Six in 10 Indian workers fear their income will fail to keep pace with future inflation, with concern highest among 25- to 34-year-olds and retirement preparedness particularly weak.
For many Indian workers, pay cheques may be rising, but so is the cost of staying afloat. A new report from Grant Thornton Bharat suggests that salary growth is failing to keep pace with the pressure of rent, healthcare, education and other essentials, leaving a large share of employees worried that their earnings will be eroded by inflation before long. The firm’s India’s Financial Resilience Report 2026 found that 62% of respondents believe their income growth will not match future inflation, with concern climbing to 70% among workers aged 25 to 34.
That unease is not confined to one segment of the labour market. Grant Thornton Bharat said the anxiety is spread across India’s cities, with 71% of respondents in Tier 2 locations and 70% in Tier 3 cities saying their income may not be enough to offset inflation, compared with 61% in Tier 1 cities. Ramkumar Subramanian, a partner at the consultancy, told NDTV that rising urban costs were squeezing the middle class, as nominal raises were being swallowed up by higher living expenses. He said the result was a growing gap between paper gains and actual living standards.
The survey, based on 528 valid responses collected between November 2025 and February 2026, also points to a workforce that is still concentrated in relatively modest income bands. Grant Thornton Bharat said 58% of respondents earn less than Rs 15 lakh a year, while only 12% make more than Rs 40 lakh. Most reported annual income gains of just 4% to 12%, and only around 6% said their pay had risen by more than 20%. The report also found that 82% believe their compensation does not properly reflect their skills, underscoring a widespread sense of being underpaid even among workers who consider themselves highly qualified.
The financial strain is compounded by household responsibilities. Nearly three-quarters of respondents support at least one family member, and about one-third said they are the sole breadwinner. The burden is heavier among men than women, according to the report, while housing costs remain a particular issue in larger cities, where renting is common. Although 84% of respondents said they had some form of emergency savings, Grant Thornton Bharat found that almost 83% believed those funds would last less than a year if income stopped. Retirement planning looks even weaker: 83% said they were not prepared for later life, rising to 92% among those under 34.
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