Nearly three-quarters (73 per cent) of Indian employers acknowledge that rising living costs are directly affecting their workforce, according to Indeed's 'Cost of Living Survey' released on Tuesday, 9 June. The findings point to a widening gap between what employees earn and what everyday life in India now costs — a pressure that is reshaping hiring expectations, workplace demands, and income strategies.

What Employers Are Noticing

More than half (56 per cent) of employers report growing salary expectations from their staff, while over one-third (36 per cent) have seen increased demand for flexible work arrangements. Despite recognising these pressures, the survey notes that most organisations have not significantly adapted their compensation or workplace policies in response.

This disconnect between employer awareness and employer action is a central finding of the report — and one that carries implications for talent retention in an increasingly competitive job market.

How Employees Are Experiencing the Squeeze

The employee-side data paints a more urgent picture. About 68 per cent of employees say their current income does not comfortably support their lifestyle. Within this group, 32 per cent say their salary is only just enough to manage expenses, 24 per cent describe their finances as difficult to manage, and 12 per cent report experiencing significant financial stress.

The pressure also appears to be building over time. Two in five employees (41 per cent) say they feel more financially stressed today than they did two years ago, suggesting that rising expenses are continuing to outpace financial confidence for a large share of India's workforce.

Workers Are Adapting — With or Without Employer Support

As financial strain deepens, employees are increasingly taking matters into their own hands. More than one-third (36 per cent) say rising living costs have made them actively seek or remain open to better-paying opportunities elsewhere.

Secondary income streams are also becoming more common. Fourteen per cent of employees say they regularly earn through side work or freelancing, while another 19 per cent do so occasionally. A further 24 per cent say they are considering starting an additional income source. Taken together, this means nearly six in 10 employees are either already supplementing their primary income or actively considering doing so — reflecting a broader shift toward financial diversification rather than reliance on salary growth alone, the report noted.

What the Industry Is Saying

Sashi Kumar, Managing Director of Indeed India, said the findings present an opening for employers willing to listen. 'For employers, this could be an opportunity to better understand how workforce expectations are evolving. Compensation remains important, but employees are increasingly evaluating the overall quality and sustainability of work,' Kumar said.

His remarks suggest that salary alone may no longer be sufficient to retain talent — and that benefits, flexibility, and financial wellness support are becoming part of the employer value proposition that workers now weigh seriously.

The Broader Outlook

This survey arrives amid sustained inflationary pressure across urban India, where housing, food, and transport costs have risen sharply over the past two years. The data underscores a structural challenge: if employers do not move beyond awareness to tangible policy changes, the talent churn driven by cost-of-living anxiety is likely to intensify. For India's labour market, the question is no longer whether the cost-of-living crisis is real — it is whether employers will act before attrition forces their hand.