Summary
**Unveiling the Demise of Traditional Salaried Jobs – Insights from Marcellus Investment CEO Saurabh**
Traditional white-collar salaried employment in India, once the cornerstone of the country’s growing middle class, is undergoing a significant decline. Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers, has emerged as a prominent voice highlighting this shift, describing it as the “death of salaried employment” for educated and hardworking individuals. He attributes this transformation primarily to rapid advancements in automation and artificial intelligence (AI), which are displacing conventional roles in sectors such as information technology, media, and finance. Mukherjea’s analysis points to a fundamental reconfiguration of India’s labor market, urging a move away from dependence on stable paychecks towards embracing entrepreneurship and innovation as the new engines of economic growth.
The decline of traditional salaried jobs is compounded by stagnating real wages despite overall employment growth, with data showing that salaried workers’ incomes have failed to keep pace with inflation in recent years. Experts also highlight a growing mismatch between higher education and job availability, leading to underemployment and diminishing returns on formal qualifications. These trends underscore the precariousness of the traditional employment model and its decreasing viability as a path to middle-class security. Meanwhile, the informal sector—comprising a large share of India’s workforce—continues to expand, supported by government initiatives that encourage micro-entrepreneurship and self-employment, reflecting a broader shift in employment structures.
In response to these challenges, Mukherjea advocates for a cultural and economic paradigm shift. He emphasizes leveraging India’s digital infrastructure—such as the JAM Trinity (Jan Dhan bank accounts, Aadhaar identification, and mobile connectivity)—to democratize access to entrepreneurial opportunities. This “entrepreneurial rebirth” aims to replace the traditional salaried job model with one that prioritizes risk-taking, innovation, and self-driven economic activity. Additionally, policymakers and industry stakeholders are encouraged to focus on sectors with high employment elasticity, including tourism, hospitality, healthcare, and financial services, to absorb displaced workers and support sustainable job creation.
While Mukherjea’s perspective has gained prominence, it has also prompted debate and alternative views. Critics stress that salaried employment is not vanishing but evolving, with a continued role for formal jobs alongside growing informal and entrepreneurial sectors. Some argue that the government’s push to formalize the workforce and boost manufacturing and services indicates a complex, multifaceted transition rather than a simple demise. Nonetheless, the discourse reflects a shared recognition of profound changes reshaping India’s employment landscape, highlighting the need for adaptation among workers, employers, and policymakers alike.
Background
White-collar employment, traditionally regarded as the backbone of India’s growing middle class, is experiencing a significant decline. This shift has been highlighted by Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers, who warns that stable, salaried jobs are no longer a sustainable model for India’s educated workforce. In his podcast titled *Beyond the Paycheck: India’s Entrepreneurial Rebirth*, Mukherjea outlines that the defining characteristic of this decade will be the “death of salaried employment” as a viable path for educated, determined, and hardworking individuals.
Mukherjea attributes this trend to widespread automation, artificial intelligence (AI), and the transformation of economic structures. He cites how AI-driven automation is reshaping industries that have traditionally absorbed large numbers of white-collar professionals, such as information technology, media, and finance. For example, he notes that Google already uses AI for one-third of its coding, signaling similar disruptions looming for Indian sectors. Additionally, the erosion of middle-management roles across industries further accelerates this decline in salaried employment opportunities.
Complementing Mukherjea’s observations, Niti Aayog member Arvind Virmani has noted that while overall employment in India is increasing, real wages for regular salaried jobs have failed to keep pace with inflation over the past seven years. This stagnation in real income further challenges the viability of traditional salaried roles as a source of economic security for the middle class. Together, these insights depict an economic phase marked by the gradual demise of conventional salaried employment, urging a reconsideration of career and income models for India’s workforce.
Analysis by Marcellus Investment CEO Saurabh Mukherjea
Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, has been a prominent voice warning about the decline of traditional white-collar salaried employment in India. He attributes this shift primarily to the rapid advancement and adoption of automation and artificial intelligence (AI) across key sectors such as information technology, media, and finance. Mukherjea highlights that many tasks previously carried out by white-collar workers are increasingly being performed by AI systems, citing Google’s revelation that one-third of its coding is already done by AI as a clear indicator of this trend, which he believes will soon be mirrored within Indian IT services companies.
Mukherjea describes the ongoing transformation as “effectively the death of salaried employment,” suggesting that the longstanding model of employees spending decades with a single organization is becoming obsolete. He notes that even mid-level supervisory roles—once seen as secure milestones in corporate careers—are being eroded by technological changes, further destabilizing the traditional employment structure. This evolution poses significant challenges for the Indian middle class, which has historically relied on stable salaried jobs as a primary source of economic security.
Beyond identifying the problem, Mukherjea advocates for a cultural and economic shift towards entrepreneurship. He argues that the prevailing societal fixation on stable paychecks and defined career paths needs to be replaced by an entrepreneurial mindset that embraces risk-taking and innovation. According to him, if individuals apply the same intellect and determination previously dedicated to corporate careers to entrepreneurial ventures, they can create new engines of prosperity. This shift, he suggests, is supported by India’s evolving digital infrastructure and expanding economic opportunities, marking a “rebirth” of entrepreneurship in the country.
Mukherjea’s analysis underscores the need for a broad attitudinal retooling among educated Indians—from job seekers to job creators—to navigate the changing employment landscape. He emphasizes solving for impact and happiness rather than merely monthly income, encouraging a redefinition of success that goes beyond monetary compensation. At the same time, he recognizes the importance of government and institutional support to facilitate smooth transitions for workers displaced by technological disruption, advocating for growth in service industries with high employment elasticity, such as tourism, hospitality, financial services, and healthcare.
Decline of Traditional Salaried Jobs
White-collar employment in India, long regarded as the backbone of the country’s growing middle class, is experiencing a significant decline. Saurabh Mukherjea, CEO of Marcellus Investment Managers, has warned that traditional salaried jobs are becoming increasingly unsustainable, particularly in sectors such as information technology, finance, and media. He describes this phenomenon as “effectively the death of salaried employment,” emphasizing that stable, long-term employment in these sectors is no longer a viable pathway for educated and hardworking individuals.
Mukherjea attributes this decline primarily to the rapid advancements in automation and artificial intelligence, which are reshaping the job market and displacing many conventional roles. He suggests that the age of the “salaryman” is coming to an end, with future economic opportunities likely to be driven by entrepreneurship, innovation, and risk-taking rather than traditional employment models. This shift signals a fundamental transformation in India’s labor market and calls for a rewrite of the conventional understanding of career growth and job stability.
Supporting this viewpoint, labor data indicate challenges in employment generation despite productivity improvements. Labour productivity in India increased by 12 percent between 2014-15 and 2023-24, yet it saw a decline from 2022-23, highlighting difficulties in sustaining productivity gains without the creation of quality jobs. Additionally, stagnation in real wages for salaried workers remains a concern due to a surplus of labor relative to demand. Many workers find themselves overqualified for available positions, reflecting declining returns on higher education in the current job environment.
While employment growth has been broadly distributed across rural and urban areas and various industries—including manufacturing, agriculture, construction, and services—wages, particularly in salaried jobs, have not kept pace with inflation over the past several years. According to Niti Aayog member Arvind Virmani, despite an increase in employment numbers, real wages for regular salaried jobs have effectively stagnated or declined when adjusted for inflation, further underscoring the precariousness of traditional salaried employment.
Emergence of New Employment Models
The traditional model of salaried white-collar employment in India is experiencing a marked decline, as emphasized by Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers. According to Mukherjea, stable, salaried jobs—once the cornerstone of India’s growing middle class—are no longer a sustainable avenue for the educated workforce, largely due to automation, artificial intelligence, and shifting economic structures. Sectors such as IT, media, and finance, which historically employed large numbers of white-collar workers, are now witnessing significant job reductions as AI and technological innovations take over routine functions.
However, rather than viewing these changes with pessimism, Mukherjea frames them as an opportunity for a new wave of self-employment and entrepreneurship. He credits the Indian government’s digital infrastructure initiative known as the JAM Trinity—comprising Jan Dhan bank accounts, Aadhaar identification, and mobile connectivity—with democratizing access to financial and identity services. This infrastructure forms the backbone for emerging entrepreneurial ventures, particularly benefiting low- and middle-income citizens. Mukherjea suggests that if the same intellect and determination once applied to corporate careers are redirected toward entrepreneurship, this new economic model could become the “engine of prosperity” for the nation.
This shift requires a fundamental change in mindset for educated Indians, moving away from a salary-dependent worldview toward embracing entrepreneurial risks and innovation. Mukherjea also critiques societal fixation on paychecks and stability, urging a redefinition of success to better align with the emerging economic realities. The growing informal sector, which accounts for nearly 90% of employment and includes a significant number of own-account workers and unpaid family workers, reflects this transformation in employment patterns. Government schemes such as the Pradhan Mantri MUDRA Yojana (PMMY) have further bolstered this trend by providing financial support to micro and small entrepreneurs.
Looking ahead, opportunity sectors aligned with the Fourth Industrial Revolution and digital services, including financial services, health, hospitality, e-commerce, renewable energy, MSMEs, and startups, have the potential to create over 100 million new jobs by 2030. These sectors exemplify the diversification of employment away from traditional salaried roles toward more dynamic and entrepreneurial job models. Thus, India’s vast digital infrastructure and evolving economic landscape are fostering a profound transformation in employment, highlighting the emergence of new models rooted in innovation and self-employment.
Implications for Workers and Employers
The decline of traditional salaried employment in India, as highlighted by Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers, has profound implications for both workers and employers. For millions of educated Indians who have long relied on stable, white-collar jobs in sectors such as information technology, media, and finance, the increasing automation and adoption of artificial intelligence (AI) signal a fundamental shift in the job market. Many roles once performed by salaried employees are now being replaced or significantly altered by technological advancements, undermining the sustainability of the classic employment model that built India’s middle class.
For workers, this transformation means that the traditional career trajectory—characterized by long-term tenure at a single organization with steady wage growth—is rapidly becoming obsolete. Mid-level career options are particularly vulnerable, as technological progress erodes the demand for routine and repetitive tasks. The returns on higher education are also diminishing due to labor oversupply and a mismatch between qualifications and job requirements, resulting in overqualification and wage stagnation among salaried employees. Consequently, many workers may find themselves facing job insecurity, underemployment, or the need to continuously upskill to remain relevant in a shifting labor market.
Employers, on the other hand, are witnessing a transformation in workforce composition and productivity dynamics. The large-scale integration of AI and automation is enabling companies to perform functions with fewer human resources, particularly in traditionally white-collar domains like coding, financial analysis, and media content production. For example, Google publicly acknowledges that a third of its coding is now performed by AI, a trend expected to extend widely across Indian IT services and other sectors. This shift demands that organizations rethink human resource strategies, focusing less on long-term salaried employment and more on flexibility, innovation, and entrepreneurship.
Moreover, this disruption calls for governments and industry stakeholders to facilitate smoother transitions for displaced workers by emphasizing sectors with high employment elasticity such as tourism, hospitality, financial services, and healthcare. Prioritizing growth in these service industries could help absorb the surplus labor released from automation-driven efficiencies in manufacturing and other automated sectors.
Mukherjea suggests that a cultural shift is crucial for both workers and employers, urging a move away from a paycheck-centered definition of success toward one focused on happiness, impact, and entrepreneurship. He posits that the new engine of economic prosperity will be driven by risk-takers and creators rather than traditional employees climbing the corporate ladder. This transformation requires significant attitudinal change, where educated Indians embrace entrepreneurship and innovation as viable and rewarding alternatives to salaried employment. India’s extensive digital infrastructure lays a strong foundation for this new economic model, potentially enabling a broader base of entrepreneurial activity that could redefine employment paradigms in the country.
Future Outlook
Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers, predicts a profound transformation in India’s employment landscape over the coming decade, marked by the “death of salaried employment” as a sustainable career model for educated and hardworking individuals. He highlights that automation and artificial intelligence are rapidly replacing white-collar roles in key sectors such as information technology, media, and financial services, leading to a decline in traditional salaried jobs that have long been the foundation of India’s middle class.
Despite the challenges posed by this shift, Mukherjea emphasizes the emergence of entrepreneurship and new economic opportunities as crucial drivers of future growth. He advocates for a cultural transformation that encourages Indians to move away from the job-seeker mindset towards embracing self-employment and innovation, leveraging India’s expanding digital infrastructure—including the JAM trinity of Jan Dhan bank accounts, Aadhaar identification, and mobile connectivity—to enable this transition.
The Indian government and other stakeholders are encouraged to facilitate this natural employment transition by prioritizing growth in service sectors with high employment elasticity such as tourism, hospitality, financial services, and healthcare, which are expected to absorb the labor displaced by automation in manufacturing and traditional industries. This strategic focus aligns with projections indicating continued decline in manufacturing jobs, while the service sector offers promising opportunities for employment generation and economic expansion by 2030.
Additionally, while government jobs continue to attract significant demand due to private sector job scarcity, a broad-based employment growth across both rural and urban areas and various industries underscores the complex dynamics shaping India’s labor market. The informal sector remains a vital part of the economy; however, ongoing formalization efforts through tax reforms and digitization aim to improve job quality and security for workers.
Criticism and Alternative Perspectives
While Saurabh Mukherjea of Marcellus Investment Managers highlights the decline of traditional salaried employment as a defining feature of India’s evolving economy, this viewpoint has prompted critical examination and alternative perspectives from various experts and sectors.
One significant concern is the stagnation of real wages for salaried workers, which some scholars attribute to an oversupply of labor relative to demand. Anamitra Roychowdhury, Assistant Professor at the Centre for Informal Sector and Labour Studies, points out that the returns to higher education are diminishing as many workers find themselves overqualified for their current jobs. This mismatch exacerbates underemployment and questions the sustainability of traditional salaried roles in the economy.
Moreover, the prominence of the informal sector remains a counterbalance to the narrative of salaried employment’s demise. Approximately 82% of India’s workforce is engaged in informal employment, with about 90% lacking formal job security or social benefits. Employment growth largely consists of own-account and unpaid family workers, partly
