A higher salary is often seen as the obvious next step towards financial stability. But a technology professional’s comparison of salaries and living expenses across major Indian cities offers a different perspective: a bigger paycheck does not necessarily mean bigger savings.In an Instagram video, tech professional Sumit compared what earning ₹1 lakh a month could look like in Bengaluru, Delhi, Noida, and Gurugram. His analysis focused on an issue that is often overlooked when professionals evaluate a new job: the amount they are actually able to retain after meeting their monthly expenses.
Salary is only one part of the calculation
For professionals considering relocation for a better-paying job, the headline salary can be tempting. A significant jump in the annual package may appear to make a move worthwhile, particularly when the new role offers better career prospects.However, Sumit argued that employees should assess the effective financial benefit of a salary hike rather than simply comparing annual packages.According to him, professionals moving to Bengaluru need to account for several recurring expenses, including accommodation, food, daily transportation and other living costs. These expenses can substantially reduce the additional income generated by a higher salary.
Bengaluru’s higher expenses can eat into earnings
Bengaluru is among India’s biggest technology and employment hubs, attracting professionals from across the country. The city also has a relatively high cost of living, particularly in areas close to major employment centres.Sumit pointed out that rent and commuting costs can become significant expenses for employees who relocate to the city. For someone moving from a city where they already live with their family, the financial calculation can therefore change considerably.An employee who receives a higher salary in Bengaluru may simultaneously take on expenses that did not exist, or were considerably lower, while living at home.
Travelling home adds another expense
One expense that can easily be missed in a relocation calculation is the cost of travelling back home.Professionals living away from their families may return periodically, particularly during festivals, holidays or important family occasions. For those travelling long distances, flights can add a sizeable recurring cost.Sumit estimated that a round-trip flight home could cost around ₹20,000, depending on the destination and circumstances. For employees who make such journeys several times a year, the expense can become a meaningful part of their annual budget.
₹10 lakh annual expense estimate
Taking rent, food, and travel into account, Sumit estimated that the overall cost of living for a professional in Bengaluru could reach around ₹10 lakh a year.The figure is not a universal expense benchmark and can vary significantly depending on a person’s accommodation, lifestyle, location, commuting habits and frequency of travel. However, it illustrates the broader financial question employees should ask before accepting a seemingly lucrative offer.
Bigger package, but not necessarily bigger savings
Sumit’s larger argument is straightforward: salary growth should be measured against the increase in living costs.For instance, someone earning a lower salary while living with family in Delhi may have comparatively fewer expenses. If that person receives an additional ₹10 lakh in annual compensation to move to Bengaluru, a substantial portion of the increase could be absorbed by rent, food, commuting and journeys home.The decision to relocate, therefore, cannot be based solely on the number printed on an offer letter. Professionals need to compare their post-expense income, savings potential and quality of life before deciding whether a salary hike is genuinely financially beneficial.
