Cost of living doesn't influence salaries; Pune among safest cities: KPMG Survey

Cost of living in a particular city does not influence the compensation packages for talent, a survey of recruitment leaders undertaken by a consultancy firm revealed. Around 95 per cent of human resources leaders and talent acquisition heads from 40 companies across 10 sectors said "cost-of-living differences across Indian cities do not affect compensation decisions," as per the survey by KPMG in February and March.

Earlier, there used to be a city compensatory allowance to compensate for a higher cost of living in metros or tier-I cities, but HR heads say very few employers are offering it now, it said, adding the compensation range is more or less the same for the same roles across the country.

Employees consider residential rent, property indices, local purchasing power, and overall cost of essentials like goods, utilities, and transportation when evaluating the cost of living, it said.


The survey found Pune among the cities to be excelling on the safety aspect.

"Chennai, Navi Mumbai and Pune excel in safety, attracting those seeking secure environments," the survey said.

Apart from safety, key factors which influence the quality of living include connectivity, commute time, healthcare, and air quality, the survey said.

Navi Mumbai, Hyderabad, and Chennai lead the cities with competitive commercial leasing prices, it said. The survey report also said that companies tapping into talent pool in satellite cities like Gurugram, Navi Mumbai and Noida are highly satisfied, and added that the attrition rates are low in such cities.

It said tactical and transformational work takes place in tier-I and satellite cities, while the tier-II cities have to contend with transactional roles.