Freshers’ Salary Hikes Aren’t Keeping Pace With Inflation

Spread the news

Salaries have risen, but so has spending. The solution? Start investing early.

Freshers today earn more but also spend more. Picture these situations: The rent due date is approaching, basic grocery bills resemble a frantic shopping spree, and every fortnightly petrol bill leaves one gasping for air .According to NDTV Profit,  after countless UPI payments, checking the account balance becomes a dreaded task. The starting salary that once looked lavish suddenly does not have enough zeroes in it.

The news outlet reported that entry-level salaries have jumped significantly in recent years. Foundit reports that the average salary has risen to Rs 3 to 6 lakh per year. “There has been a significant jump of 25-33% in the salary of the workforce aged 21-30,” said Chitra Sumbrui, senior vice president at Brijj. This increase has been driven by high-growth sectors such as technology, digital marketing, and e-commerce. However, cities, especially metro areas, have seen a rapid increase in the cost of living. “Base-level salaries have increased, but inflation adjustment is only limited to certain industries,” said Suchita Dutta, executive director of the Indian Staffing Federation.

.The NDTV Profit reported that start with a systematic investment plan (SIP) as early as you can. The amount you invest does not matter as long as you stick to an SIP and stay invested. For instance, a fresher who took a job in 2019 with a Rs 4.5 lakh salary per annum started an SIP of Rs 7,500, which is 20% of their salary, in a direct Nifty 50 index fund. Starting early allows you to control the variables of time and amount in your favor, according to Santosh Joseph, founder of Germinate Investor Services.