The Unseen Struggles of Salaried Taxpayers
India’s salaried taxpayers, particularly software engineers, are the backbone of the nation’s economy. They contribute significantly to the country’s revenue, facing income tax rates ranging from 5% to 30% based on their earnings. However, behind these numbers lies a reality of long hours, relentless stress, and daily sacrifices that often go unnoticed.
The Real Challenges for Software Engineers
Contrary to the common perception of a comfortable lifestyle, software engineers endure a range of challenges that make their lives far from easy. The job demands extended working hours, late-night calls, and constant pressure to meet tight deadlines. Family time often becomes a luxury, and even basic needs like sleep and proper meals are frequently compromised. Moreover, the global nature of their work means that Indian festivals or onshore holidays are not always observed, adding to the strain. The struggle is not just professional but deeply personal, as these engineers balance the demands of their jobs with the challenges of daily life.
The Financial Burden
The financial burden on software engineers is substantial. For example, someone earning ₹1 lakh per month may end up paying nearly ₹30,000 in taxes. This amount could cover essential monthly expenses like rent, groceries, and utilities, especially in metro cities where living costs have soared.
In cities like Bangalore and Hyderabad, rental costs for a modest apartment can range from ₹25,000 to ₹60,000 per month, further straining their budgets. Playgroup school fees alone can range from ₹40,000 to ₹1.5 lakh per year. Additional expenses, such as EMIs, healthcare costs, and commuting, further strain their finances, leaving little room for savings or investment.
International Examples: Benefits Provided to Taxpayers
Germany: Offers unemployment benefits, healthcare, and pensions, providing a safety net for those who lose their jobs.
Canada: Provides a comprehensive healthcare system funded by taxes, along with unemployment benefits and retirement savings plans.
Australia: Offers a mix of healthcare benefits, pension schemes, and social security, ensuring that taxpayers receive support during tough times.
France: Provides social security benefits, including health insurance, unemployment benefits, and family allowances, all funded by taxes.
These countries understand the importance of supporting their taxpayers and have established systems to offer a range of benefits that help ease the financial pressures faced by working professionals.
A Request for Fairness
While paying taxes is a civic duty, it is crucial for the Indian government to recognize the unique challenges faced by salaried employees, particularly those in the software industry. Software jobs often come with instability, frequent layoffs, and the ever-present risk of market fluctuations or technological disruptions. Despite contributing a significant portion of their income to taxes, these professionals receive little in terms of financial security or benefits.
It is time for the Indian government to re-evaluate its policies and provide tangible support to those who contribute so much to the nation’s growth. Offering tax rebates, healthcare benefits, or job loss insurance—similar to the systems in place in other developed countries—would create a fairer and more supportive environment for taxpayers. Such measures would not only benefit the taxpayers but also strengthen the overall economy.