Why 57% of India’s Gen Z Are Choosing Learning Over Pay Hikes in 2026

Often branded the “side-hustle generation,” India’s Gen Z has grown up in an era marked by economic volatility, rising education costs, and shrinking job security. While they are frequently assumed to be driven primarily by money, new data suggests a far more nuanced reality. For a majority of young professionals, long-term career growth now matters more than short-term financial gains.

According to The Gen Z Work Code: What Drives, Engages, and Retains Them, a new report by recruitment platform Naukri, 57% of Gen Z professionals in corporate India define career growth as the opportunity to learn new skills on the job—outweighing salary hikes and promotions. The survey is based on responses from over 23,000 Gen Z professionals across more than 80 industries.

Learning beats promotions and pay hikes

The data reveals a clear shift in how young workers evaluate success. While 57% associate growth with skill acquisition, only 21% see salary hikes as their top priority. Promotions come even lower in the list of career progress markers, only 12% seeing them as the main signal.

This love of learning is particularly evident in creative industries such as design and advertising, where almost 78% of the participants relate growth to upskilling. These disciplines typically require one to be proficient with the latest tools, platforms, and formatsthus, learning continuously is no longer a matter of choice but a necessity.

It is only natural that one changes their expectations as they gain more experience. For example, in more experienced Gen Z workers, the share of those who place salary rises at the top of their priorities goes up to 25%. This indicates that even though money still counts, it is not so great as to be able to overshadow the importance of acquiring new skills at any stage of one's career.

Work-life balance matters almost as much as learning

Beyond professional development, Gen Z is also redefining what a “good job” looks like. The report shows that work, life balance is the next most crucial factor in job decisions for 50% (after salary). Among the group with a work experience of 5, 8 years, this number rises to 60%.

Having a flexible schedule, reasonable workload, and personal time that is not to be compromised are nowadays no longer considered as just added benefits but are a must for being able to work happily and healthily for a long time. For many young professionals, burnout is definitely not a trophy but a sign of trouble.

Recognition means opportunity, not applause

Another striking finding from the report is how Gen Z interprets workplace recognition. A massive 81% prefer recognition in the form of growth opportunities—such as learning programmes, mentorship, or clear career pathways—rather than verbal praise or public appreciation.

Only 9% said praise alone feels meaningful. Among those earning between Rs 15–25 lakh per annum, interest in monetary rewards increases to 28%, compared to just 8% at entry-level salaries. This indicates that preferences do shift with income levels, but the core desire for tangible progress remains consistent.

Stress is structural, not personal

The survey also sheds light on Gen Z’s mental health concerns at work. The foremost stress factor for work, life balance imbalance was mentioned by 34% of those surveyed, and closely behind was the lack of growth opportunities which was pointed out by 31% of respondents.

Compared to Millennials, it seems that Gen Z is less bothered by micromanagement as only 16% of them indicated it as a significant source of stress against 25% of the older groups. Toxic coworkers were a cause of concern for 19% of the Gen Z respondents but a lot less than systemic issues such as workload stress and stagnation.

India's Gen Z associates career security more and more with how much they can learn today in order to be employable tomorrow. As AI, automation, and global competition continue to reshape the job market, skills rather than titles are becoming the new currency.

The report indicates that companies that want to attract and keep young talents should revise their strategies. Formal learning, flexible working arrangements, and clear advancement opportunities may count more than just slight salary increases.

As the data makes clear, Gen Z is not rejecting money—they are rejecting stagnation. And for organisations willing to invest in their learning journeys, the returns could be far greater than a simple salary negotiation.