Salary dissatisfaction is on the rise among Indian employees as the cost of living, financial pressures and other factors have a negative impact on their satisfaction with their salaries, according to a new survey released by the Association of Chartered Certified Accountants (ACCA).
Key Highlights
- Only 29% of Indian employees are satisfied with their current salaries amid rising living costs
- Around 81% of workers in India plan to seek salary hikes over the next 12 months
A significant fraction of the Indian workforce is now considering asking for pay hikes over the next year, owing to the inflationary pressures and household costs that have been affecting personal finances, the report reveals. 81% of Indian respondents report that they are planning to push for a pay increase from their employers compared with a global average of 62% and an increase from 67% in 2025.
The rising cost of living is one of the top concerns at work for employees worldwide in 2026, and it's the second largest concern for Indian employees, after the fear of job displacement due to technology and automation, according to ACCA.
Millennials Lead Salary Hike Expectations
Strong salary expectations were identified across all generations with the Millennials being the most aggressive generation for salary increases. 90% of Millennials in India will be asking for a pay raise over the next year, while 77% of Gen Z workers and 75% of Gen X employees will be doing so as well.
Indian employees are also expecting a much bigger pay increase than the rest of the world. 68% of the Indian respondents expect salary increases of more than 10% compared to 37% for the global respondents. Of the respondents who are hoping for double-digit growth, Gen X employees are the highest at 76%, followed by Gen Z at 60% and Millennials at 55%.
The findings coincide amid the inflationary pressures that companies are experiencing across India, changing workplace expectations and heightened competition for skilled talent. Although the world economy is faced with uncertainties, a few recent industry studies suggest that salary hikes are likely to be relatively strong in India in 2026.
A recent study by Aon India Salary Increase Survey has estimated an average 9.1% salary increase in India for 2026, up from the recorded 8.9% in 2025.
Also Read: India's New Labor Codes 2026: Impact on Salary, PF, and Work Culture
Employers Face Growing Wage Pressure
The compensation remains as the top driver of employee choice, especially for younger workers seeking to boost their disposable income in the face of increasing costs, the ACCA report said.
The survey, however, also revealed that mid-career professionals have become more concerned with the quality of life, growth and satisfaction in addition to salary.
Employers are likely to be under greater pressure in the coming quarters to reward employees with higher compensation while keeping profits high, retaining workers and dealing with a variety of business and economic challenges, according to the industry experts.
The results also mirror broader economic fears associated with inflation, geopolitical concerns and technological change and its impact on the workplace. Operating costs and economic instability are key issues facing the world in 2026, according to the latest Global Economic Conditions Survey released by ACCA.
Organizations may be looking to increasingly implement performance based incentives, flexible benefits and retention pay strategies to meet the increased expectations of employees and preserve margins, HR analysts report.
Given that the Indian labor market is competitive, salary negotiations and employee retention may be crucial focus areas for businesses across industries in FY27, experts say.
