Microsoft’s 2026 appraisal cycle has left most of its India-based employees disappointed, with 91% reporting salary hikes of 5% or less, a sharp jump from 45% a year earlier, according to a survey by workplace networking platform Blind.
The Blind survey ran from 15 to 26 October 2026 and covered 2,178 India-based professionals across the technology sector, with Microsoft employees among the respondents.
Only 5% of Microsoft respondents in India reported receiving salary hikes above 10% in 2026, compared with 27% in the previous year’s survey. About 86% of Microsoft employees surveyed said they were dissatisfied with their appraisals, positioning the tech firm among the lowest-rated employers in the platform’s findings, second only to Zoho.
Across the Indian technology sector, the Blind findings were striking: 35% of workers received no hike or a pay cut, while 59% received raises of 5% or less.
On the reasons behind the appraisal outcomes, Blind found that 41% of participants linked their results to company financial performance and cost-cutting initiatives, while 18% attributed outcomes to “changing priorities linked to artificial intelligence and automation”.
Dissatisfaction has been compounded by a new Voluntary Exit Offer (VEO) for level 70 and below employees, announced by Chief People Officer Amy Coleman, which could affect around 60,000 staff globally, including those in India.
The muted hike cycle at Microsoft comes even as the India IT services sector grapples with projected average pay hikes of 8.9% for 2026, the lowest projection in several cycles. Globally, Microsoft has reported strong financial growth in recent quarters, which has deepened frustration among Indian employees weighing their options amid the voluntary buyout programme.
