Amazon stands out from the other FAANG companies thanks to its unique compensation strategy. When it comes time to consider your offer, you’ll need to understand how Amazon organizes compensation thoroughly.
Have you ever wondered what your pay at Amazon would be like? There are various job levels at which you can be hired, so if you’re looking for a job with this company, I must say that you’re in luck. Continue reading to the end to learn more about the specifics of Amazon levels or Amazon salary levels.
Why Is Leveling Important?
Every company has different levels; depending on your story, the team’s workload and career path are impacted. It also tells you what is required to advance to the next level and determines whether you lead projects and formulate strategy.
Leveling is a process that considers a candidate’s technical test performance, interview performance, and prior experience in the field.
Ask the recruiter or hiring manager to go over the level you were placed at and the expectations for moving to the next because, although leveling is a science, most organizations don’t have many formalized processes around it, which differs from department to company.
What Are The Levels On Amazon?
According to their work experience, Amazon employees are typically divided into 12 groups, each with a different salary.
Jeff Bezos is the only person who can reach level 12. Still, other stories have more employees with different levels, including CEOs, SVPs, VPs, directors, senior managers, managers, and regular support staff, FC workers.
Do not skip the next paragraph if you require additional information regarding various Amazon salary levels.
A Breakdown Of The Amazon Salary Structure
The pay scale at Amazon is based on a four-year model. This incentive structure, which includes guaranteed cash and stock to motivate employees, has not changed over the years.
Annual Payout For Base Salary
Another distinctive aspect of Amazon’s compensation structure is the RSU payout system. The most typical way to receive stock or equity is in equal installments over four years.
RSUs, which are restricted stock units, have a four-year vesting schedule. When you start working at Amazon, you’ll get payouts (previously known as “bonuses”), but after the second year, you’ll stop getting payouts and start getting an increase in RSUs.
An RSU is a benefit that an employer offers to a worker in the form of company stock. The stock is given to the employee after a specified period rather than immediately (vesting period).
Every position at Amazon is divided into compensation levels, each with different salaries. At Amazon, there are 12 levels.
Beginning at Level 4, where their average incomes range from $50,000 to $70,000, new full-time workers are paid.
Level 11 is the top level for senior VPs earning more than $1 million annually (Jeff Bezos is the only Level 12). They use your years of experience and interview performance to determine what level of role you’re considered for.
On Amazon, each level corresponds to a certain number of years of experience:
|1-3 Years of Experience||Level 4|
|Three to Ten Years of Experience||Level 5|
|8 to 10 years of experience||Level 6|
|Experience of at least ten years.||Level 7|
Amazon rarely hires outer talent at this level, preferring to promote from within instead. No matter what level an employee is at, Amazon has a base salary ceiling of $160,000, even though the tiered ranks indicate differences in total compensation.
That suggests that Amazon gives employees RSUs priority, which has been a good incentive given that Amazon stocks have never decreased (knock on wood).
That also implies that a candidate earning $220,000 as a base salary will probably need to change their perspective to consider the $160,000 base salary ceiling.
The total compensation will be reasonably reflective of the role, even though a candidate might feel their salary is being reduced. Additionally, candidates making less than $160,000 should exercise caution when attempting to advance past this point.
If interested, you can view the salary ranges by level and compare levels across companies.
What Are The Salary Levels At Amazon?
You’ve already read what the Amazon levels mean, but I want to go further and cover the various Amazon salary levels in more detail.
Continue reading to learn more about each of these 12 levels. However, it would help if you kept in mind that the figures below are only averages and may vary depending on the industry you choose to work in.
Amazon Level 1 Salary
You don’t need a lot of experience to work at Amazon level 1, and you should complete straightforward tasks assigned by Amazon staff.
Your starting salary will be around $44,000 per year at this level, and as you gain more experience, you could make up to $135,000 per year.
Amazon Level 2 Salary
The typical salary at this level starts at $88,000 per year, though we are unsure of the experience and aptitude required to work at this level. Like all other levels, you can earn about $211,266 as your experience increases.
Amazon Level 3 Salary
You are almost at the start of getting the highest-paying jobs at Amazon if you are looking for an Amazon job at level 3. Because those who hold status four jobs are among those who earn the highest salaries on Amazon.
I should also mention that level 3 employees at Amazon make an average of $125,897 annually, with potential growth to $24,000.
Amazon Level 4 Salary
You can easily find a job at level 4 and make about $166,000 per year now that you have enough experience and have accrued one to three years of experience.
Amazon Level 5 Salary
These jobs require between three and ten years of experience and those who work at this level fall into one of the high-paying categories. I have to say that the Amazon level 5 salary is somewhere around $200,000 per year if you’re interested in learning more.
Amazon Level 6 Salary
You must have between 8 and 10 years of experience for this level, and you will undoubtedly make more money than at lower levels.
You will not make less than $200,000 as an Amazon employee working at level 6, even though the level 6 salary will vary depending on the type of job, just like all other levels.
Amazon Level 7 Salary
For a position at this level, which is one of the professional Amazon levels, you typically need ten years of experience.
I should also mention that level 7 workers are usually chosen among those who previously worked for the company. Additionally, they won’t generally make less than $300,000 per year.
Amazon Level 8 Salary
Only directors, seniors, and managers, who are among the most seasoned Amazon employees and make around $600,000 annually, are employed at this level.
Additionally, there are a few particular jobs at this level where you can work and make more than a million dollars.
Amazon Level 9 & 10 Salary
Similar to Amazon level 2, we do not have much information about those who work at this level other than the fact that they are highly regarded and experienced individuals who make a minimum of $1 million per year.
Amazon Level 11 Salary
Similar to Amazon level 2, we don’t know much about the people who work at this level other than the fact that they are well-respected. These seasoned professionals earn at least $1 million annually.
Amazon Level 12 Salary
As I have previously stated, the founder of Amazon, Jeff Bezos, is the only person employed at this level. Even though no one is aware of his exact annual income, as I am writing this text, we know his net worth is approximately 142 billion USD.
- It’s crucial to have a plan for your next career move.
- Today, one of the most well-known online retailers is Amazon, where many consumers regularly purchase necessities.
- However, most people only see one side of this large company, and on the other side, there are numerous employers. There are various job levels at which you can be hired,
- You can determine where Amazon sees you on the skill set spectrum by understanding the level you have been offered and what that means in terms of the scope of work.
- Although leveling at Amazon is distinct from other companies, many similarities with the rest of the market can help you understand where your skill level falls within the leveling hierarchy of FANG companies and the tech industry.
- You are now better prepared to take control of your career, communicate your goals for advancement to your manager, and add value for both Amazon and yourself.