Microsoft India salary hikes: 91% get 5% or less as tech giant rolls out voluntary buyout

More than 9 in 10 Microsoft employees in India received salary increases of 5% or less during the 2026 appraisal cycle, according to a recent survey by the professional networking platform Blind. The muted increments coincide with the tech giant reporting record profits and rolling out a voluntary buyout programme impacting tens of thousands of workers globally. According to the Blind survey of 2,178 India-based professionals, 91% of Microsoft respondents reported receiving a 5% or less increase this year, a sharp increase from 45% a year earlier.

Only 5% of employees received raises exceeding 10%, down significantly from 27% last year.86% of Microsoft respondents, the survey said, expressed dissatisfaction with their increments, making the tech giant one of the lowest-rated employers, second only to Zoho. Record profits contrast with employee frustrationThe subdued pay hikes stand in sharp contrast to Microsoft's stellar financial performance. The company recently reported a 32% year-on-year surge in net income to $36.6 billion for the July-September quarter, driven by a 19% climb in revenue to $92.3 billion.

Microsoft Cloud revenue jumped 30% to $63.9 billion, while Azure revenue grew by 48%. Looking ahead, Microsoft expects current-quarter revenue to reach up to $97.1 billion and plans to allocate over $50 billion in capital expenditure to heavily fund its AI infrastructure. Voluntary exit offers overshadow appraisalsAccording to the report, Microsoft's Chief People Officer Amy Coleman recently announced a Voluntary Exit Offer (VEO) covering approximately 60,000 employees globally, including staff in India, the US, Canada, and the UK.Eligible employees at level 70 and below have until early December to opt into the programme.

This buyout push has shifted employee focus from compensation to job preservation. Blind reported that searches by Indian users related to buyouts and voluntary exit programmes surged by 60% over the past year. Searches for layoffs and severance also rose from 16% to 21%, while interest in hikes, raises, and pay freezes declined by 7%.

Cost-cutting and AI dictate tech sector hikesThe trend reflects broader anxieties across the Indian technology sector, where employees increasingly feel that corporate priorities are overshadowing individual performance. The survey found that 41% of respondents attributed their appraisal outcomes to the company's financial performance and cost-cutting efforts, while 18% pointed to shifting business priorities related to AI and automation. Only 22% believed individual performance ratings were the primary factor behind their hike.

Overall, 35% of Indian tech workers reported receiving no hike or a pay cut this year, and 59% received raises of 5% or less. Nearly two-thirds of the broader tech workforce expressed dissatisfaction with their annual increments.