Rising inflation and the increasing cost of living have significantly impacted professionals working in major Indian cities, particularly in the IT hub of Bengaluru. A recent social media post highlighting this issue has gone viral.
Bengaluru: A surprising debate has ignited on social media originating from Bengaluru, India's leading tech hub. While an annual salary of ₹50 lakh (5 million rupees) is typically considered financially robust, a recent assertion claims its real value is now equivalent to ₹25 lakh (2.5 million rupees). This statement has sparked a storm online, with some agreeing and others questioning the figures and the underlying premise. The core issue is the declining purchasing power in Bengaluru despite high salaries and escalating inflation.
A Simple Yet Resonant Viral Tweet
The controversy began with a tweet by user Saurabh Datta, which read:
"I hear many in Bengaluru's IT sector earn ₹50 lakh annually. Either they're inflating their CTC, or ₹50 lakh is now worth ₹25 lakh."
This tweet ignited a social media debate, with thousands voicing their opinions, some in agreement and others in dissent.
High Salaries Diminished by Inflation?
Bengaluru, often called India's Silicon Valley, faces a cost of living comparable to any major metropolis. Rent, school fees, medical expenses, food, and the cost of private vehicles have placed a significant burden on even high-earning employees.
One user responded:
₹50 lakh now feels like ₹10 lakh. Rent, children's school fees, a private car, lifestyle expenses, and EMIs have consumed everything.
Another user commented:
If you're not earning ₹1 crore (10 million rupees) in Bengaluru, you're probably wasting your time.
The Reality of the Tech Industry: The Significant Gap Between CTC and Take-Home Pay
A significant portion of the debate centered on the disparity between CTC (Cost To Company) and take-home salary. Large tech companies like Microsoft, Amazon, and Google offer substantial CTC packages, but a large portion is allocated to RSUs (Restricted Stock Units), bonuses, insurance, and PF (Provident Fund).
One user explained:
Microsoft offers a ₹50 lakh package, but the base salary is only ₹16 lakh. The remaining amount is tied up in stocks that may vest over 3-4 years. The actual take-home salary often doesn't exceed ₹1.2 lakh per month.
Lifestyle Also a Contributing Factor?
Bengaluru's lifestyle also significantly impacts high-income earners. Upscale housing, international schools, car payments, travel, and weekend parties collectively place a substantial burden on the average mid-senior tech employee.
One user wrote:
I have a ₹50 lakh package, but my savings at the end of the month are minimal. Dealing with traffic jams and paying children's school fees consumes all my earnings.
Is This Just a Bengaluru Phenomenon?
The debate prompted comparisons with other cities.
One user stated:
This is specific to Bengaluru. In Hyderabad, ₹25 lakh still feels like ₹25 lakh. Expenses are also lower in Delhi and Pune.
This highlights the significant role of a city's cost of living index. Bengaluru's high real estate prices, traffic congestion, fuel costs, and private service expenses diminish the perceived value of high salaries.
2005 vs 2025: The Decline in Salary Value
One user questioned, "What year are you comparing this to?" This emphasizes the erosion of the rupee's purchasing power due to inflation over the past 15-20 years. The value of ₹50 lakh in 2005 is significantly less today, making even an average lifestyle challenging to maintain.
For example, a 2BHK flat in areas like Whitefield, Bengaluru, cost ₹30-35 lakh in 2005; today, it costs over ₹1 crore. School fees, previously ₹20-25 thousand annually, are now in the lakhs.
Social Image and Mental Pressure
Another interesting aspect highlighted was the pressure of social status and appearances. High earners often strive to maintain a certain lifestyle regarding housing, clothing, vehicles, and children's education, increasing financial pressure.
Many noted that tech employees are expected to live an "elite" lifestyle, leading to both increased mental stress and expenses.
What's the Solution?
- Amidst the debate, several positive suggestions emerged, including:
- Personal budgeting: Creating a clear plan for monthly income and expenses
- Realistic stock/RSU assessment: Stock value can fluctuate; don't consider it guaranteed income
- Smart investment: Investing in safer options like mutual funds, SIPs, and fixed deposits instead of excessive spending
- Living in lower-cost areas: Choosing areas in Bengaluru with lower rent and good connectivity
- Utilizing work-from-home opportunities: Saving more by relocating to smaller cities if remote work is feasible
