Concerns over stagnant salaries and rising living costs are increasingly shaping workplace sentiment among Indian employees. Many professionals feel that their current pay no longer matches their financial needs. As inflation and day-to-day expenses continue to rise, conversations around fair compensation and salary growth have become more prominent across industries.
Employees To Seek Pay Hikes
Reflecting this growing dissatisfaction, ACCA's Global Talent Trends 2026 report revealed that 81% of Indian employees are planning to ask their employer for a pay rise in the next 12 months. Out of which, 68% are expecting a hike of more than 10%.
Cost of living remains the top work-related concern globally. For India, it's the second-highest-rated, behind jobs being replaced by technology. Almost all respondents are seeking job security that's not affected by uncertainty around AI and the geopolitical climate.
More than 90% of Indian respondents seek at least one steady role. While 57% want freelance work, 36% want just one steady role. That focus on stability is reflected in retention data — 47% aim to switch roles in the next year compared to 55% in 2025.
AI Adoption in the Workplace
AI use is rising fast in hiring and at work, but the anxieties about its impact remain the same. AI tools see extensive use in India, with 57% of employees using the technology in their current role. 52% are confident that an AI algorithm can support fair, unbiased recruitment.
Most respondents feel confident learning and applying AI-related skills, while some feel overwhelmed by the pace of change at work and worry about AI's impact on their role.
Hybrid vs Traditional In-Office Work
Hybrid work remains the preferred model, even as support for intentional office presence grows. While return-to-office mandates increase, most employees still favour flexibility. In India, 79% prefer hybrid work and 53% already use a hybrid model.
Willingness to be in the office is also rising, with organisations requiring set office days each week. Career growth is a key factor. Employees believe that more office presence improves promotion prospects.
Mental Health at Workplace
Although mental health continues to be a workplace challenge, the progress of the cause has lost momentum. 53% of Indian respondents cite work pressure as harmful to mental health in 2026, only a small increase from 51% in 2025.
Millennials are most affected at 55%, closely followed by Gen Z at 54%. 36% say employer support is insufficient, and 67% want more help managing mental health.
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