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A survey by workplace networking platform Blind found that 91% of Microsoft respondents in India received salary increments of 5% or less during the 2026 appraisal cycle ,a stark reversal from the previous year, when 45% reported the same. The survey ran from 15 to 26 October 2026 and covered 2,178 India-based professionals across the technology sector.
Only 5% of Microsoft respondents in India reported hikes above 10%, compared with 27% a year earlier, according to The People's Board, which reported on the Blind findings. Around 86% of Microsoft employees surveyed said they were dissatisfied with their appraisals, placing the company among the lowest-rated employers in Blind's findings, second only to Zoho.
When asked what drove their appraisal outcomes, 41% of respondents attributed results to company financial performance or cost-cutting, while 18% pointed to changing priorities linked to artificial intelligence and automation, Blind found. Only 22% said individual performance ratings were the primary factor.
The compressed increments coincide with Microsoft's announcement of a Voluntary Exit Offer (VEO) for eligible employees at level 70 and below in India, the United States, the United Kingdom and Canada. Around 60,000 employees globally qualify for the programme. Microsoft told employees in India they have until 1 December to decide whether to accept the offer, which includes one month of base salary for each completed year of service, health insurance and career transition support, according to Business Standard.
In a blog post, Microsoft's executive vice-president and chief people officer Amy Coleman said the VEO was aimed at giving employees "who may be considering a future outside the company a new choice to make that transition now with support." Microsoft has approximately 23,000 employees in India, though it has not confirmed how many are eligible for the scheme.
The muted pay cycle arrives as the broader India IT sector is itself under pressure, with projected average hikes for 2026 running at 8.9% — already the lowest forecast in several cycles, The People's Board noted.
Source : TeamBlind
