Only 29% Indians Happy With Salaries, Majority Planning Pay Hike Demands: Report

A growing number of Indian employees are preparing to seek salary increases as rising living costs continue to strain household budgets, according to a new survey report by the Association of Chartered Certified Accountants (ACCA).

The report found that only 29 per cent of Indian employees are satisfied with their current salary levels, highlighting widespread concerns around compensation and financial security.

According to the survey, 81 per cent of respondents in India plan to ask their employers for a pay raise in the next 12 months. This marks a significant jump from 67 per cent in 2025 and is also far above the global average of 62 per cent.

The report stated, "Both globally and in India, the proportion of those seeking to ask for a pay rise has risen since 2025 - with 81 per cent of respondents in India planning to ask their employer for a pay rise in the next 12 months, higher than the 67 per cent in 2025 and the 2026 global average (62 per cent)".

The findings underline how inflation and higher day-to-day expenses are reshaping employee expectations in India’s workforce.

What Are Employees Most Worried About in 2026?

The survey identified the rising cost of living as one of the biggest work-related concerns for employees globally in 2026.

In India, it emerged as the second biggest concern after fears linked to jobs being replaced by technology and automation. The report suggests that economic uncertainty and rapid technological change are simultaneously influencing employee sentiment.

As essential expenses such as housing, transportation, education and healthcare continue to rise, workers are increasingly focused on securing better pay packages to maintain their standard of living.

Which Age Groups Are Most Likely to Demand Higher Salaries?

The report showed clear differences across age groups when it comes to salary expectations.

Millennials emerged as the most aggressive group in seeking pay hikes, with 90 per cent saying they plan to ask for salary increases over the next year. This was higher than Gen Z employees at 77 per cent and Gen X workers at 75 per cent.

The findings indicate that mid-career professionals may be feeling greater financial pressure due to responsibilities such as family expenses, home loans and long-term financial planning.

How High Are Salary Expectations Among Indian Employees?

Indian employees are not only more likely to seek salary hikes, but they are also expecting larger increases compared to workers globally.

According to the survey, around 68 per cent of Indian respondents expect salary hikes of more than 10 per cent. In comparison, only 37 per cent of respondents globally expect similar increases.

Among employees expecting hikes above 10 per cent, Gen X workers reported the highest expectations at 76 per cent, followed by Gen Z at 60 per cent and Millennials at 55 per cent.

These figures reflect growing confidence among employees about negotiating better compensation as companies continue to compete for skilled talent.

Why Are Employers Facing Increasing Pressure?

The report highlighted that compensation remains the most important factor for employees, especially among younger professionals who are prioritising higher take-home pay.

At the same time, the survey noted that mid-career employees are increasingly looking for a balance between financial rewards and meaningful work.

The report said employers are increasingly facing pressure to balance rising salary expectations with profitability and retention strategies.

For companies, this creates a difficult challenge. Businesses may need to offer better compensation packages to retain talent while also managing operating costs and protecting profit margins in an uncertain economic environment.

The survey suggests that salary negotiations and employee retention could become major workplace themes in India over the next year as economic pressures continue to build.

(With inputs from ANI)