‘EMIs now eat up 50% of salaries’: Startup founder sounds alarm, flags lifestyle crisis in cities

In a LinkedIn post that quickly sparked debate, Rainbow Money founder Siddharth Mukund warned of an unsettling shift among India’s urban professionals, saying “something scary is quietly brewing in India’s major cities.”

While economic ups and downs are part of the cycle, Mukund noted that this moment feels different. “The motivation behind changing jobs has fundamentally shifted,” he wrote.

Pre-pandemic, double-digit hikes were the norm and EMIs were planned with confidence. Today, even traditionally stable employers are downsizing, and salary hikes in big tech often fall below 5% — leaving many professionals stretched thin.

Mukund flagged a sharp rise in financial strain: 40-50% of salaries are now going toward EMIs and insurance premiums, far above the 25-30% considered healthy. Professionals are increasingly anxious about school fees, healthcare, and essential expenses outpacing their earnings. Dream homes have become burdens, and job switches are driven more by survival than ambition, with many seeking 25-30% hikes just to stay afloat.

“The expectations that shaped salaried life for the last 10 to 15 years no longer hold,” Mukund cautioned, urging professionals and employers alike to recognize this structural shift.

The post drew strong reactions. One commenter wrote, “Job switches are less about ambition now and more about survival. Families are cutting back, choosing affordability and practicality over aspiration.” Another called it “a disruption waiting to happen,” advising professionals to return to basics—spend less, save more, and prioritize family and health.