What does ‘middle class’ really mean in India? Even Rs 2.5 lakh monthly earners say they are not ‘rich’. 3 factors can explain why

For one person, earning Rs 2.5 lakh a month may sound like a very comfortable income. For another, especially someone living in a major Indian city, the same amount may not feel enough to be called rich. This difference led to another discussion online about what being middle class in India actually means.

A Reddit user recently raised the question after speaking to someone who earns more than Rs 2.5 lakh every month but still considers himself middle class. The discussion that followed showed why income alone may not be enough to decide where a person stands financially.

Income is only one part of the picture

Several people on Reddit pointed out that there is no single definition of middle class in India. A person's city, family income, number of dependents, lifestyle, assets and even liabilities can change the picture considerably.


One commenter summed up the problem by saying, "They are sort of correct. Middle class extends from poor all the way to the rich."

Another user said that people may continue using the middle-class label because they grew up with it and do not always reassess it as their financial position changes. The person also pointed out that the gap between ordinary wealthy people and the ultra-rich can be so large that even someone objectively rich may feel comparatively average.

That feeling can become stronger in big cities, where people regularly see others with expensive homes, cars and much higher incomes.

Rs 2.5 lakh can mean different things in different cities

Location emerged as one of the biggest factors in the discussion. A monthly income of Rs 2.5 lakh in a Tier-1 city can look very different from the same income in a smaller city.

One Reddit user argued, "In tier-1 cities, 2.5 LPM is actually middle class".

The cost of housing was one reason behind this argument. Another commenter said that in Bengaluru, a decent 3 BHK can cost around Rs 75,000 in rent, leaving much less from a Rs 2.5 lakh monthly income after housing and other expenses.

The original post itself also acknowledged this difference, noting that Rs 2.5 lakh in Mumbai may not provide the same lifestyle as Rs 2.5 lakh in a smaller city.

Wealth and assets can matter more than salary

Another major point raised in the discussion was that income and wealth are not the same thing. Someone who has recently started earning Rs 3 lakh a month but is paying education loans, home loans and family debts may have a very different financial position from a person earning Rs 1 lakh a month who already owns property and receives rental income.

As one commenter put it, "Class is built over decades with assets so your assumption of classifying monthly salary income as class is wrong."

This is also why some people believe net worth and the amount of money that can actually be accessed may give a better picture than salary alone. A high salary does not automatically mean a person has accumulated wealth.

Lifestyle also changes the definition

The Reddit discussion also showed how differently people define upper middle class. Some linked it to the kind of home, car, holidays and travel a person can comfortably afford. Others felt that international holidays, business-class flights and five-star stays already move someone into the rich category.

One commenter described lifestyle as being driven by wealth rather than income, while another argued that a person who still needs a salary to maintain their lifestyle should not necessarily be considered rich.

There were also people who said they knew individuals earning Rs 5 lakh to Rs 10 lakh a month who still considered themselves middle class.

So, the three broad factors emerging from the discussion are income, location and accumulated wealth, with lifestyle and family responsibilities affecting how that money actually translates into financial comfort.

Why so many people still call themselves middle class

The discussion also touched on a less measurable factor: perception. A person may have moved far ahead financially compared with their earlier life but still compare themselves with people who have substantially more wealth.

One commenter explained it this way: "By any objective definition, I am rich. But when I look at the bungalows of the ultra rich, I feel like I'm so very far away from that!"

Another person said there is also a social stigma around openly calling oneself rich in India, which may make people more comfortable describing themselves as middle class.