Significant percentage of employees prioritize savings, investment under new tax rules: Report

Mumbai, September 9 (PTI) six months after the new tax regime came into effect from 2025-26, a report found that employees tilted to financial caution, with 57 percent of respondents channeling their surplus income in savings and investments. Professionals earning up to £ 12.75 lakhs per year (LPA) prioritize savings, investments and repayment of debt over discretionary spending, six months after the new FY26 tax regime came into effect on Tuesday, a report revealed by Naukri Tuesday. The report is based on the nationwide recording of Naukri from more than 20,000 professionals earning up to £ 12.75 lpa, which now falls into the zero tax heel. However, the report found that the awareness of the new tax regime remained uneven. While Freshers is the most informed, with 64 percent reporting the benefits of the benefits awareness, 43 percent of respondents admitted that they were either unclear or completely unaware of the changes, the report added. According to the report, 57 percent of respondents are channeling their surplus income in savings and investments, while 30 percent use it to repay debt. Only a small fraction targets the extra money on immediate consumption, with 9 percent upgrading their lifestyle and just 4 percent in travel and relaxation, the report states. The report also emphasized a clear distinction in the industry, with professionals in emerging technologies leading 76 percent saving their surplus income, followed by Auto (63 percent) and Pharma (57 percent). Employees in FMCG (64 percent) and hospitality (more than 60 percent) are one of the most dedicated to long-term retirement planning and investments, he added. In addition, Delhi and Gurgaon professionals are above the cards in savings, with 63 percent and 64 percent respectively, which set aside their surplus income, it said. Chennai stood out with 44 percent of respondents focusing on debt repayment, while Mumbai emerged as the leader in pension -oriented savings, with 51 percent channeling their extra income specifically for pension funds, he added.