How to Survive in case of Job Loss in India?

How to Survive in case of Job Loss in IndiaHow to Survive in case of Job Loss in India?

Companies are adopting hire and fire strategy. Many companies are laying off their employees citing projects slowdown from USA. Labour Ministry in some of the states is in talks with companies in India to reduce the affect. We can imagine how serious the current situation and could imagine the impact in future. For next few years this uncertainty may continue. How to Survive in case of Job Loss in India? What strategies would help you in having complete control on your financial status? In this article, I would help you with some tips on how you can survive in case of job loss.

Also Read: How to invest your bonus or annual variable pay in India?

Why this sudden layoffs / Job Loss in India?

Trump strategies are raising alarms for countries which are dependent on US for H1B visas and offshore projects. India is one among the most affected country as our IT exports to USA are more than 40%. TCS, the largest IT company in India has indicated it would fire thousands of engineers this year, however it took back decision saying no lay-offs considering criticisms from employee unions. In current scenario of slowdown of projects, many reputed companies from all sectors including IT, pharmacy, manufacturing and banking sector are cutting down the number of employees or reducing their pay scale. If you are not prepared for this reducing salaries or job loss you may end up in ruining your financial life.

How to Survive in case of Job Loss in India?

I would indicate few major points which you need to keep in mind now. These tips would be useful even if you think your job is 100% secured to plan well ahead of unexpected crisis.

Tip # 1 – Prepare monthly budget

Do you know what are your monthly expenses? As most of the payments being made by debit and credit cards, at times, we are not aware of the expenditures made on various heads like shopping for clothes, petrol filling, entertainment etc. First of all, we need to track the expenditures and make budget for different heads so that irrelevant expenditures can be cut down for some time and you can get a sense of how long your savings would keep you afloat. You can separate them by indicating “general” expenses and “Avoidable” expenses. Everything which you need irrespective of your income is general expenses which includes, Groceries, house rent, EMI for loans, children fees, petrol charges etc., Any expenses which you can avoid or postpone to few more months would be avoidable expenses. It could be vacation, birthday celebrations, buying a car, taking huge loan for buying home etc., If you have planned well you would have made “emergency fund” by now. You should utilize emergency fund only for general expenses. You should work on various aspects on how you can plan your budget and stay within the budget.

Tip # 2 – Use cash

For a moment, let us forget about digital payments. In case of dwindling jobs, use cash for expenditure as much as possible. We may become careless when we paying with debit or credit card but while paying out physical currency, we are quite vigilant and stingy.

Tip # 3 – Say No luxuries

Stop spending immediately on luxurious items if you feel your job is in danger or you have become jobless till you have steady income again. Money saved today can be used later in times of severe crisis. Cut short all the expenditures that are not compulsory like spending on vacations or buying any luxurious electronic items.

Tip # 4 – Refrain withdrawing from pension accounts / PF account

In times of cash crunch, you may be tempted to withdraw some money from various saving account. But, you should give a second thought to it and refrain yourself as much as possible. Only in case of emergency, you should withdraw your EPF amount.

Tip # 5 – Government benefits

You can avail the government benefits, if any, like Unemployment Allowance. If you are receiving any benefits on the basis of your income, you may also get government assistance for paying your mortgage interest.

Tip # 6 – Don’t make hurry in paying off debts

At the time of job loss, do not make hurry in paying off your loans and close the accounts. Pay only the minimum amounts for your debts. Stop the outflow of money as much as possible.

Tip # 7 – Lower interest loans

If you are not able to manage your EMIs, contact your lender and clarify your financial problem. The lender may restructure your entire loan to lower the EMI. A request for reducing the interest rates can also be made. If you are not seeking any help from the lender, you may also exercise the option of switching the loan to another lender who is providing better deal to you.

Tip # 8 – Search for other sources of income

In absence of a permanent job, you may even switch to some temporary job to find an alternate source of income like if you possess good writing skills, you can go for freelancing articles and blogs etc. You can even obtain a loan against valuable assets like gold loan etc. But, use this tool as the last respite.

Conclusion:  In case of job loss, first thing you should be doing is making yourself strong. Consider the above tips and take control on your financial status. Look for new job and get back to your normal status in few months.

If you enjoyed this article, share it with your friends and colleagues through Face book and Twitter.


How to Survive in case of Job Loss in India?


  1. Hell Suresh,

    Very good ariticle and thanks for sharing such thoughts in crisis.. Very useful for all…

    I am regular reader of your blog.




  2. Amazing Tips Mr.Suresh. Though i am not in an job threat, these tips really helping me in securing my financial life. Thanks.

Leave a Reply

Your email address will not be published. Required fields are marked *