Microsoft confirms salary freeze for full-time staff

The salary hike freeze will not impact promotions, bonuses and stock awards

Full-time Microsoft employees will not be receiving any pay rises this year the tech giant has confirmed to CRN.

When asked about the salary freeze for 2023, a spokesperson for Microsoft said: "As a company we recognise that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business and our future.

"As part of that effort, we are funding our compensation to align with the overall market. While we will not be providing salary increases for our full-time salaried employees this year, we will continue to invest in our employees through promotions, bonus and stock."

The spokesperson also revealed that the company plans to maintain bonus and stock award budgets "similar to historical averages". Salary increases associated with promotions will still continue to be provided as per usual.

They added: "These principles will be applied to the SLT - both in the absence of salary increases and the level of performance-based bonuses, which will be substantially lower this year."

Microsoft CEO Satya Nadella announced the salary freeze to staff in an email, according to CNBC.

The announcement, quoted by the US broadcaster, read: "We will maintain our bonus and stock award budget again this year, however, we will not overfund to the extent we did last year, bringing it closer to our historical averages."

Nadella said the move was a difficult one but "necessary to prepare the company for long-term success."

The announcement comes just months after it was reported Microsoft was planning to lay off 11,000 workers worldwide, representing about five per cent of its employee base.

At the time, a Microsoft spokesperson told CRN in an email that the vendor does "not comment on rumour."