Are salaries ready for 'scary' expenses? IITian breaks down real cost of living in big Indian cities

The growing mismatch between salaries and expenses in India’s biggest cities is putting immense pressure on working professionals. With essentials, housing, and education costs steadily rising while pay hikes remain muted, many employees are struggling to maintain financial stability. Highlighting this concern, IIT graduate and Rainbow Money founder Siddharth Mukund recently shared a detailed post on LinkedIn, describing the current situation as “scary” for urban households.

From Predictability to Instability

Mukund explained that before the pandemic, double-digit annual salary hikes were common. Many employees felt confident enough to take long-term loans and plan EMIs with the assumption of steady growth. Corporate jobs were considered risky but still offered predictability in terms of income progression.

The picture today, however, is strikingly different. Mukund pointed out that job stability has become rare, with even established companies reducing their workforce. In the technology sector, employees who manage to retain their positions are often receiving pay hikes of less than 5%.

Mounting Burden of Loans and Insurance

According to Mukund, the shift in salary trends has led to a worrying financial imbalance. He observed that a large section of working professionals now spend 40–50% of their monthly income on EMIs and insurance premiums. This is significantly higher than the recommended 25–30% level, putting extra stress on household budgets.


Recurring concerns in conversations with professionals, he added, include rising school fees, healthcare costs, and daily essentials that are growing at a pace far beyond salary increments. What was once considered a milestone purchase, such as owning an apartment, has turned into a major source of anxiety for many families.

Job Changes Driven by Survival

Mukund highlighted that the motivation behind switching jobs has also undergone a fundamental change. In the past, career moves were mostly about ambition or growth. Now, many employees are forced to seek job changes that promise a 25–30% salary increase, not for career advancement but simply to stay financially afloat.


The IITian noted that as a result, highly skilled professionals are making compromises on workplace culture, personal time, and long-term career planning in order to manage immediate financial pressures. He stressed that the assumptions that shaped salaried life over the last decade no longer hold true and that both employers and employees must acknowledge the new reality.