Salary Hikes in 2025: According to the report, the e-commerce sector is expected to witness the highest salary hike of 10.5% in 2025. The reason for this is the growth of online business, increasing consumer spending and expansion of technology.
Every employee expects a salary hike, but how much more money will come in your pocket this year? Which sector’s growth will be slow? Which will have the highest salary hike? And will AI control your salary as well? All these questions have been answered in a new report.
Let us know what will be the average salary hike in India in 2025, which sectors will have the highest increment and which sectors may lag behind.
An average salary hike of 9.4% is expected in India in 2025
An important report has come out for employees waiting for a salary hike. An average salary hike of 9.4% is expected in India in 2025, which is slightly less than the 9.6% salary hike of 2024. This has been revealed in EY’s ‘Future of Pay’ report.
The report also states that in the coming years, companies will use Artificial Intelligence (AI) to determine salaries and benefits given to employees.
In which sector will you get the highest salary hike?
According to the report, the e-commerce sector is likely to have the highest salary hike of 10.5% in 2025. The reason for this is the growth of online business, increasing consumer spending and expansion of technology.
- There may be a 10.3% salary hike in the Financial Services sector.
- A 10.2% increase is expected in the Global Capability Center (GCC).
- The salary increase in the IT sector is likely to decline to 9.6% (was 9.8% in 2024).
- The salary hike in the IT-enabled services (ITeS) sector may come down to 9%, which was 9.2% in 2024.
- Not much change has been seen in salaries in the Automobile, Pharma and Manufacturing sectors.
Job attrition rate decreased, stood at 17.5% in 2024
In 2023, 18.3% of employees in India were leaving their jobs, but this rate decreased to 17.5% in 2024. This means that people are now moving towards more stable jobs.
AI will change the system of salary hike and payroll!
According to the report, 60% of Indian employers are now planning to use AI in salary calculation and employee benefits.
With AI, companies will be able to analyze salary calculation and pay parity in real time. They will be able to design customized benefits for employees. At the same time, AI based salary and incentive models are expected to be fully adopted by 2028.
Payroll system will change with blockchain and smart contracts
The report also states that with the help of blockchain and smart contracts, companies can make the payroll system more secure and transparent. This will reduce errors and fraud in salary related matters.
1820% increase in CEO salary
The salary of CEOs of companies included in India’s top 50 NIFTY index has seen an increase of 1820% between 2023 and 2024. This reflects the rapid increase in the salaries of senior officials.
