What you need to know

  • Microsoft could potentially end its salary freeze for some employees.
  • The Redmond giant stopped raising salaries for full-time staff last year due to tough economic times.
  • The salary freeze sparked mixed feelings among most employees, who started questioning the company’s leadership.
  • The decision negatively impacted some of the employees’ performance and morale.

Last year, Microsoft CEO Satya Nadella informed the company’s full-time staffers they wouldn’t get a salary raise. The CEO blamed tough economic times, further indicating that it was a difficult decision under consideration for several months.

But as it now seems, the company is over the hump. According to a spot by Business Insider, Microsoft executive vice president of cloud and AI Scott Guthrie indicated that merit raises are set to increase this year while at an employee meeting. For context, Microsoft refers to performance-based raises as merit increases.