Middle-Class Squeeze: Earning Well but Still Scraping By? Insights from Ireland and India
Why Middle-Income Earners Are Struggling Despite Good Salaries – And What Lies Ahead
In today’s fast-paced world, earning a decent income doesn’t always mean financial security. Many middle-class families find themselves in a tough spot: earning well but struggling to cover basic expenses. This issue isn’t unique to one country—it’s a global challenge. A recent article from The Irish Times, titled Earning well but still scraping by? Your situation may be about to get worse, highlights this problem in Ireland. But what does this mean for India, where millions of middle-class families face similar pressures?
This post explores the financial struggles of middle-income earners in Ireland and India, drawing parallels between the two economies. We’ll examine why this “middle-class squeeze” happens, what the future might hold, and practical steps you can take to navigate these challenges. Whether you’re a young professional, a parent managing family expenses, or a student planning your financial future, this guide offers valuable insights.
(Insert infographic here: A bar graph showing the percentage of middle-class families in India and Ireland who are struggling financially. Use data from sources like NCAER for India and Central Statistics Office for Ireland.)
The Middle-Class Squeeze in Ireland
In Ireland, about one million taxpayers earn between €35,000 and €80,000 annually—roughly a third of all earners. Despite these decent incomes, many families have little to no money left at the end of each month. Here’s why:
Economic Growth vs. High Costs: Ireland has enjoyed a decade of strong economic growth, with a robust jobs market allowing many to secure higher-paying roles. However, Ireland is one of the most expensive countries globally, especially for housing and renting. Prices have been driven up by foreign direct investment (FDI) sectors, making it tough for domestic earners to keep up.
Government Policies Under Pressure: To ease the burden, the Irish government introduced tax reductions and temporary cost-of-living payments. For example, last year’s budget added about 3-3.5% to the annual earnings of someone making €50,000. However, these supports may be scaled back due to global economic uncertainties, such as potential US trade tariffs, which could strain public finances.
Rising Family Costs: The cost of raising a child in Ireland has surged, with the average annual cost now over €15,300—40% higher than a decade ago. Middle-income families, who often don’t qualify for extensive government aid, struggle to afford these rising costs without stretching their budgets.
Cost-of-Living Crisis: While inflation has eased, prices remain high compared to pre-crisis levels. Individual earnings haven’t grown significantly in real terms, and households that have seen income improvements often rely on multiple earners, such as both partners working or children entering the workforce.
(Insert chart here: A comparison of average monthly costs for housing, education, and healthcare in Dublin vs.Source data from real estate websites like and Irish Central Statistics Office.)
Similarities with India
India’s middle class, defined as those earning between ₹5 lakh and ₹30 lakh annually, faces strikingly similar challenges. According to a this group makes up about 31% of India’s population. Yet, many struggle to maintain their standard of living.
Economic Growth and High Costs: Like Ireland, India has seen significant economic growth, driven by sectors like IT and services. However, this growth hasn’t benefited everyone equally. In tier-1 cities like Mumbai, Delhi, and Bangalore, living costs are soaring:
- Housing: The average price of a house in Mumbai is around ₹1.5 crore, far beyond the reach of most middle-class families. Even in smaller cities, property prices are rising steadily
- Education: Private schools in urban areas charge annual fees upwards of ₹1 lakh per child, and higher education, especially abroad, can cost lakhs of rupees.
- Healthcare: While schemes like Ayushman Bharat provide some relief, they don’t cover outpatient or primary care, leaving families to pay out-of-pocket for many expenses.
Government Support Gaps: India’s government has introduced initiatives like Pradhan Mantri Awes Yojana (PMAY) for housing and Ayushman Bharat for healthcare. However, these often target lower-income groups, leaving the middle class underserved. Middle-income earners earn too much for subsidies but not enough to comfortably afford rising costs.
Inflation’s Impact: Inflation remains a concern. According to the Reserve Bank of India, retail inflation was 4.85% in March 2025—within the target range but still adding to the cost of living. Food and fuel price fluctuations hit family budgets hard.
Consider Ramesh, a teacher from a small village in Maharashtra. He earns ₹30,000 per month, above average for his area. However, after paying for his children’s education, medical expenses for his elderly parents, and maintaining his modest home, he has little left for savings. Unexpected expenses, like a medical emergency, often force him to borrow money or dip into his provident fund. Ramesh’s story reflects the reality for many middle-class families across India.
Why are middle-income earners in Ireland and India finding it so hard to get ahead? Here are the key reasons:
Inflation and Rising Costs: The cost of essentials like housing, education, and healthcare rises faster than wages, reducing purchasing power. For example, if prices increase by 5% annually but your salary grows by only 3%, you’re effectively earning less.
Stagnant Wages: In many sectors, wages haven’t kept pace with inflation. Nominal raises don’t always translate to real growth in buying power.
Debt Burden: Many families carry significant debt—home loans, education loans, or credit card debt—which consumes a large portion of their monthly budgets.
Lifestyle Inflation: As incomes rise, so do expectations. Families often spend more on non-essentials, leaving less for savings.
Lack of Financial Planning: Without proper budgeting or investment strategies, it’s easy to live pay check to pay check.
This “squeezed middle” phenomenon affects those who earn too much for government aid but not enough for financial comfort—a situation all too familiar in both Ireland and India.
The future may bring more challenges. In Ireland, the government faces tough choices: continue cost-of-living supports and risk straining public finances, or cut back and leave families worse off. Global uncertainties, such as trade tariffs, could exacerbate fiscal pressures.
In India, the government must balance short-term relief with long-term sustainability. While schemes like PMAY and Ayushman Bharat help, they’re not enough for the middle class. Long-term solutions—like investing in affordable housing, improving public education and healthcare, and creating more job opportunities—are crucial.
Both countries need to shift from temporary cash supports to building robust services in childcare, health, education, and infrastructure—areas that directly impact middle-class families.
Feeling overwhelmed? Here are practical steps to strengthen your financial position:
Budgeting: Use the 50/30/20 rule—50% of your income for needs (rent, groceries, bills), 30% for wants (entertainment, dining out), and 20% for savings and debt repayment. Apps like Money control or Walnut can help track expenses.
Investing: Start small with systematic investment plans (SIPs) in mutual funds or fixed deposits. Over time, these can grow your wealth. Platforms like Zeroth or Grow make investing accessible.
Side Hustles: Explore freelance work, consulting, or online gigs to boost income.
Financial Education: Learn about personal finance through books like Rich Dad Poor Dad or online courses on Coursera or Udemy.
Advocacy: Join groups advocating for better policies for the middle class. Your voice can shape a more equitable future.
(Insert flowchart here: A step-by-step guide to financial planning—starting with assessing income and expenses, setting goals, creating a budget, saving and investing, and monitoring progress.)
Conclusion
The middle-class squeeze is a real challenge, affecting families in both Ireland and India. Despite earning decent incomes, many struggle with rising costs, stagnant wages, and limited government support. However, by understanding these challenges and taking proactive steps, you can build a more secure financial future.
With proper planning, discipline, and a bit of creativity, you can navigate these tough times and even thrive.
Call to Action: Share this post with friends and family facing similar challenges. For more personal finance tips, check out our guide on or join our community forum to share your experiences and tips. Take our financial health quiz to see how well you’re managing your money: How do you rate your current financial situation? A) Comfortable B) Just getting by C) Struggling D) Other.
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