91% of Microsoft India employees get 5% or less salary hikes: Will more workers accept its voluntary buyout?

The findings come at a time when the technology giant is offering eligible employees a voluntary exit option, raising questions about employee satisfaction, job security and the company’s changing workforce priorities.

The survey, which covered 2,178 India-based professionals, found that 91% of Microsoft respondents received salary increases of 5% or less during the latest appraisal cycle. This is a significant jump from 45% in 2025. Meanwhile, only 5% received hikes of more than 10%, compared with 27% last year.

Employee dissatisfaction has also increased. Around 86% of Microsoft respondents said they were unhappy with their salary increments, placing the company among the lowest-rated employers in the survey, with only Zoho recording higher dissatisfaction.

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Could low salary hikes push employees towards Microsoft’s buyout offer?

The disappointing appraisal figures coincide with Microsoft’s recently announced Voluntary Exit Offer (VEO), which gives eligible employees an opportunity to leave the company with financial support and career transition assistance.

Announced on October 26 by Microsoft’s Chief People Officer Amy Coleman, the programme is available to eligible employees at level 70 and below in participating teams across India, the US, the UK and Canada. Around 60,000 employees globally are eligible.

In India, eligible employees have until December 1 to decide whether to accept the offer. The reported severance package includes one month’s base salary for every completed year of service, along with health insurance and career transition support.

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While Microsoft has not linked the programme to its appraisal decisions, lower salary increments could influence how some employees evaluate their future at the company. Those already considering opportunities elsewhere may find the financial support offered through the exit programme worth considering.

Microsoft’s AI investments add to the bigger picture

The developments also come as Microsoft continues to invest heavily in artificial intelligence infrastructure. The company reported a 19% year-on-year increase in revenue to $92.3 billion and a 32% rise in net income to $36.6 billion for the July-September quarter of 2026.

Meanwhile, Blind’s survey found that 41% of Indian technology professionals attributed their appraisal outcomes primarily to company financial performance or cost-cutting, while 18% pointed to changing priorities related to AI and automation.

However, there is no evidence that Microsoft introduced its voluntary exit programme because of low salary hikes. The company has also not disclosed how many eligible employees in India are expected to accept the offer.

For employees, the decision could come down to whether they see better long-term opportunities within Microsoft or prefer to use the exit package to explore opportunities elsewhere.