Izood MAG

BUSINESS — explainer

Amazon Job Levels and Salaries Explained, L4 to L11

Everything about Amazon Intership and its salary

Amazon organises every job on a single numbered ladder. It runs from L1 to L12, and the number determines scope, pay band and equity more than the job title does — which is why people ask about levels rather than titles.

Two clarifications first, because they are widely misreported. Amazon does not have a level reserved for a founder, and Jeff Bezos has not been CEO since 2021 — Andy Jassy holds the role, and Bezos is Executive Chair. L9 is also not conventionally used; the ladder in practice runs L1–L8, then L10 and above.

The ladder

LevelTypical rolesScope
L1–L3Fulfilment centre associates, customer service, entry operational and support rolesDefined tasks, hourly
L4SDE I, entry-level corporate and analyst rolesWell-defined problems with guidance
L5SDE II, senior analyst, programme managerOwns features end to end
L6Senior SDE, senior manager, senior PMOwns a system or a team
L7Principal engineer, director-level managementOrganisation-wide impact
L8Senior principal, directorMultiple organisations
L10Vice PresidentA whole business area
L11Senior Vice President (S-team)A major division
L12CEOThe company

L4 is the first corporate level and where most graduate hires enter. L6 is where Amazon expects independent ownership, and it is the level most external senior hires target. L7 and above are rare and usually filled internally.

What the levels pay

The figures below are median total compensation for software engineers in the United States, which is the role with the most reliable public data. Base salary, sign-on bonus and stock are all included, because at Amazon the base alone tells you very little.

LevelRoleMedian total compTypical range
L4SDE I~$188,000$160K – $220K
L5SDE II~$271,000$230K – $370K
L6SDE III / Senior~$388,000$350K – $530K
L7Principal SDE~$685,000$500K – $900K+

Non-engineering roles at the same level pay less — often substantially. An L5 in operations, marketing or finance should not read the L5 engineering figure as their band. Location matters too: Seattle, the Bay Area and New York sit well above the rest of the US, and non-US offices are on entirely separate scales.

Why your first two years pay less than the offer suggests

This is the single most important thing to understand about an Amazon offer, and the most common source of unpleasant surprises.

Amazon vests restricted stock on a 5/15/40/40 schedule: 5% of the grant in year one, 15% in year two, then 40% in each of years three and four. Most companies vest 25% a year. Amazon compensates for the early gap with a sign-on bonus paid across the first two years — and that bonus does not repeat.

The consequence is a real dip in year three, when the sign-on has ended and the year-three vest has only just begun. Total compensation quoted as an average across four years can therefore be accurate and still describe a year-three income noticeably below it.

The upside is the other end: years three and four at a given level can exceed the equivalent at Google or Meta, provided the share price has held and you are still there.

How levelling is decided

Level is set during hiring, from interview performance and prior scope rather than years served. Two things follow:

  • It is negotiable, and it matters more than salary. The gap between L4 and L5 is around $80,000 a year at the median, far more than any base-salary negotiation will produce. If you believe you interviewed at a higher level, that is the thing to push on.
  • Down-levelling is common. Being offered a level below the one you applied for usually reflects the interview, not the résumé. Accepting it is a legitimate choice, but internal promotion from L4 to L5 typically takes two years or more.

There is also a base salary cap in the US — long held around $350,000 — which is why senior offers are weighted so heavily towards stock. Negotiating base above it is not available; negotiating the equity grant is.

Reading an offer properly

  1. Ask for the level in writing. It governs everything else.
  2. Get the four-year breakdown year by year, not the average.
  3. Note the share price the grant was valued at — the grant is a number of shares, and the dollar figure moves.
  4. Confirm how the sign-on is split across years one and two.
  5. Model year three specifically. That is where offers disappoint.

FAQs

Are these figures accurate for my country?

No. They are US figures. Other regions run separate bands, often well below these.

How long does promotion take?

Roughly two years from L4 to L5, and longer at each step after. L6 to L7 can take many years and is not guaranteed at all.

Does Amazon still do annual raises?

Base increases are modest and capped. Compensation growth comes primarily from new stock grants and from levelling up.

What is the S-team?

The senior leadership group around the CEO, drawn from L11 and above. It is a small number of people.