Some senior bank executives are heard saying – “You are getting ₹1 lakh per month and still doing nothing.” This statement is becoming more common in public sector banks in India. But this raises an important question — is ₹1 lakh per month really enough in today’s India? In this article, we will consider only three important factors – house, medical and education and understand whether Rs.1 lac per month salary is enough in India or not.
The Reality of Salaries vs Cost of Living
On paper, ₹1 lakh per month may look like a good salary. However, when compared with the actual cost of living, the reality is very different. Today, the cost of a basic duplex or independent house in many Tier-2 and Tier-3 cities has already crossed ₹1 crore. Cities like Indore, Bhopal, Jaipur, Nagpur, Ranchi, and even smaller district headquarters are seeing sharp increases in real estate prices.
An income of ₹1 lakh per month is decent, but it is not excessive by today’s standards. In many small and Tier-2 cities such as Agra, Gwalior, and Kanpur, the average cost of a simple duplex house is already around ₹1.2 crore. With a monthly income of ₹1 lakh, owning a house in Tier-1 cities like Noida, Mumbai, Bengaluru, or Gurugram is almost unimaginable.
If a person plans to buy a duplex worth ₹1.2 crore, that amount is more than ten years of total salary, even if every rupee earned is saved, which is practically impossible. In reality, if a person is able to save only 50% of the salary, it would take over 20 years just to accumulate the house value. The remaining salary naturally goes towards household expenses, children’s education, healthcare, insurance, and daily living costs.
Now let’s talk about Medical
When it comes to medical care, the situation becomes even more worrying. Most bank employees do not have access to a strong in-house medical facility. Instead, they are covered under third-party health insurance schemes, where a large number of claims are either delayed or rejected by the insurance company.
Medical costs are rising significantly faster than general inflation globally. In India, the medical inflation is around 14-15%, double the general rate, causing treatment costs for major illnesses to skyrocket, making adequate health insurance essential.
The medical cover is usually limited to around ₹5 lakh, and even this amount is available only in cases of hospitalisation. Expenses such as regular medicines, diagnostic tests, follow-up treatment, and chronic illness management are not reimbursed. As a result, employees are forced to bear most medical expenses from their own salaries.
In case of a serious illness or repeated treatment, this limited insurance cover becomes insufficient very quickly. For bank employees and their families, healthcare often turns into a major financial burden, adding stress to an already demanding work environment.
Now let’s talk about Education
Education costs in India are rising very fast and have become a major financial burden for households. Education inflation is often 8–12% per year, which is much higher than general inflation. School fees, coaching classes, higher education, and professional courses are becoming increasingly expensive.
Private Schools in India are charging approximately Rs.15,000 per month as tuition fees for a child studying in Class 12th. The fees for B.tech is approximately Rs 1.5 lac per semester. Families are forced to spend a large part of their income on education. For middle-income earners, especially salaried employees, managing education expenses along with housing, healthcare, and daily needs has become extremely challenging.
So, what’s the conclusion? Is Rs.1 lac enough per month?
An income of ₹1 lakh per month is a respectable salary that allows a person to live with dignity in society. However, considering today’s inflation and rising costs, this income is enough only to maintain a decent standard of living. It is not an excessive salary by any measure, and certainly not one that justifies senior executives belittling or insulting junior employees. Respect at the workplace should never be linked to the size of one’s salary.