Microsoft said Friday it was raising pay for employees to retain "top talent" in the fiercely competitive market for skilled technology workers.
"Through our history, we have been THE place people came when they wanted to make a difference in the world through software, hardware and services," Microsoft chief executive Steve Ballmer said in a statement.
"This is as true today as it has been at any time in our history, and the changes we're rolling out today will help ensure Microsoft continues to be the place that top talent comes to change the world."
A Microsoft spokesman would not disclose the amount of the wage hikes or how they were being doled out.
The raises come as Internet titans and fledgling startups compete for software and hardware engineers.
Microblogging service Twitter said it was taking new hires on weekly.
Google has awarded nearly $9 million in bonuses and another $50 million in equity to four top executives, according to a recent filing with the US Securities and Exchange Commission.
The Internet giant announced in January that it will hire a record number of people this year, taking on more than 6,000 workers "across the board and around the globe."
Google added more than 4,500 "Googlers" to its employee ranks in 2010 and plans to easily eclipse that figure this year, senior vice president of engineering and research Alan Eustace said in a blog post.
Explore further: Google hits back at rivals with futuristic HQ plan