyi |
Market context:
- The US entry-level median total comp on Levels.fyi was $155K in 2025, up 1.64% from $152K in 2024 (Levels.fyi 2025 report).
- Pay splits into tiers. Gergely Orosz's US entry-level medians: $105K at local companies, $180K at Big Tech, $208K at top scaleups and hedge funds (Pragmatic Engineer). Know which tier each offer is in before you compare.
- Trading firms pay new grads above big tech. Jugal's Nov 2025 estimates put Jane Street at $250K to $300K and Hudson River Trading at $250K to $400K (post). Cross-check with Levels.fyi.
Your level matters more than your counter¶
- The level sets the band, and the band caps what any negotiation can reach. Candor calls level the biggest lever (Candor).
- Amazon's level cannot change after the loop (Levels.fyi). Raise level questions before the final round ends, not after the offer.
- A master's degree barely moves new grad pay at Google: L3 base for bachelor's and master's hires was within $5,000 in most locations (Levels.fyi, 2020).
- With 1 to 3 years of experience, ask the recruiter which level you are being considered for during the screen. Then prepare your past scope as evidence for that level (Behavioral story bank). If the offer comes in a level lower, use S16c.
- Compare ladders across companies before you compare money. Open the Levels.fyi level comparison, swap in your companies, and check that your offers sit at the same rung. Google L3 against Amazon L5 is not a fair comparison.
How the share price changes your grant¶
Offers state equity in dollars. You receive shares. The conversion price decides what you actually get.
- Meta converts using the average share price of the previous calendar month. Amazon projects equity value at various vesting dates (Hello Interview).
- Amazon's offers target comp assuming the stock rises 10% to 15% a year (Doody). The later-year totals in an Amazon offer may assume growth that may not happen.
- Ask every recruiter: "What share price did you use, and does the total assume any stock growth?" (S12).
Compare offers step by step¶
- Write every offer into the comparison sheet. One row per offer.
- For each of Years 1 to 4, add: base + target bonus + (grant value x that year's vest %) + sign-on paid that year.
- Compute Year 1 and the 4-year average.
- Rerun the stock at 0.7x and 1.3x of the grant value. For private stock, also run it at zero.
- Add benefits in dollars: 401(k) match, ESPP discount, HSA, relocation (Benefits).
- Adjust for taxes: state income tax, and the F-1 FICA exemption if it applies (Taxes).
- Score the non-money factors from Tech Interview Handbook: product and team, company prospects, career growth, culture, work-life balance, mobility. Add visa support.
- Check your sheet with the Levels.fyi calculator. It takes base, grant, an editable vesting schedule, Year 1 and Year 2 sign-on, bonus, refreshers and stock growth, and compares offers side by side.
Worked example¶
Illustrative numbers, not real offers. Three new grad offers with the three common shapes. Raises and refreshers are left out.
| Input | Offer A (Amazon-style) | Offer B (Google-style) | Offer C (Meta-style) |
|---|---|---|---|
| Base | $140K | $150K | $145K |
| Equity grant (4 years) | $120K | $160K | $140K |
| Vesting | 5 / 15 / 40 / 40 | 38 / 32 / 20 / 10 | 25 / 25 / 25 / 25 |
| Sign-on | $45K Year 1, $35K Year 2 | $20K | $25K |
| Target bonus | None | 15% ($22.5K) | 10% ($14.5K) |
| Result | Offer A | Offer B | Offer C |
|---|---|---|---|
| Year 1 | $191K | $253.3K | $219.5K |
| Year 2 | $193K | $223.7K | $194.5K |
| Year 3 | $188K | $204.5K | $194.5K |
| Year 4 | $188K | $188.5K | $194.5K |
| 4-year average | $190K | $217.5K | $200.75K |
| 4-year average, stock at 0.7x | $181K | $205.5K | $190.25K |
| 4-year average, stock at 1.3x | $199K | $229.5K | $211.25K |
The math, in thousands:
Year 1
A: 140 base + 6 stock (5% of 120) + 45 sign-on = 191
B: 150 base + 60.8 stock (38% of 160) + 20 sign-on + 22.5 bonus = 253.3
C: 145 base + 35 stock (25% of 140) + 25 sign-on + 14.5 bonus = 219.5
Year 4
A: 140 base + 48 stock (40% of 120) = 188
B: 150 base + 16 stock (10% of 160) + 22.5 bonus = 188.5
C: 145 base + 35 stock (25% of 140) + 14.5 bonus = 194.5
4-year average = (Y1 + Y2 + Y3 + Y4) / 4
A: (191 + 193 + 188 + 188) / 4 = 190
B: (253.3 + 223.7 + 204.5 + 188.5) / 4 = 217.5
C: (219.5 + 194.5 + 194.5 + 194.5) / 4 = 200.75
What it shows:
- B beats C by $33.8K in Year 1, but only by $16.75K a year over 4 years.
- B's Year 4 ($188.5K) falls below C's ($194.5K) unless refreshers fill it. Ask B how refreshers work.
- A has the lowest Year 1 but stays flat, because the two sign-ons cover the back-loaded first two years.
- The ranking holds at 0.7x and 1.3x here. When two offers end up close, decide on team, growth and visa support.
Benefits that change the math¶
The IRS 2026 limit for your own 401(k) contributions is $24,500; the total with employer money is $72,000 (IRS). Matches below are as listed on Levels.fyi benefits pages (crowdsourced). Confirm in the benefits guide that comes with your offer.
| Company | 401(k) match as listed | Match in 2026 dollars | Other listed benefits | Data |
|---|---|---|---|---|
| Amazon | 50% on the first 4% of base. The match vests after 3 years | 2% of base: $2,800 on a $140K base | Relocation listed at $7,000. HSA $500. No ESPP listed | Levels.fyi |
| The greater of 100% up to $3,000, or 50% of contributions up to the IRS limit | Up to $12,250 if you contribute $24,500 | Student loan match up to $2,500 a year. HSA $1,000 ($2,000 family) | Levels.fyi | |
| Meta | Dollar for dollar up to 50% of the IRS limit | Up to $12,250 if you contribute at least $12,250 | Mega backdoor Roth listed | Levels.fyi |
| Microsoft | 50% up to the IRS limit | Up to $12,250 if you contribute $24,500 | ESPP up to 15% of base at a 10% discount | Levels.fyi |
| Apple | On the first 6% of base: 50% under 2 years, 75% at 2 to 5 years, 100% after 5 | 3% of base in Years 1 and 2: $4,500 on a $150K base | ESPP up to 10% of base at a 15% discount | Levels.fyi |
| Nvidia | 100% up to $6,000 | Up to $6,000 | ESPP up to 15% of base at a 15% discount | Levels.fyi |
Watch out: Some Levels.fyi benefits pages still show old IRS limits (Google's headline says $19,500, Microsoft's $23,000, Meta's $10,250). Recompute with $24,500.
How to use it:
- On a $140K base, the gap between a 2% match and a $12,250 match is $9,450 a year. Put it in your 4-year sheet.
- A 15% ESPP discount means you pay $85 for $100 of stock: about $17.65 of gain per $100 you put in, before tax, if you sell at once.
- A match only counts if you contribute enough to get it. Budget for that in your take-home.
Taxes that change take-home¶
US federal and state rules as of Oct 2026. Not tax advice.
- Sign-on and bonuses are supplemental wages, withheld at a flat 22% federal rate (37% above $1 million) (IRS Publication 15). A $50K sign-on arrives as about $39K before state tax and FICA. If your bracket is above 22%, you owe the rest when you file.
- RSUs are taxed as wages when they vest, whether you sell or not (IRS Publication 525). Check what your employer withholds on vest income.
- State income tax changes the comparison. Washington has no individual income tax today; a 9.9% tax on income above $1 million starts Jan 1, 2028 (WA DOR). Compare a Seattle offer and a Bay Area offer after state tax.
- F-1 students who are nonresident aliens pay no Social Security or Medicare tax (7.65%) on CPT and OPT wages (IRS). It ends when you become a resident for tax purposes (substantial presence test) or change status, for example to H-1B.
- Startup early exercise: an 83(b) election must be filed within 30 days (IRS Publication 525). Miss the window and the choice is gone.
- India: compare the old and new regimes with the Income Tax Department calculator.
Startup equity¶
- Early-stage private companies mostly grant options. Larger companies grant RSUs (Holloway Guide).
- The 409A valuation sets your strike price. It is usually far below what investors paid, often a third or less (Holloway Guide).
- Options usually expire 10 years after grant, but leaving often gives you about 90 days to exercise (Levels.fyi).
- Your percentage ownership matters more than your share count (Levels.fyi).
- Big tech recruiters discount startup paper value when you use it as a competing offer: about 30% (Google ex-recruiter, 2020) up to "sometimes by 75%" (Levels.fyi guide, 2025).
- Run the startup offer at zero equity too. If you would still take it at zero, the equity is upside.
- Some YC startup salaries beat big tech, per Jugal (post). Compare the cash first.
Questions to ask any startup (from Levels.fyi and the Holloway Guide):
- How many fully diluted shares are outstanding? (Gives your ownership %.)
- What is my strike price, and what is the latest 409A?
- What did the last round's investors pay per preferred share?
- What is the vesting schedule and cliff?
- What is the valuation, stage and runway?
- What liquidation preferences sit ahead of common stock?
- How long can I exercise after I leave?
- Is early exercise allowed? Are there secondary sales?
Intern offers¶
- Levels.fyi pay tiers (2023 data): general companies $20 to $35 an hour; most tech companies $45 to $60, some over $65 (Netflix, Kensho, Snap, Nuro); trading and finance $75 to $120, with Radix Trading and Vatic Investments at $150 (Levels.fyi).
- Perks seen in the same data: housing $1,000 to $6,000 a month, intern sign-on $1,000 to $25,000, relocation $500 to $8,000.
- Check current listings on Levels.fyi internships before you compare.
- Convert each intern offer to one number: hourly rate x 40 x weeks, plus housing or stipend, plus sign-on and relocation.
- Check whether a housing stipend covers real costs. For the Bay Area, fill in the budget planner from my Bay Area monthly expenses post and compare its monthly total with the stipend.
- Intern rates are mostly fixed. Ask about housing, relocation and dates instead (S16b).
- A returning intern should not expect a big bonus just for returning (Google ex-recruiter, 2020). Use the return offer as your competing offer in fall recruiting (Internships).
India: CTC and in-hand pay¶
CTC (cost to company) is everything the employer spends on you. It is not what reaches your bank account (ClearTax).
| CTC part | In your monthly pay? | What to ask |
|---|---|---|
| Basic plus DA | Yes | Is it at least 50% of total pay, as the Labour Codes require since Nov 21, 2025? (ClearTax) |
| HRA and special allowance | Yes | How is the rest of fixed pay split? |
| Variable or performance pay | Once or twice a year, if paid | What is the target, and what did people get last year? |
| Employer PF | No. It goes to your PF account | Is it inside CTC or on top? |
| Gratuity | No. Paid later, when you leave, if eligible | Is it counted inside CTC? |
| Insurance | No | Who is covered? |
| Joining bonus, relocation | Once | When is it paid, and what is the clawback? |
| RSUs or ESOPs | When they vest or when you sell | What is the schedule, and the strike price for ESOPs? |
ClearTax's example turns ₹21 lakh CTC into about ₹1,40,458 a month in hand. Compare offers on monthly in-hand plus vested stock, never on headline CTC. Full steps: India offers.
UK and Europe¶
- Levels.fyi UK medians: Google L3 £118K total, Amazon L4 £75.5K (table above).
- Ask for the employer pension % and whether it applies to your full salary. The legal minimum is 3% from the employer on a band of earnings (GOV.UK).
- European data: TechPays, Gergely Orosz's Europe comp site, covers the UK, Netherlands, Germany, Belgium, Luxembourg, Estonia and Hungary. Levels.fyi bought it on May 12, 2026 and plans to add monthly, net and local-currency pay (Levels.fyi). Look up your company and country on both before you compare.
- Visa salary floors and EU pay transparency: UK and Europe offers.
Offer comparison sheet¶
Copy into a spreadsheet. One row per offer.
Company | Level | City | Base | Bonus % | Grant (4 yr) | Vesting Y1/Y2/Y3/Y4 | Share price used | Sign-on Y1 | Sign-on Y2 | Relocation | 401(k) match $ | ESPP discount | State tax | Y1 TC | Y2 TC | Y3 TC | Y4 TC | 4-yr avg | Avg at 0.7x stock | Avg at 1.3x stock | Visa support | Team | Deadline
Formula for each year N:
Year N TC = Base + (Base x Bonus %) + (Grant x Vest % in year N) + Sign-on paid in year N
Checklist¶
- Look up the level and the Levels.fyi median for each company.
- Write down the vesting schedule and cliff for each offer.
- Ask each recruiter what share price converted the grant, and whether the total assumes growth.
- Fill the comparison sheet: Year 1, Years 2 to 4, 4-year average.
- Rerun the stock at 0.7x and 1.3x (and at zero for private stock).
- Add the 401(k) match and ESPP in dollars.
- Adjust for state tax and your FICA status.
- Read the sign-on and relocation repayment terms.
- Rank the offers on money, then score team, growth and visa support.