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Real Wage
A real wage is a nominal wage adjusted for changes in prices. If pay rises 8% while prices rise 6%, the real wage has grown about 2%. If prices rise faster than pay, real wages fall even though the salary went up.
Why It Matters
A raise only counts as a raise if it beats inflation.
In India
Low inflation in 2025 meant most pay rises translated into strong real wage growth. Higher inflation in 2026 eroded much of that.
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