According to an Indeed survey of 1,207 employees and 1,013 employers across India, nearly seven in 10 employees say their income does not comfortably support their lifestyle. The survey found that 68% of employees said their current income does not comfortably support their lifestyle, highlighting a widening gap between salary growth and day-to-day expenses. While 32% said their income was just enough to cover costs, 24% described their finances as difficult to manage and 12% reported significant financial stress. Only 13% said their income comfortably met their cost of living.
Financial strain is increasingly influencing career decisions, with more than one-third of employees surveyed saying rising living costs had prompted them to actively seek or remain open to better-paying opportunities. Side incomes are becoming more common, with 14% regularly earning through freelancing or additional work and another 19% doing so occasionally. A further 24% said they were considering starting an additional source of income. Taken together, nearly six in 10 employees are either supplementing their primary income or considering doing so, signalling a shift towards income diversification rather than reliance on salary increases alone.
The survey suggests affordability concerns are reshaping where people want to live and work. Housing costs emerged as the biggest quality-of-life challenge, cited by 39% of employees. Traffic and commute times, as well as rising day-to-day expenses, were each cited by 27% of respondents. Consequently, more than half of metro-based employees — 54% said they would consider relocating to a Tier-2 or Tier-3 city if similar career opportunities were available. The willingness to relocate was highest among employees in Hyderabad, followed by Mumbai, Delhi-NCR and Bengaluru.
Despite concerns over income, employees are not focused solely on higher salaries. When asked what would most influence future career decisions, 41% ranked job stability and security as their top priority, ahead of higher salary and compensation, which was cited by 30%. Lower living costs and better work-life balance were also important considerations. The survey found a disconnect between employee expectations and employer responses, with 73% of employers saying rising living costs were affecting workers in their organisations and 56% reporting growing salary expectations, while 77% said they had not introduced new workplace measures or support programmes to help employees manage higher expenses.
Employers are beginning to respond to the trend, with around 43% saying Tier-2 and Tier-3 cities are becoming increasingly important to their hiring strategies. This indicates a gradual broadening of India's talent landscape beyond major metropolitan centres. The survey was conducted by Indeed and highlights how rising living costs are fundamentally changing how Indians work, earn and plan their careers, with workers increasingly turning to side gigs, seeking better-paying jobs and considering moves away from expensive metro cities.
