Archive · 3 Aug 2026
Tax Filing Rise Masks India's Wage Stagnation
In India, more people are now filing taxes because they earn between 10 and 50 lakh rupees a year.
This sounds good, but their salaries have barely gone up in ten years.
When you adjust for inflation, workers actually have less buying power now.
Most people still work in informal jobs, like street vendors or small farmers, and they earn very little.
Even though some workers earn a bit more, many self-employed people are earning less, showing that wages are not keeping up with the cost of living.
Number of salaried taxpayers in the Rs 10‑50 lakh bracket increased over sevenfold between 2012‑13 and 2022‑23.
Share of total declared salary income for this group rose from ~25% to ~50%, yet average salary grew only 2.8% over ten years.
Real purchasing power of middle‑class workers fell by about 40% after inflation.
Informal employment fell only slightly, from 92.2% to 90.3% of total employment, with most workers still earning ≤Rs 7,500/month.
Real earnings of casual workers rose modestly, but self‑employed earnings declined, highlighting inadequate wage growth.
- Who
- Indian salaried and informal workers, tax authorities
- What
- Rise in tax filings alongside stagnant wages and declining purchasing power
- When
- 2012-13 to 2022-23
- Where
- India
- Why
- Formalization of incomes without adequate salary growth and high inflation
- Period of comparison
- 2012-13 to 2022-23
- Middle-class tax bracket
- Rs 10 lakh to Rs 50 lakh
- Increase in middle-class taxpayers
- over sevenfold
- Average salary growth
- 2.8% over ten years
- Inflation-adjusted purchasing power decline
- about 40%
- Informal employment share
- 92.2% to 90.3%