Key Takeaways:
- An ACCA survey revealed 81% of Indian employees plan to ask for a salary hike in 2026.
- Only 29% of workers report feeling satisfied with their current pay, below the 36% global average.
- Driven by inflation, 68% of Indian respondents expect double-digit raises, led by Millennials and Gen X.
More than eight in 10 Indian employees plan to seek salary hikes in 2026 as rising living costs and inflation deepen dissatisfaction with current pay levels, according to a new survey by the Association of Chartered Certified Accountants.
India’s salary discontent is becoming more visible as only 29% of Indian employees say they are satisfied with their current salaries, the ACCA survey found. About 81% expect to ask for higher pay over the next 12 months, up sharply from 67% in 2025 and well above the global average of 62%.
The findings reflect growing financial pressure on households as everyday expenses continue to rise. Cost-of-living concerns rank among the top workplace issues globally and stand as the second biggest concern for Indian employees after fears over job displacement caused by advancing technology.
“Employees are increasingly feeling that current compensation is not keeping pace with inflation and higher living costs,” the report said.
Millennials Lead Push for Double-Digit Salary Hikes
Millennials are the most likely age group to demand higher salaries, with 90% planning to request pay increases, according to the survey. Gen Z workers follow at 77%, while 75% of Gen X employees also expect to seek higher compensation.
India’s salary discontent is also reflected in stronger salary expectations compared with workers in many other countries. About 68% of respondents in India expect salary hikes exceeding 10%, nearly double the global average of 37%.
Among employees expecting double-digit raises, Gen X workers report the highest expectations at 76%, followed by Gen Z at 60% and Millennials at 55%.
The report suggests younger professionals continue to prioritize higher take-home pay, while mid-career workers increasingly balance compensation with job satisfaction and meaningful work opportunities.
“Compensation remains a key factor for attracting and retaining talent, especially among younger employees,” the survey noted.
Employers Face Pressure to Retain Talent
The widening gap between employee expectations and employer budgets could create challenges for companies already dealing with cost pressures and economic uncertainty.
Globally, 36% of employees report satisfaction with their current compensation, compared with only 29% in India. The disparity highlights stronger wage pressures in one of the world’s fastest-growing major economies.
Human resources experts say companies may need to reassess compensation structures and workplace benefits to retain skilled employees in a competitive labor market.
“Organizations will need to balance profitability with rising employee expectations if they want to maintain workforce stability,” the report said.
The ACCA survey comes as businesses continue adjusting to inflationary pressures, evolving workplace expectations, and rapid technological change, reshaping industries and employment patterns across India’s salary discontent landscape.
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