Rising living costs are forcing Indian employees to rethink how they work, where they live and what they expect from their careers, according to a new survey by hiring platform Indeed.
The findings highlight a widening gap between salary growth and financial comfort. Nearly 68% of employees surveyed said their current income does not comfortably support their lifestyle. Within this group, 32% said they are just managing expenses, 24% find finances difficult to handle, and 12% report significant financial stress. Only 13% said their income comfortably covers their cost of living.
Financial pressure is also intensifying over time. About 41% of respondents said they feel more financially stressed today than they did two years ago, pointing to rising costs outpacing income gains.
The impact is visible in workplaces. Around 73% of employers said rising living costs are affecting employees within their organisations. More than half (56%) reported higher salary expectations, while 36% saw increased demand for flexible work arrangements.
However, most companies have yet to respond meaningfully. Over three-fourths of employers (77%) said they have not introduced new measures to help employees manage these pressures. Sashi Kumar, Managing Director, Indeed India, said the trend presents “an opportunity to better understand how workforce expectations are evolving,” noting that employees are increasingly evaluating “the overall quality and sustainability of work” beyond compensation.
As pressure mounts, workers are diversifying income sources. About 36% said they are actively seeking better-paying opportunities, while side hustles are becoming more common. Fourteen percent of employees regularly earn through freelancing or secondary work, and another 19% do so occasionally. A further 24% are considering starting an additional income stream.
Affordability is also reshaping geographic preferences. Housing costs emerged as the biggest challenge, cited by 39% of respondents, followed by commute times and daily expenses. More than half of metro-based workers (54%) said they would consider relocating to Tier-2 or Tier-3 cities if comparable job opportunities were available.
Employers are beginning to take note, with 43% saying smaller cities are becoming more central to hiring strategies.
Despite the financial strain, higher salaries are not the only priority. Job stability ranked highest (41%) among factors influencing career decisions, followed by better pay (30%), lower cost of living (28%) and work-life balance (25%).
The survey, based on responses from 1,207 employees and 1,013 employers, points to a workforce recalibrating expectations as affordability pressures reshape both work and life decisions.