More than nine in ten Microsoft employees in India got pay rises of 5% or less in the 2026 appraisal cycle. That is according to a recent survey by the professional networking platform Blind. The small raises come as Microsoft reports strong earnings and runs a voluntary buyout programme affecting tens of thousands of workers worldwide.
What the Survey Found
Blind surveyed 2,178 India-based professionals. Among Microsoft respondents, 91% said they received a rise of 5% or less. A year earlier, the figure was 45%. Only 5% got raises above 10%, down from 27% last year.
Some 86% of Microsoft respondents said they were unhappy with their increments. That made Microsoft one of the lowest-rated employers in the survey, second only to Zoho.
Strong Results Behind the Numbers
The pay figures contrast with Microsoft’s financial performance. Net income rose 32% year on year to $36.6 billion for July-September. Revenue climbed 19% to $92.3 billion. Microsoft Cloud revenue rose 30% to $63.9 billion, and Azure revenue grew 48%.
Microsoft expects revenue of up to $97.1 billion this quarter. It plans to spend more than $50 billion on capital expenditure to fund its AI infrastructure.
A Buyout for 60,000 Staff
According to the report, Microsoft’s Chief People Officer Amy Coleman recently announced a Voluntary Exit Offer (VEO). It covers about 60,000 employees worldwide, including those in India, the US, Canada and the UK. Eligible staff at level 70 and below have until early December to opt in.
The buyout has moved employee attention from pay to keeping their jobs. Blind said searches by Indian users on buyouts and voluntary exit programmes rose 60% over the past year. Searches on layoffs and severance rose from 16% to 21%. Interest in hikes, raises and pay freezes fell by 7%.
Cost-Cutting and AI Shape Tech Pay
The trend reflects wider unease across India’s technology sector. Employees increasingly feel that company priorities outweigh individual performance.
In the survey, 41% of respondents tied their appraisal outcomes to company finances and cost-cutting. Another 18% pointed to shifting business priorities around AI and automation. Only 22% believed their individual performance rating was the main factor.
Across the sector, 35% of Indian tech workers received no hike or a pay cut this year. Another 59% got raises of 5% or less. Nearly two-thirds of the wider tech workforce said they were unhappy with their annual increments.
