Microsoft employees in India have reported a sharp slowdown in salary increments during the 2026 appraisal cycle, with an overwhelming majority receiving raises of 5% or less. According to a survey conducted by workplace networking platform Blind, 91% of Microsoft respondents in India said their salary increases were capped at 5% during the latest appraisal cycle, highlighting growing dissatisfaction among employees.
The findings mark a significant shift from the previous year, when only 45% of respondents reported receiving increments of 5% or less. The survey covered 2,178 professionals in India between October 15 and October 26.
Only 5% of Microsoft respondents reported receiving salary hikes exceeding 10% in 2026, compared with 27% in the previous year’s survey. Employee dissatisfaction was also widespread, with 86% of respondents expressing unhappiness over their appraisal outcomes.
Credits: Mint
Microsoft’s voluntary exit offer raises job security concerns
The disappointing appraisal outcomes come amid Microsoft’s announcement of a Voluntary Exit Offer (VEO) for eligible employees in India, the United States, the United Kingdom and Canada.
Amy Coleman, Microsoft’s chief people officer, announced the programme on October 26. The offer is available to eligible employees at Level 70 and below across participating teams in the four countries. The company said the initiative would provide employees considering opportunities outside Microsoft with financial support to make the transition.
The buyout programme reportedly covers approximately 60,000 employees globally, adding another dimension to concerns surrounding workforce stability as the technology giant increases its investments in artificial intelligence.
Blind’s survey also highlighted growing interest in voluntary exits and layoffs among technology professionals. Searches related to buyouts and voluntary exit programmes on the platform in India increased by 60% over the past year.
Meanwhile, searches concerning layoffs and severance accounted for 21% of relevant searches, up from 16% previously. In contrast, interest in salary hikes, raises and pay freezes declined by 7%, suggesting that employees are increasingly concerned about job security rather than compensation growth.
Microsoft reports strong financial growth despite limited salary hikes
The relatively modest salary increments come despite Microsoft’s strong financial performance in the September quarter.
The company reported revenue of $92.3 billion for the quarter ended September 30, representing a 19% year-on-year increase. Net income climbed 32% to $36.6 billion, reflecting continued growth across its business segments.
Microsoft Cloud revenue increased 30% to $63.9 billion, while its Azure cloud computing business recorded 48% growth during the quarter.
The results highlight the contrast between Microsoft’s expanding financial performance and the compensation concerns emerging among its employees. The company has continued to commit substantial resources towards AI infrastructure, cloud computing capabilities and the development of its artificial intelligence ecosystem.
AI investments and cost-cutting influence employee appraisals
The Blind survey also explored the factors employees believed had influenced their salary revisions. Around 41% of respondents identified their company’s financial performance or cost-cutting measures as the primary reason behind their appraisal outcomes.
Another 18% pointed towards changing business priorities resulting from artificial intelligence and automation. Interestingly, only 22% believed their individual performance ratings were the biggest factor determining their salary increments.
Credits: Asianet Newsable
The broader survey findings suggest that Microsoft’s appraisal challenges are part of a wider trend across India’s technology workforce. Around 35% of all respondents reported receiving no increment or experiencing a salary cut, while another 59% said their raises were limited to 5% or less.
Overall, 63% of respondents expressed dissatisfaction with their salary revisions.
With AI investments reshaping technology companies’ spending priorities and voluntary exit programmes gaining traction, employees are increasingly questioning how corporate growth translates into individual compensation. Microsoft’s latest appraisal cycle illustrates the growing disconnect between strong financial results and employee expectations.
The trend also raises questions about how technology companies are balancing rising infrastructure investments with employee compensation. As AI adoption accelerates, workforce restructuring and tighter salary budgets could increasingly shape appraisal decisions across India’s technology industry.
