Over 90% of Microsoft employees in India received wage hikes of 5% or less for 2026, leading to widespread dissatisfaction despite the company's strong financial growth. This discontent is further fueled by a new Voluntary Exit Offer and concerns that AI investments and cost-cutting are prioritizing infrastructure over employee compensation.
Over 90% of Microsoft workers in India who participated in a recent workplace poll earned wage hikes of 5% or less for 2026, underscoring rising discontent among computer professionals amid fears over job security and the company’s voluntary leave program.
According to a study by workplace networking platform Blind, 91% of Microsoft respondents in India said they received raises of 5% or less this year. That’s a huge jump from 45% in 2025, indicating a considerable slowing in income growth.
The poll includes 2,178 professionals working in India. Just 5% of Microsoft’s respondents indicated they earned raises of more than 10%, down from 27% a year earlier. The discontent of the employees has also risen. Microsoft respondents were over 86% unsatisfied with their compensation raises, making it one of the worst-rated companies in the poll, after Zoho.
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Microsoft's Voluntary Exit Offer Raises Job Security Concerns
The findings come as Microsoft offers a Voluntary Exit Offer (VEO) to around 60,000 employees globally, including eligible workers in India, the US, Canada and the UK. The initiative is open to employees at level 70 and lower in participating teams, said Amy Coleman, chief people officer. Eligible staff have until early December to decide whether to take the offer.
The program has helped spark conversations about job security and the future of work in the technology sector. Blind said searches by users in India linked to buyouts and voluntary leave programs were up 60% over the last year. The poll also revealed interest in layoff and severance-related talks increased, from 16% to 21%. Meanwhile, searches on wage boosts, raises and pay freezes fell by 7%
Microsoft Reports Strong Financial Performance
The projected slowdown in compensation increases comes while Microsoft’s financial performance remain solid and it continues to ramp up investments in artificial intelligence. Net profits for the July-September quarter rose 32 percent to $36.6 billion, the business said. Revenue increased 19% to $92.3 billion.
Microsoft Cloud revenue increased 30% to $63.9 billion, while Azure revenue recorded 48% growth. The company also projected revenue of up to $97.1 billion for the following quarter. According to the article, Microsoft is still investing a lot of money on AI infrastructure, and capital expenditures are likely to be more than $50 billion this quarter.
AI And Cost-Cutting Cited As Reasons
The survey also examined what Indian technology employees believe influences their annual salary increments. Other than firm financial success or cost-cutting efforts, 41% of respondents identified the major drivers of evaluation outcomes. Another 18 percent said company initiatives around artificial intelligence and automation were to blame.
Only 22% indicated their individual performance assessments were the most important element in determining their compensation increases. Among the larger sample of Indian IT professionals surveyed, 35% said they did not get an advance or faced a wage decrease in 2026. Some 59 per cent got increments of 5 per cent or less and over two-thirds were dissatisfied with their increases.
The findings point to growing uncertainty among technology professionals as companies balance compensation decisions, cost management and investments in AI. For Microsoft employees in India, the possibility of modest salary hikes and a voluntary exit program have sharpened questions around career stability and future prospects.
