Microsoft employees in India have reported modest salary increases this appraisal cycle, with 91% receiving hikes of 5% or less, according to a survey by professional networking platform Blind. The findings come as the technology giant reports strong financial growth and introduces a voluntary exit programme for eligible employees globally.
The survey, which covered 2,178 India-based professionals, found a sharp increase in the proportion of Microsoft respondents receiving lower increments compared with the previous year. Employee dissatisfaction has also risen, pointing to growing concerns around compensation and career prospects within the technology sector.
Only 5% of Microsoft respondents received salary increases above 10% in 2026, compared with 27% in the previous appraisal cycle. In 2025, 45% had received hikes of 5% or less, indicating a significant shift in the latest results.
Microsoft's appraisal numbers show a sharp shift
The Blind survey points to a widening gap between employee expectations and the salary increases reported by Microsoft respondents.
The key findings for 2026 include:
91% received salary hikes of 5% or less, compared with 45% in 2025.
5% received increments exceeding 10%, down from 27% a year earlier.
86% expressed dissatisfaction with their salary hikes.
The dissatisfaction figure placed Microsoft among the lowest-rated employers in the survey, with only Zoho recording a higher level of employee dissatisfaction.
The findings suggest that compensation concerns are becoming more pronounced among employees, even as technology companies continue investing in new capabilities and expanding their businesses.
Voluntary exit offer adds to employee uncertainty
The appraisal findings come amid discussions around Microsoft's Voluntary Exit Offer (VEO), announced by Chief People Officer Amy Coleman.
The programme covers around 60,000 employees globally, including workers in India, the US, Canada and the UK. Employees at level 70 and below who meet the eligibility criteria have until early December to decide whether to participate.
The announcement has brought job security into sharper focus during an already subdued appraisal season.
Blind reported that searches by Indian users related to buyouts and voluntary exit programmes increased 60% over the past year. Searches concerning layoffs and severance also rose, with their share increasing from 16% to 21%.
Meanwhile, interest in searches related to hikes, raises and pay freezes declined by 7%, reflecting a shift in the subjects employees are discussing on the platform.
Record financial performance contrasts with employee sentiment
The reported salary increases come against the backdrop of strong financial results from Microsoft.
For the July-September quarter, the company reported a 32% year-on-year rise in net income to $36.6 billion, while revenue increased 19% to $92.3 billion.
Its cloud business also recorded growth during the quarter:
Microsoft Cloud revenue rose 30% to $63.9 billion.
Azure revenue increased 48%.
Microsoft expects revenue of up to $97.1 billion in the current quarter and plans capital expenditure exceeding $50 billion as it continues investing in AI infrastructure.
The contrast between financial performance and employee compensation has brought renewed attention to how companies distribute gains and manage workforce costs during periods of technological transformation.
AI and cost-cutting influence compensation decisions
The Blind survey also examined what employees believed influenced their appraisal outcomes across India's technology workforce.
According to the findings, 41% of respondents attributed their appraisal outcomes primarily to company financial performance or cost-cutting measures. Another 18% pointed to changing business priorities linked to AI and automation, while 22% identified individual performance ratings as the biggest factor.
The broader results indicated that salary growth remained limited for a substantial section of India's technology workforce:
35% reported receiving no salary hike or a pay cut in 2026.
59% received salary increases of 5% or less.
Nearly two-thirds expressed dissatisfaction with their increments.
These figures cover Indian technology professionals surveyed by Blind and should be distinguished from the Microsoft-specific findings.
For Microsoft employees in India, the combination of modest increments, a voluntary exit programme and expanding AI investments has placed compensation and job security under scrutiny. The survey offers a snapshot of employee sentiment, although it does not establish the company's official rationale for individual salary decisions.
