Rs 35,000 Average Monthly Salary In Metro Cities: Report
Hyderabad has the highest personal monthly income at Rs 44,000
The average personal monthly income in 2024 stands at Rs 35,000 for metros and Rs 32,000 for Tier 1 and Tier 2 cities, showing an increase from Rs 33,000 (Metros), Rs 30,000 (Tier 1), and Rs 27,000 (Tier 2) in 2023, highlighted a report by Home Credit India (HCIN), a local arm of global consumer finance provider.
The study titled ‘The Great Indian Wallet’ mentioned that among metros and Tier 1 cities, Bangalore, Hyderabad and Pune emerged as pivotal hubs, offering newer and better prospects for consumers seeking advancement. These cities witness a rise in income levels, with Bangalore and Hyderabad leading with incomes 15 per cent and 33 per cent higher than the national average, respectively.
The study also provides an overview of the income and expenses among lower-middle-class individuals in 2024. On average, the personal monthly income of lower-middle-class individuals is around Rs 33,000, while monthly expenses stand at Rs 19,000 in 2024. The growth in income over the past year has kept pace with the increase in expenses.
In terms of Wallet Share, the study revealed that Grocery (26 per cent) and Rent (21 per cent) continue to be the primary expenses dominating the wallet share of the average lower-middle-class Indian. This is followed by Commute (19 per cent), Children’s Education (15 per cent), Medical Expenses (7 per cent), Electricity Bills (6 per cent), Cooking Gas (4 per cent), and Mobile Bills (2 per cent).
As for ‘Discretionary Spends’, distinct spending patterns among different demographics could be seen. Chennai leads in local travel/sightseeing (59 per cent), eating outside (54 per cent) and watching movies outside (55 per cent) when compared to other metros. Lucknow, on the other hand, is the lowest spender on local travel or sightseeing (17 per cent) and eating outside (14 per cent). Chennai also pays the highest rent (29 per cent), while Kolkata and Jaipur pay the lowest (15 per cent).
Ahmedabad and Dehradun spend the least on fitness (1 per cent). Bengaluru and Kochi spend the most on children’s education (23 per cent). Dehradun tops in medical expenses (13 per cent) but spends the least on children’s education (10 per cent).
Ashish Tiwari, chief marketing officer (CMO), Home Credit India said, “The Great Indian Wallet study serves as our compass, guiding us through the intricate landscape of consumer financial behaviour each year. By delving into the underlying behavioural trends, we gain valuable insights into household financial stability and the potential risks associated with technology in financial transactions. This year’s study reflects an upswing in the overall Financial Well-Being among urban and semi-urban consumers due to the strong economic growth, providing a clear insight into consumer sentiments, spending patterns, and saving habits among various demographics and segments.”
Household Expenses witness a notable uptick, with an average increase of 6 per cent. In households with more than one earning member, the chief wage earner (CWE) contributes about 80 per cent of the total household expenses, while non-CWE contributes around 20 per cent. In the study, 42 per cent of the women are CWE in their respective households.
In terms of Savings, around 60 per cent of consumers prioritise building a cash reserve to address emergency expenses after covering their monthly fixed expenses. According to the study, Men (62 per cent) outpace Women (50 per cent) in savings.
Similarly, Gen Z (68 per cent) demonstrates a stronger inclination towards savings than Millennials (62 per cent) and Gen X (53 per cent). Regionally, consumers from the East exhibit higher savings rates (63 per cent) compared to those from the West (61 per cent), South (59 per cent) and North (59 per cent). Furthermore, metros led in savings, with 62 per cent of urban consumers prioritising savings over Tier 1 (61 per cent) and Tier 2 (54 per cent) cities.
The Great Indian Wallet study was conducted across 17 cities including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Lucknow, Jaipur, Bhopal, Patna, Ranchi, Chandigarh, Dehradun, Ludhiana and Kochi. The sample size was approx. 2500 in the age group of 18-55 years, with an annual income between Rs 2 lakh to Rs 5 lakh.
