More than nine out of ten Microsoft employees in India experienced salary increments of 5% or less during 2026, according to a survey conducted by workplace networking platform Blind. This figure marks a substantial increase from 45% in 2025, highlighting a shift in compensation trends at the tech giant.
The findings, which surveyed 2,178 India-based professionals, reveal a growing discontent among the workforce. Approximately 86% of Microsoft respondents expressed dissatisfaction with their recent salary appraisals, placing the company among the lowest-rated employers in the survey regarding pay raises.
Voluntary Exit Offer Coincides with Low Hikes
This period of reduced salary growth aligns with Microsoft's recently announced Voluntary Exit Offer (VEO). The program, detailed by Chief People Officer Amy Coleman on October 26, provides eligible employees at level 70 and below in specific teams across India, the US, the UK, and Canada with an opportunity to leave the company. Globally, around 60,000 employees are eligible for the VEO, with Indian staff having until December 1 to decide.
The reported severance package for those accepting the VEO includes one month's base salary for each completed year of service, along with health insurance and career transition support. While Microsoft has not explicitly linked the VEO to its appraisal decisions, the low salary increments could influence some employees' decisions to explore opportunities outside the company, leveraging the financial support provided.
AI Investments and Workforce Priorities
These internal developments occur as Microsoft continues its substantial investments in artificial intelligence infrastructure. The company reported robust financial performance for the July-September quarter of 2026, with revenue climbing 19% year-on-year to $92.3 billion and net income rising 32% to $36.6 billion.
Interestingly, the Blind survey also found that 41% of Indian technology professionals attributed their appraisal outcomes to company financial performance or cost-cutting measures. Another 18% pointed to evolving priorities related to AI and automation as a factor impacting their salary reviews. However, the company has not disclosed how many eligible employees in India are expected to accept the voluntary exit offer, nor has it directly linked the VEO to the appraisal outcomes.
For employees, the choice between remaining with Microsoft or accepting the exit package likely hinges on their assessment of long-term career prospects within the company versus utilizing the severance to pursue new ventures.