Living in the city: How much should you earn to have a decent life in Mumbai?

Mumbai — or as many call it “the city of dreams” — attracts thousands of people every year with the promise of giving them a thriving career and a better life. As it is a hub for commerce, trade, business and creative careers, the city offers plentiful employment opportunities in many sectors. However, its reputation of being the “financial capital of India” has also made it one of the most expensive cities. Geographical constraints, high property prices and rental, heavy healthcare expenses and several other factors contribute to its high cost of living. To give you an idea of the amount you need to earn for a decent life in this city, ET Online, in association with recruitment consultant AVSAR, has analysed data on the salaries at various levels and roles, monthly living costs, utility and healthcare expenses, and more. We also interacted with people living in Mumbai to give you an idea of the expenses.

Here is a snapshot of the analysis:

1. Transportation Cost

According to data provided by Navneet Singh, founder & CEO of AVSAR, autorickshaws, local trains and buses are commonly used for everyday travel in the western suburbs (Andheri, Bandra, Juhu).

Monthly travel expenses by train (2nd class) can cost Rs 500-Rs 1,200, while auto fares can be Rs 2,000-Rs 4,000 based on daily travel needs. Uber or Ola rides add significantly to the budget.When it comes to south Mumbai (Colaba, Marine Drive, Worli), which is considered a posh and elite part of the city, public transport is efficient but more expensive. Monthly train passes may range from Rs 600-Rs 1,500. Auto fares and cab services are costlier at Rs 3,000-Rs 5,000 per month. Navi Mumbai and Thane have slightly cheaper transport options, with monthly train expenses at Rs 400-Rs 1,000. Longer commutes might still result in higher costs of Rs 1,500-Rs 3,000.

2. Everyday meals and cost of occasional eating out

In the western suburbs, eating out at mid-range restaurants can cost Rs 300-Rs 500 per meal, with daily meal expenses working out to Rs 10,000-Rs 12,000 for casual dining. Since south Mumbai falls on the more expensive side, this cost ranges from Rs 500-Rs 800 at mid-range places here; monthly expenses could rise to Rs 12,000-Rs 15,000. Navi Mumbai and Thane offer more affordable meals when compared with south Mumbai at an everyday cost of Rs 200-Rs 400, and Rs 8,000-Rs 10,000 if calculated monthly.

3. Rent estimates

If you have plans to stay in the western suburbs, you have to pay Rs 35,000-Rs 50,000 per month for a 1 BHK apartment, and Rs 60,000-Rs 1,00,000 for a 2BHK, depending on the proximity to business hubs like Bandra-Kurla Complex (BKC).

The rent in South Mumbai is almost double what you might pay for a similar accommodation in the western suburbs — Rs 50,000-Rs 1,00,000 per month for 1 BHK and Rs 1,00,000-Rs 2,50,000 or more for 2 BHK.

Thane and Navi Mumbai are more affordable at Rs 15,000-Rs 30,000 per month for 1 BHK and Rs 30,000-Rs 60,000 for 2BHK. Clearly, it is much lower than central Mumbai.

4. Other living costs

For utilities (electricity, gas, water), one has to pay Rs 3,000-Rs 6,000 per month for 1-2 BHK, depending on air conditioning and other utilities. Entertainment and leisure activities like gym memberships cost Rs 1,500-Rs 4,000 per month; movie tickets Rs 200-Rs 500, and internet Rs 700-Rs 1,500 per month. However, these figures may get influenced by the part of the city you live in.

Now let us assess the average salary levels in formalised jobs.
Average salary in Mumbai (by level)

A fresher with the skills and knowledge that are in demand can make Rs 3,00,000-Rs 5,00,000 per annum in the western suburbs, Rs 4,00,000-Rs 6,00,000 per annum in south, and around Rs 2,50,000-Rs 4,50,000 per annum in Navi Mumbai and Thane.

Mid-level professionals (5-10 years of experience) can expect a pay structure of Rs 8,00,000-Rs 12,00,000 per annum in western suburb, Rs 10,00,000-Rs 15,00,000 per annum in south Mumbai, and Rs 7,00,000-Rs 10,00,000 per annum in Navi Mumbai and Thane.

Senior professionals (10+ years of experience) can command a salary of Rs 20,00,000-Rs 30,00,000 per annum in western suburbs, Rs 25,00,000-Rs 40,00,000 per annum in south, and Rs 15,00,000-Rs 25,00,000 per annum in Navi Mumbai & Thane.

Here are some real-life experiences based on the survey.

Expense and earning predictions as per job roles (survey findings)

A teacher living in Powai and earning Rs 40,000-50,000 a month spends around Rs 30,000 on utilities every month and Rs 1,500 for a visit to a doctor. A senior consultant earning Rs 4 lakh per month and living in a 2BHK apartment in the same region spends Rs 25,000-Rs 30,000 on utilities. In these two situations, the monthly expenditure on utilities is not that much as most people likely do not pay rent as they live in their own houses.

The costs depend heavily on whether you are a single earner in the family or not.

A corporate chef with an income of Rs 1,50,000 a month spends a major part of his income (as much as Rs 1,00,000) on utilities (electricity, transportation, housing and groceries), and leisure activities.

A procurement manager with a pay package of Rs 14,00,000 per annum spends Rs 65,000 each month on utilities; while an ERP consultant from Vasai earning Rs 9 lakh per annum spends around Rs 30,000-Rs 35,000 each month on utilities. Similarly, a procurement executive from Thane who earns Rs 5 lakh per annum spends around Rs 36,000 on utilities and leisure outings. A GM in the procurement space earning around Rs 20,00,000 per annum spends more or less Rs 50,000 a month on utilities.

Do these people see themselves living in Mumbai considering these expenses? Out of the 13-14 professionals we interacted with, 10 said that they would like to continue to live in the same city; one said they had no choice; one wasn’t sure; and one responded with a no.