Can staying in the same job for too long quietly hurt your financial future? According to CA Nitin Kaushik, many salaried professionals may be underestimating what he calls the hidden cost of career stagnation. In a series of posts on X, Kaushik argued that remaining in one role for years without meaningful income growth or skill development can gradually erode financial progress.

Kaushik described this phenomenon as the “Loyalty Tax”, warning that salary growth often fails to keep pace with rising living costs in India.

“Staying in the same job for five years is often a quiet form of financial suicide in a high inflation economy like India. The Loyalty Tax is real,” Kaushik said.

His comments come at a time when urban households are dealing with increasing expenses linked to housing, healthcare and education. According to Kaushik, professionals relying solely on routine annual salary increments may be overlooking a critical financial reality.

“While you wait for a 10% annual increment, the cost of education, healthcare, and real estate in Tier 1 cities is growing at 12% to 14%,” he said.

He argued that professionals need to ask themselves a fundamental question: Is their income growth actually outpacing inflation?

“If your income isn’t growing at least 15% year on year, you aren’t just stagnant — you are effectively getting poorer every month,” Kaushik added.

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Are your skills growing with the market?

Kaushik also urged professionals to examine whether their skills are evolving alongside changing workplace demands, especially as artificial intelligence reshapes industries.

“Most professionals feel safe in their comfort zone, not realizing that their skill set is becoming a legacy asset in an AI-driven market,” he said.

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According to him, one of the biggest reasons for slower salary progression is the absence of skill stacking — continuously building complementary capabilities that increase professional value.

“The most common reason for a stalled salary is a lack of Skill Stacking. If you are doing the exact same work in 2026 that you did in 2023, you have zero leverage during appraisal discussions,” he said.

Kaushik believes salary growth increasingly depends on the complexity of problems employees can solve rather than time spent in an office.

“In a competitive market, you are paid for the difficulty of the problems you solve, not the number of hours you sit at a desk,” he noted.

He added that professionals who fail to develop capabilities such as automation, data strategy or specialized expertise may find themselves with limited bargaining power.

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Switch jobs more often?

Kaushik also pointed to strategic job switching as a major driver of income growth.

“Strategic job switching is the only reliable alpha for a salaried professional,” he said.

He argued that companies frequently allocate larger budgets for hiring new talent than for retaining existing employees.

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“If you aren’t testing your market value every 24 months, you are leaving millions of rupees on the table over the course of your career,” Kaushik said.

For professionals wondering whether staying too long in one role is hurting their finances, Kaushik’s message is clear: career growth and income growth require active effort rather than passive loyalty.

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Published on: May 20, 2026 7:35 AM IST