'The ₹50 LPA trap': Advisor explains why high salaries in India don’t feel rich
“It takes 4 to 5 years just to accumulate ₹1 crore if you are salaried,” she wrote. Meanwhile, a businessman earning ₹1 crore may legally pay less tax than someone on a ₹50 lakh salary — thanks to India’s tax structure, which rewards entrepreneurship but offers fewer breaks for employees.
- Nov 13, 2025,
- Updated Nov 13, 2025 8:31 AM IST
A ₹50 lakh salary might sound like a dream in India but as wealth advisor Chandralekha MR points out, the reality for high-earning salaried professionals is far from luxurious.
In fact, many find themselves unable to shop confidently at airport luxury stores, weighed down by taxes, living costs, and a system that quietly favors entrepreneurs over employees.
In a LinkedIn post, Chandralekha broke down the financial math that often shocks salaried earners: a ₹50 lakh CTC translates to roughly ₹37 lakh after taxes. For professionals living in metros like Mumbai, Delhi, or Bengaluru, about ₹9–10 lakh vanishes annually just to cover basic living expenses. What remains — around ₹27 lakh — must stretch across savings, investments, and lifestyle choices.
“It takes 4 to 5 years just to accumulate ₹1 crore if you are salaried,” she wrote. Meanwhile, a businessman earning ₹1 crore may legally pay less tax than someone on a ₹50 lakh salary — thanks to India’s tax structure, which rewards entrepreneurship but offers fewer breaks for employees.
This stark imbalance, she says, is “the invisible trap of being salaried in India.”
Chandralekha referenced a recent post where a ₹50 LPA earner confessed he still felt hesitant buying luxury items at airport stores like Dior or Swarovski. She noted that these spaces aren’t built for salaried professionals — even those earning at the top of the bracket. Instead, they cater to a different clientele entirely: “the generationally wealthy, foreigners on layovers, and people who don’t count monthly salaries.”
If salaried professionals use airport luxury as a benchmark for success, they risk constant dissatisfaction. “You are setting yourself up for disappointment,” she warned.
But her message wasn’t all doom and gloom. She emphasized that ₹50 lakh is still enough to live comfortably in India — if managed wisely. Key, she says, is understanding tax planning, avoiding lifestyle inflation, and making intentional investment decisions.
“Genuine wealth has nothing to do with walking into premium airport stores without checking price tags,” she wrote. “It’s about designing a financial life where you control your money, rather than chasing more of it.”
A ₹50 lakh salary might sound like a dream in India but as wealth advisor Chandralekha MR points out, the reality for high-earning salaried professionals is far from luxurious.
In fact, many find themselves unable to shop confidently at airport luxury stores, weighed down by taxes, living costs, and a system that quietly favors entrepreneurs over employees.
In a LinkedIn post, Chandralekha broke down the financial math that often shocks salaried earners: a ₹50 lakh CTC translates to roughly ₹37 lakh after taxes. For professionals living in metros like Mumbai, Delhi, or Bengaluru, about ₹9–10 lakh vanishes annually just to cover basic living expenses. What remains — around ₹27 lakh — must stretch across savings, investments, and lifestyle choices.
“It takes 4 to 5 years just to accumulate ₹1 crore if you are salaried,” she wrote. Meanwhile, a businessman earning ₹1 crore may legally pay less tax than someone on a ₹50 lakh salary — thanks to India’s tax structure, which rewards entrepreneurship but offers fewer breaks for employees.
This stark imbalance, she says, is “the invisible trap of being salaried in India.”
Chandralekha referenced a recent post where a ₹50 LPA earner confessed he still felt hesitant buying luxury items at airport stores like Dior or Swarovski. She noted that these spaces aren’t built for salaried professionals — even those earning at the top of the bracket. Instead, they cater to a different clientele entirely: “the generationally wealthy, foreigners on layovers, and people who don’t count monthly salaries.”
If salaried professionals use airport luxury as a benchmark for success, they risk constant dissatisfaction. “You are setting yourself up for disappointment,” she warned.
But her message wasn’t all doom and gloom. She emphasized that ₹50 lakh is still enough to live comfortably in India — if managed wisely. Key, she says, is understanding tax planning, avoiding lifestyle inflation, and making intentional investment decisions.
“Genuine wealth has nothing to do with walking into premium airport stores without checking price tags,” she wrote. “It’s about designing a financial life where you control your money, rather than chasing more of it.”