A comprehensive survey by the Association of Chartered Certified Accountants reveals a significant dissatisfaction with current compensation levels across India. According to the report, only 29% of Indian employees are satisfied with their current pay packets, substantially below the global average of 36%. This gap highlights the growing pressure on household budgets as inflation and rising living costs continue to impact household finances, with essential expenses such as housing, transportation, education and healthcare continuing to rise. The survey findings underline how inflation and higher day-to-day expenses are reshaping employee expectations in India's workforce.
The survey data shows a dramatic increase in employee expectations for salary revisions. 81% of Indian respondents are planning to ask their employers for a salary increase over the next year, representing a significant jump from 67% in 2025. This figure also exceeds the global average of 62% for 2026, indicating that India faces particularly acute salary satisfaction challenges. As reported by the Association of Chartered Certified Accountants, this trend reflects rising pressure on employers as inflation and higher living costs continue to affect household budgets. The report states that both globally and in India, the proportion of those seeking to ask for a pay rise has risen since 2025, with employers increasingly facing pressure to balance rising salary expectations with profitability and retention strategies.
The survey identifies cost of living as a primary work-related concern for Indian employees. According to the report, cost of living ranks as the second biggest concern after fears of jobs being replaced by technology in India. Globally, cost of living remains one of the top work-related concerns in 2026, highlighting the universal nature of these financial pressures on employees worldwide. The survey suggests that economic uncertainty and rapid technological change are simultaneously influencing employee sentiment, with workers increasingly focused on securing better pay packages to maintain their standard of living amid rising essential expenses.
Demographic analysis reveals that younger employees are driving the demand for salary increases. Millennials are the most likely to seek pay increases, with 90% planning to request a raise in the next 12 months, as reported by the Association of Chartered Certified Accountants. This age-wise trend shows Gen Z at 77% and Gen X at 75%, with most employees not being shy about their expectations. The findings indicate that mid-career professionals may be feeling greater financial pressure due to responsibilities such as family expenses, home loans and long-term financial planning. The report notes that compensation continues to remain the most important factor for employees, especially among younger professionals who are focused on higher take-home pay.
The survey reveals that employees are not settling for modest salary increases, with most expecting substantial raises. Nearly seven out of 10 employees expect raises over 10%, with Gen X workers especially hoping for double-digit increases as inflation and household expenses continue to climb. This expectation for significant salary increases reflects the severity of the cost-of-living crisis and employees' determination to maintain their purchasing power in the face of rising living expenses. Around 68% of Indian respondents expect a salary increase of more than 10%, compared to 37% globally, with Gen X workers showing the highest expectations at 76%. Among employees expecting hikes above 10%, Gen Z workers reported the highest expectations at 60%, followed by Millennials at 55%. These figures reflect growing confidence among employees about negotiating better compensation as companies continue to compete for skilled talent.
