Are your household expenses exceeding your salary? You are not at all alone in this case. Only 29 percent of Indian employees are happy with their salaries, while the rest are planning to ask for a raise due to increasing inflation, and hardly any employees can make ends meet. According to the Association of Chartered Certified Accountants, the cost of living is a major concern in 2026 across the globe, with fears of jobs being replaced by technology. Around 81 percent are planning to raise their pay by next year. This is higher compared to 67 percent in 2025 and 62 percent globally.
This has put pressure on employers as the cost of living is affecting household budgets in India. Millennials are most likely to ask for a salary hike, while the rest of the 90 percent are planning to ask for a raise in the next 12 months. This report highlights that at least a 10 percent hike employees are expecting. Millennials are expecting a 55 percent raise, while Gen Z is at 60 percent, and Gen X workers are expecting a 76 percent raise.
Another important factor for Indian employees is compensation. Mid-level employees are giving importance to work and pay, while employers are facing pressure to balance salary hike expectations and employee retention strategies.
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