New data shows disconnect between rising salaries and growing dissatisfaction among India’s youngest workforce
India, June 2025 – Two-in-five of the Gen Z white-collar workforce (41%) in India are unhappy with their current pay, according to new research commissioned by Deel, the all-in-one payroll and HR platform for global teams. It is most apparent in metros like Delhi/NCR (55%) and Mumbai (48%), likely due to higher cost of living. This is in spite of the fact that Indian Gen Z recorded the fastest salary growth (11%) globally, according to Deel’s internal database.
At the root of Gen Z’s salary dissatisfaction is the growing financial strain. The research found that the top reasons attributed to the dissatisfaction includes lack of inflation-adjusted hikes (21%), below-market compensation (19%), salaries insufficient to cover needs beyond basic expenses (14%) and poor salary growth (13%).
The study, conducted between April-May 2025, surveyed 2,508 full-time, white-collar Gen Z professionals (ages 20-28, with 0-3 years of work experience) across 7 Indian cities and 10 sectors.
Increasing gap between generations for perks and benefits
Beyond concerns about pay, a significant number of Gen Z employees (61%) feel that older colleagues are given preferential access to career development opportunities and workplace benefits. This includes promotions and leadership opportunities, training and development access, and workplace flexibility and perks, amongst others.
This perception contributes to a growing sense of inequity and dissatisfaction, as younger employees feel overlooked despite their skills and willingness to adapt. Many interpret this gap as a lack of investment in their long-term growth, which can affect engagement and retention.
Losing Gen Z talent to higher paying global competitors
As a result of growing unhappiness, nearly three-in-five (69%) are ready to switch jobs and more than half (51%) would accept a fully remote job with a global company if a better salary offer comes along.
This inclination is particularly high in cities like Bangalore (74%), Mumbai (67%), and Chennai (65%). These urban hubs have a high concentration of tech-savvy youth who are more exposed to global work trends and see international roles as a way to break through local pay limitations.
“It’s clear that companies risk losing their top Gen Z talent to higher-paying, more flexible global roles if they don’t adapt. While compensation is still a major concern, organizations must also offer flexibility to stay competitive. Solutions like Employer of Record are making it easier for companies to hire talent remotely across borders, enabling professionals to access faster career growth, global exposure, and better pay, all on their terms.
At Deel, we see firsthand how this approach helps employers drive stronger engagement and loyalty,” said Sumit Sabharwal, Country Leader for India at Deel.
Delivering for your future talent
For business leaders looking to attract and retain the next generation of talent, there’s a delicate balancing act: Aligning workplace policies with the demands and expectations of Gen Z staff, while also addressing the needs of the wider multi-generational workforce.
For businesses looking to get ahead, reviewing approaches to overall compensation can be an effective first step given wage growth remains stilted across demographics. For instance, Deel’s State of Global Compensation Report found that the rising inflation is outpacing India’s 3% salary growth YoY. The data shows that in real terms, salaries are back -2.5% YoY.
Similarly, offering greater flexibility allows Gen Z needs to be met without alienating older workers. A Deel survey of more than 57,000 professionals on LinkedIn found that 73% felt all companies should offer hybrid working options, a lever that can be pulled to serve multiple age groups at once.
Sumit added, “Understanding how different generations view work is essential. Bridging the gaps that impact various age groups allows businesses to support younger employees while still valuing the needs of older ones. While Gen Z may be leading the charge in seeking global opportunities, older professionals are just as likely to follow suit if their expectations are not addressed.”
In-depth findings from Deel’s Gen Z Salary Satisfaction Survey 2025:
Salary dissatisfaction runs high even with rising pay
Despite Indian Gen Z workers receiving the highest average salary hikes (~11%) in APAC, dissatisfaction with compensation remains widespread. This reveals a growing gap between rising pay and rising expectations, especially in metros and service-heavy sectors.
Many Gen Z workers cite lack of pay parity, and stagnant salary growth as reasons for feeling undervalued. Inflation and rising cost of living are other major concerns.
A recent poll forecasts that rental costs in urban areas are anticipated to increase by 7% to 10%, significantly outpacing the expected consumer inflation rate of around 4.3%- 4.4% over the next two fiscal years. These rising costs, coupled with inflationary pressures are eroding the purchasing power of young professionals, leading to a sense of financial instability despite salary increases. This highlights the need for organizations to consider not just salary hikes but also the broader economic factors affecting their employees.
- Nearly 7 in 10 (67%/~70%) dissatisfied Gen Z workers say their compensation fails to match inflation, adequate hikes, industry benchmarks or basic costs of living
- 41% of Gen Z employees are dissatisfied with their current pay; only 27% are satisfied
- Salary dissatisfaction is highest in metro cities: Delhi/NCR (55%), Mumbai (48%), Chennai (38%).
- 21% of dissatisfied respondents say they did not receive pay hikes to match inflation
- 19% say their salary is below market standards
- 13% are unhappy with salary growth over the past year
Job-switch intent is alarmingly high
The survey reveals strong enthusiasm for remote, global work, especially within tech-savvy youth and in metro locations. For many, the promise of higher pay, flexibility, and international exposure outweighs the appeal of traditional local jobs. Gender also plays a role, with women and non-binary respondents showing significantly higher openness.
- 51% of Gen Z would accept a remote role with an overseas company if it came with a pay raise
- Bangalore (74%), Mumbai (67%), and Chennai (65%) lead in remote job interest
- 61% of women and 60% of respondents identifying as Other/non-binary prefer remote global work, compared to 41% of men (Note: Other gender in this report refers to respondents who selected the ‘other’ option in the gender field of the survey. This includes individuals who identify as non-binary or do not exclusively identify as male or female)
Perceived inequality in the workplace
Many Gen Z employees believe older colleagues receive better career opportunities and benefits (distinct from salary). This sentiment was especially pronounced in traditionally hierarchical sectors, reflecting intergenerational tension and a desire for more equitable recognition and growth paths.
- 61% of Gen Z respondents feel older colleagues get better perks and growth opportunities
- 42% strongly agree with this perception
Sector-wise trends: Where Gen Z is most restless
The survey reveals sharp contrasts across industries when it comes to salary dissatisfaction, job-switch intent, and openness to global roles. While IT and Professional Services lead in remote readiness and switch intent, sectors like manufacturing and education are grappling with widespread dissatisfaction. These numbers show that Gen Z isn’t just reacting to low pay; they’re evaluating industries by flexibility, opportunity, and perceived fairness. Sectors with traditional hierarchies and in-person requirements may face a steeper challenge in retaining early-career talent.
Salary dissatisfaction is highest in:
- Manufacturing (53%)
- Educational Services (50%)
- Healthcare (48%)
Job-switch intent is highest in:
- IT (85%)
- Professional Services (77%)
- BFSI/Fintech (73%)
- Educational Services (71%)
Openness to remote global roles is strongest in:
- IT (84%)
- Professional Services (70%)
- Construction & Real Estate (58%)
Survey Sample
The Gen Z Salary Satisfaction Survey 2025 was conducted by Valuvox in partnership with Deel in April-May 2025. It surveyed 2,508 full-time, white-collar Gen Z professionals (ages 20–28, with 0–3 years of experience) across seven Indian cities (Delhi/NCR, Mumbai, Chennai, Bangalore, Nagpur, Coimbatore, Nasik) and ten industry sectors. Responses were collected via a structured online questionnaire using multiple-choice formats. Data was analyzed by city, sector, gender, and experience level. The overall sample size allows for statistically significant insights at the national level, with valid drill-downs by gender, city, and sector.
About Deel
Deel is the all-in-one payroll and HR platform for global teams. Built for the way the world works today, Deel combines HRIS, payroll, compliance, benefits, performance, IT asset equipment management into one seamless platform. Deel offers the world’s leading Employer of Record (EOR) service, enabling companies to hire employees in over 150 countries without setting up local entities, managing payroll, taxes, and compliance from day one. With AI-powered tools and a fully owned payroll infrastructure, Deel supports every worker type, helping businesses scale smarter, faster, and more compliantly.
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