If You Earn Rs 25,000 Per Month, You Are Among India's Top 10 Per Cent (2024)

State of Inequality in India: The report shed light on the income inequality in India. It stated that only 10 per cent of Indians earn higher than Rs 25,000 per month. Read more insights here.

New Delhi: If you earn Rs 25,000 a month in India, you are among the top 10 per cent in terms of income. According to the latest ‘State of Inequality in India’ report released by the Institute of Competitiveness, the nature of a person’s job determines the level of income. Moreover, only 3 per cent of Indians earn over Rs 25 lakh per year.

The report said, “If an amount like this comes in the top 10 percentile, then the bottom-most condition cannot be imagined…the benefits of growth should be equally distributed…”.

The report released by Chairman, Economic Advisory Council, Bibek Debroy, recommended a scheme to provide a universal basic income to support the urban jobless. The data was taken from the Periodic Labour Force Survey (PLFS) 2019-20.

Bibek Debroy stated, “Inequality is an emotive issue. It is also an empirical issue, since definition and measurement are both contingent on the metric used and data available, including its timeline”. He continued, “To reduce poverty and enhance employment, since May 2014, Union Government has introduced a variety of measures interpreting inclusion as the provision of basic necessities, measures that have enabled India to withstand the shock of the Covid-19 Pandemic better.”

More Salaried People Have High Income

According to the report, as the income levels rise, so does the share of the salaried class. In the income bracket of less than Rs 5,000, 75.58 per cent of people are self-employed. Whereas, 21.6 per cent are salaried individuals.

In the income bracket of over Rs 1 lakh, 41.59 per cent are salaried individuals and 43.99 per cent are self-employed.

The share of casual workers is maximum in the bracket of Rs 20,000-50,000 at 31.4 per cent.

Males Still Earn More Than Females

The report also showed that males continue to enjoy higher salaries than their female counterparts. This phenomenon is similar in urban as well as rural parts of the country.

“The average monthly salary of regular salaried/wage earners in July-September 2019 amounted to Rs 13,912 for rural males and Rs 19,194 for urban males. Employed females in rural parts earned Rs 12,090 in the same period while females in urban India earned an average Rs 15,031,” it said.