Why Average Salary of Spotify Employee is more than $150k?

Why Average Salary of Spotify Employee is more than $150k?

What would you say if I asked you what is the best part of a job? yes, we all know it, it's the salary. Except in some cases when you are madly passionate about working and creating impact.

So for the general public, it's the return on time investment. It is a good metric to judge a job based on how much it provides a return. It can also be seen as a value meter that tells how much of a value is being created. Higher the return, the greater the level of value addition.

We all know the most popular players in providing handsome salaries like Apple, Google, Microsoft, Adobe, Goldman Sachs. This article is not about them, as you must’ve guessed from the title. It is about Spotify, but let us build up a basic understanding of salaries and company profiles and then jump to Spotify.

Every human, every civilized human wants money. Okay, enough philosophy. Everyone who wants to join the workforce wants to join a corporation that will pay them well. They aim for the biggest names in the market and even if they fail to get the moon, they vouch for stars.

A Brief about Spotify
How does Spotify pay its Employees better than its Competitors?
How much does Spotify pay its Employees?

A Brief about Spotify

Spotify is a Swedish music and media streaming service. It is also the world’s largest music streaming service provider. It offers services on almost every device possible, be it Mac, Android, Windows, and Linux.

As of now, Spotify has a huge user base, it has around 172 million paying users and around 381 million of the total user base. That too across the globe and in around 178 countries.

Spotify  Worldwide Monthly Active Users
Spotify Worldwide Monthly Active Users

Music is food for the soul and these numbers prove the statement right. People love to listen and their favourite one-stop place to go is Spotify. Spotify is good at giving recommendations, understanding its users, and increasing their retention.

The streaming service also entails a premium section of listening to music. It includes music downloads and group listening, Spotify is promoting its premium section by small payments recurring at small intervals of time. Like a 7 Rupee for a day, or 25 for a week. These are specially designed packs for the Indian audience to make them more comfortable with streaming servers.

We all were earlier used to downloading songs (Illegally) and then listening to them, but it was wrong and steps like that of Spotify are helping make the shift to streaming music and paying for songs they love. This is the legitimate way to honor artists that create songs as their art form.

Spotify is not only good for listeners but also a great corporation for the people working there. The employees are relatively happy there because of the competitive salaries and perks that the company provides. Let us look at some of them.

However, there are many competitors in this space, like the common name YouTube Music, Gaana, Saavn, and many more but time and again with its efficient working and great management, Spotify has managed to top the charts of not just songs but streaming too.

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How does Spotify pay its employees better than its competitors?

Apart from having a huge user base. Spotify has close deals with differentiating podcasts like Joe Rogan, Obama Family, and many more. All this adds to its revenue maps and allows the company to provide competitive salaries to its employees. The average salary of a Spotify employee is more than 110,500$. That is a handsome amount.

Spotify has increased employees by 28 percent in 2019. This shows the demand for the product market. Business insiders performed research and found out that the company can pay more than the past average, in stock or cash.

As we discussed earlier the popularity of Spotify and the domains it provides services in. It has a freemium edge and a premium edge. Freemium includes music streaming with advertisements, this adds up to the revenue that they generate from the advertisement domain.

The premium includes some price that disables ads and provides pro benefits like downloading music and commercial-free listening. This adds up the main revenue model of royalties. Spotify pays artists a fixed payment for their songs being listed on the platform.

How much does Spotify pay its Employees?

Spotify Salary Average by Department
Spotify Salary Average by Department

Spotify pay Marketing Specialists $95,000 to $190,000. Researchers and specialists around 140,000 to 240,000 dollars of base salary, Engineers and statisticians about 110,000 to 250,000 dollars and Human resources, finance or legal 133,390 to 185,000 dollars.

The highest-paid salary is that of director of sales that is around $200,000 and the lowest is about $46,500. Making the company average reach more than $110,000.

The unique thing about Spotify is that it is allowing WFH from anywhere with getting the same salaries as before.

In February 2021, it announced a Work from anywhere scheme. Allowing employees to work from anywhere, and the company will continue paying the New York and San Francisco salary rates. Executives believe that it is the future.

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As Spotify changes how people listen to music, the legal way. Its effective business revenue model is working fine. It can provide some most competitive salaries. This is a good thing for keeping up the employee’s motivation and providing them with a platform to be their best self.

Other domains should learn from this and try to create a differentiating factor that places them in a better position than competitors. Thus, adding better working efficiency in the corp.


How much do Spotify employees get paid?

The base salaries of Spotify employee ranges from $60,000 to $260,00 for a variety of roles.

Does Spotify pay its employees better than its competitors?

Yes, Spotify does pay its employees higher than its competitors.

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