What Salary is Considered Rich in India Per Month?

Updated: October 2023

Defining riches in India can be a subjective and variable measure, influenced by a multitude of factors, including personal financial status, location, and lifestyle. Here, we explore the nuanced landscape of what constitutes a rich salary in India and highlight key insights to help you understand the current financial landscape.

Defining Wealth in India

The level of wealth in India can be categorized into several groups, ranging from the ultra-wealthy to the middle class. For instance, having a net worth of INR 10 crore (approximately $1.3 million) would place someone in a very comfortable financial position, while INR 100 crore (approximately $13 million) would categorize an individual as ultra-wealthy. However, these benchmarks are more indicative of financial independence and may not fully capture the concept of being rich.

Richness and Basic Needs

Financial richness can be gauged by one's ability to cover basic needs, as well as afford luxury items. According to many financial experts, if you can afford a house, clothing, and food easily, you fall into the middle class. However, if you can comfortable afford luxury items such as cars and travel, you are considered rich. True financial richness goes beyond just income; it includes accumulated wealth through investments, property, and other assets.

Income Thresholds for Richness

While there is no single threshold that defines what is considered a rich salary, certain income levels are often cited:

Top 1 Earners: To be among the top 1 earners in India, you would need a monthly salary of around INR 4.5 lakhs (approximately $6,000). High Earners: An income of INR 1.5 to 2 lakhs per month (approximately $2,000 to $2,700) is generally considered rich in India, placing individuals in the top 5 percent of earners. Rich Salaries in Urban Centers: In cities like Mumbai and Hyderabad, where the cost of living is higher, a monthly salary above INR 15 lakhs (approximately $21,000) may be required to be considered rich. Conversely, in smaller towns, a salary of INR 5 lakhs (approximately $7,000) might suffice. Financial Independence: Financial independence can be achieved by those earning over INR 10 lakhs per month (approximately $13,000), but personal definitions of financial independence can vary.

Cost of Living and Relocation

The cost of living plays a significant role in determining what constitutes a rich salary. Indian cities like Mumbai and Delhi have a higher cost of living compared to smaller towns and rural areas. Therefore, to be considered rich, one would need a higher salary in these metropolitan areas. Additionally, individuals seeking financial independence may need to consider diversifying their income sources, including passive income, to achieve their goals.

Additional Insights

While income is a key factor in defining richness, it is not the only measure. Accumulated wealth through investments and property can contribute significantly to a person's overall financial status. Financial experts recommend a monthly salary of over INR 1 lakh (approximately $1,300) as a starting point for considering someone rich in India. However, it is important to consider the location and lifestyle expectations, as these can influence the perception of financial richness.

Financial indices and surveys provide further context. For example, the survey suggests that earning over INR 1 lakh per month places individuals in the top 1 percent of earners in India. Moreover, a net worth of around INR 20 lakhs (approximately $26,000) is often considered to provide financial comfort.

Lastly, it is crucial to remember that the definition of a rich salary varies significantly depending on individual circumstances. What is financially rich for one person may not be the same for another. Therefore, it is important to set personal financial goals, understand the local cost of living, and seek professional advice to navigate the nuances of financial richness in India.