The Full Guide to Amazon Salary Levels
Amazon is one of the world’s largest companies, and it pays its employees well. To help you better understand the Amazon salary structure, we’ll discuss the following:
- Amazon Salary Levels.
- Amazon Base Salary.
- Amazon Sign-on bonuses.
- Amazon Equity Component.
- Amazon Salaries by Position.
- Amazon Salary by Department.
Let’s get started.
Table of Contents
We’ll also discuss how to negotiate a better salary. If you have valuable expertise and an outstanding resume, you might get a lower offer than you deserve if you choose to avoid the salary negotiation process.
Let’s dive in.
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How Does Amazon's Salary Model Work?
Amazon salary offers are usually listed in the following way:1. A base pay. 2. A bonus for joining. 3. Company equity is issued in the form of restricted stock units(RSUs). There are a total of 12 pay levels at Amazon, and they vary by position.
The lower pay levels (4 and 5) are usually granted to newly hired employees, whereas senior employees are usually granted higher levels.
Amazon Base Salary
To a certain extent, Amazon offers a competitive base salary (see below). You can conduct research to determine whether the pay you’re offered is fair. The most distinctive feature of Amazon job offers is that, depending on division and region, base salaries are often capped at between $165,000 and $175,000.
If your base salary exceeds the cap, they’ll start enhancing the offer with stock and sign-on bonuses. Greater sign-on bonuses and RSU awards can be demanded in more senior positions, which generally have lower base salaries (when compared to some other big tech firms).
They can be quite flexible if you’re under the base salary cap and usually don’t make significant changes to base pay, although they will raise it to a certain amount.
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Amazon Sign-on bonuses
Like equity, sign-on bonuses can range from a small sum to six figures. The sign-on bonus is a method for Amazon to make up for the strict vesting schedule they use for equity (RSUs) by helping you bridge the gap between your first payment and your first RSU vesting date.
As a result of their strict new-hire equity vesting schedule, your total salary in the first year would be quite low without some type of sign-on bonus, hence the first year sign-on bonus is often bigger than the second year.
While your equity will vest more in Year 2, the sign-on incentive will be less. Pretty adaptable! And once you surpass the base wage cap, this is especially true because a lot more equity will be added. Since a higher shortfall in years 1 and 2 results from increased equity, they increase sign-on bonuses to help close the gap.
However, it is uncertain if you must repay your sign-on bonus if you depart before the end of the year.
On occasion, Amazon will combine your Year 1 sign-on incentive with your first paycheck. In the event that you leave within the first year, you’ll most likely have to repay some or all of it.
Ask your recruiter what conditions are placed on your sign-on bonus to avoid unpleasant surprises if you decide to quit before Year 2.
When Amazon pays out your sign-on bonus on a monthly basis, you might not have to pay it back if you quit your job too soon (you only received a proportional amount based on how long you worked in the comapny).
The Year 2 sign-on incentive appears to be distributed frequently on a monthly basis.
Amazon Equity Component
The equity part of an Amazon job offer can be “not very much” or “wowzers, that’s a lot of equity!” based on the position and whether you exceed the base salary cap.
Since the base salary cap nearly forces Amazon to offer significant stock grants to make up for it, your discussion may end up being solely centered on equity and sign-on incentives.
Comparable to other companies, Amazon has a unique equity component. It is set up to encourage dependable workers to remain on the job longer so they can receive the majority of their equity rewards. Additionally, it gives Amazon time to fire underperforming workers before they vest the majority of their ownership.
Amazon salary levels
Every job title and position at Amazon is divided into pay levels, each of which has a range of salaries. At Amazon, there are 12 tiers. Newly hired full-time employees begin at Level 4, where their annual salaries range from $50,000 to $70,000. Senior VPs pay sometimes go over $1 million per year, the highest salary ranking is Level 11 (Jeff Bezos is the only Level 12).
Years of experience are equated with each level on Amazon as follows:
Amazon Level 4 Salary Range
The Amazon L4 requires one to three years of experience. The yearly salary range for this level ranges from 66,000$ for an area manager to 238,000$ to an applied scientist.
Amazon Level 5 Salary Range
The Amazon L5 requires three to ten years of experience. The yearly salary for this level ranges from 90,000$ for an area manager to 302,000$ to an applied scientist.
Amazon Level 6 Salary Range
The Amazon L6 requires eight to ten+ years of experience. The yearly salary for this level ranges from 170,000$ for an accountant to 382,000$ to a management consultant.
Amazon Level 7 Salary Range
The Amazon L7 requires experience of at least ten years. Although at this level, Amazon rarely hires outside talent and prefers to promote from within. The yearly salary for this level ranges from 297,000$ for a financial analyst to 467,000$ to a technical program manager.
Amazon Salaries by Position
Salary levels vary based on job titles, positions and locations. The following is a list of popular job positions at Amazon and their average salary range.
Amazon Warehouse Worker Salary
As a warehouse associate, you will get orders ready for customers. As a part of this job, you will select, pack, and ship orders. Including and limited to receiving and putting away inventory, using scanners to read bar codes and loading cargo to trucks.
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Amazon salary: The salary for this position ranges from 19,000$ to 52,000$ a year.
Amazon Driver Salary
An Amazon delivery driver is in charge of transporting and distributing Amazon products, merchandise, and other items safely and on time. It entails picking up small shipments within his local area.
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Amazon salary: The salary for this position ranges from 24,000$ to 79,000$ a year.
Amazon Program Manager Salary
As a Program Manager, you will be responsible for managing and executing projects that support the company’s strategic goals. You will work with cross-functional teams to ensure that projects are completed on time and within budget.
Amazon salary: The salary for this position ranges from $88k to $181k
The ideal candidate has excellent problem-solving skills and a track record of delivering results.
Taking the Amazon Program Manager Test?
Visit Amazon’s Program Manager page to find more information about the position.
Amazon Maintenance Technician Salary
As a Maintenance Technician at Amazon, you will be responsible for maintaining the physical appearance and functionality of a warehouse. You will work with a team of engineers to ensure that all equipment is running smoothly. This is a challenging and exciting position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $51k to $65k
Taking the Amazon Maintenance Technician Test?
Check out the Amazon Maintenance Technician page to find more information about the position.
Amazon Software Development Engineer Salary
In your role as an Amazon Software Development Engineer or software engineering manager, you will be responsible for developing and maintaining the software that powers the company’s e-commerce platform.
You will work with a team of engineers to ensure that all software is up-to-date and compliant with industry standards. This is a challenging and exciting position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $170k to $969k.
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Click on the Amazon Software Development Engineer page for more information about the position.
Amazon Area Manager Salary
Are you looking for an exciting and challenging new opportunity? Amazon may be the perfect fit for you! As an Area Manager, you will be responsible for overseeing all aspects of operations within your assigned area. You will work with a team of managers to ensure that all goals are met, and customers are satisfied. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $66k to $100k
Taking the Amazon Area Manager Assessment?
You can visit the Amazon Area Manager page to find more information about the position.
Amazon AWS Solution Architect Salary
As an AWS Solution Architect at Amazon, you will be responsible for designing and building cloud-based solutions that meet the needs of the company’s customers. You will work with a team of engineers to ensure that all systems are compliant with industry standards. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $158k to $454k.
Taking the AWS Assessment Test?
Read the AWS Solution Architect page to find more information about the position.
Amazon Financial Analyst Salary
If you’re looking for a challenging and exciting new opportunity, Amazon may be the perfect fit for you! As a Financial Analyst, you will be responsible for providing financial analysis and recommendations to management. You will work with a team of professionals to ensure that all financial goals are met. This is a challenging and rewarding position that offers many opportunities for growth.
Taking the Amazon Financial Analyst Test?
Amazon salary: The salary for this position ranges from $88k to $297k.
The ideal candidate has excellent problem-solving skills and a track record of delivering results.
Visit the Amazon Financial Analyst page to find more information about the position.
Amazon Operations Manager Salary
The Amazon Operations Manager position is a challenging and exciting prospect that offers many opportunities for growth. As an Operations Manager, you will be responsible for overseeing all aspects of operations within your assigned area. You will work with a team of managers to ensure that all goals are met, and customers are satisfied. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $125k to $174k.
Taking the Amazon Management Test?
Visit the Amazon Operations Manager page to find more information about the position.
Amazon Cloud Support Engineer Salary
As an Amazon Cloud Support Engineer, you will be responsible for providing support to customers using Amazon Web Services. You will work with a team of engineers to ensure that all systems are running smoothly and compliant with industry standards. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The average annual salary for this position ranges from $95k to $130k.
Check out the Amazon Cloud Support Engineer page to find more information about the position.
Amazon Business Analyst Salary
The Amazon Business Analyst position is a challenging and exciting opportunity that offers many opportunities for growth. As a Business Analyst, you will be responsible for providing financial analysis and recommendations to management. You will work with a team of professionals to ensure that all financial goals are met. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The salary for this position ranges from $92k to $136k
The ideal candidate has excellent problem-solving skills and a track record of delivering results.
Taking the Amazon Assessment?
Go to the Amazon Business Analyst page to find more information about the position.
Amazon Control Systems Technician Salary
The Amazon Control Systems Technician position is a challenging and exciting opportunity that offers many opportunities for growth. As a Control Systems Technician, you will be responsible for maintaining all of the company’s control systems. You will work with a team of engineers to ensure that all systems are running smoothly and compliant with industry standards. This is a challenging and rewarding position that offers many opportunities for growth.
Amazon salary: The total compensation salary for this position ranges from $93k to $129k
Taking the Amazon Control Systems Test?
Visit the Amazon Control Systems Technician page to find more information about the position.
Amazon Salary By Department
Another way to look at salaries at Amazon is to divide them by departments. Amazon has a variety of departments with different salary levels, from simple Customer service and Warehouse departments to more complex high-paying roles in Research & Development, Engineering, and IT.
Here is a list of the main Departments at Amazon and their current salary levels:
Amazon Business Development Department Salary
To put it simply, The function of the Amazon business development department refers to the concepts, activities, and initiatives aimed at making the company more successful. A number of factors contribute to this, including revenue growth, expansion of the business, and increased earnings.
Amazon salary: $143,390.
Amazon hourly rate: $68.94.
Amazon Research & Development Department Salary
The role of the Amazon R&D department is to ensure a business’s competitiveness by analyzing the market and introducing new products and services or upgrading existing ones. The future success of the company rests largely on R&D.
Amazon salary: $135,417.
Amazon hourly rate: $65.10.
Amazon Engineering Department Salary
The Amazon engineering department develops innovative technologies that include designing, introducing, preserving, and improving production.
Amazon salary: $128,204.
Amazon hourly rate: $61.64.
Amazon IT Department Salary
The Amazon IT department is responsible for setting up, overseeing, and maintaining Amazon’s technology systems and services.
Amazon salary: $122,131.
Amazon hourly rate: $58.72.
Amazon Marketing Department Salary
The Amazon marketing department is the powerhouse that drives a business’s promotional efforts. By doing so, it increases Amazon’s brand recognition, resulting in more customers buying services and products from the company.
Amazon salary: $118,362.
Amazon hourly rate: $56.90.
Amazon Finance Department Salary
The Amazon finance department is in charge of obtaining and handling funds on behalf of the company. The department manages the income and expenditure, as well as ensuring that the business is running with minimum financial hiccups.
Amazon salary: $99,604.
Amazon hourly rate: $47.89.
Amazon Customer Service Department Salary
Amazon Customer service provides assistance to customers before and after they purchase or use Amazon products. The customer service department includes activities such as making product suggestions and resolving technical issues and customer complaints.
Amazon salary: $36,017.
Amazon hourly rate: $17.32.
Amazon Warehouse Department Salary
The role of the Amazon Warehouse department consists of storing items for later use in times of high demand. It helps minimize revenue losses and ensures price stability for the end customer; also, it helps to cut costs on delivery, transportation, and shipping.
Amazon salary: $33,440.
Amazon hourly rate: $16.08.
Amazon Salary Negotiation
When starting a salary negotiation it is common for Amazon recruiters to ask about your wage history or current salary. It is not a good idea to disclose your current salary to them.
It is also common for them to inquire about your desired income.
When they make you the offer, it will often be difficult to understand because it will include the average sign on bonus and equity RSUs.
Therefore, it would be better for you to consider their proposal carefully and determine your future compensation before starting negotiations.
Your first step should be to find out if you’re close to or at the base salary ceiling which you can easily find on the internet by looking at Amazon’s job listings. You should know ahead of time whether you can negotiate your base salary or only equity and signing bonuses.
Once your counter on base salary, negotiate on the other components (sign-on bonus and equity).
You should also make sure that if you ask for and receive more equity, you also try to increase your sign-on bonus.
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