The e-commerce sector in India is set to witness the highest salary increments in 2025, surpassing 10%, according to a report by EY. Despite a marginal slowdown in overall salary growth across industries, digital commerce continues to thrive, offering competitive pay increases driven by rapid expansion, rising consumer spending, and technological advancements.

Key Findings from the Report Salary Growth Trends: Overall salary increments for 2025 are projected at 9.4%, slightly lower than 9.6% in 2024, indicating a modest deceleration. However, e-commerce remains an outlier, with pay hikes exceeding 10%, reflecting the sector's dynamic growth.

Sectoral Comparisons: Industries such as automotive, pharmaceuticals, manufacturing, and financial services are showing stable salary trends, underscoring India’s resilience in the global market.

Talent Challenges: While attrition rates have declined from 18.3% in 2023 to 17.5% in 2024, 80% of organizations still face challenges in finding skilled professionals, especially in high-demand sectors like IT and energy.

Addressing Workforce Challenges With talent shortages posing a critical challenge, companies are ramping up upskilling and reskilling initiatives to bridge the skills gap and enhance long-term employability. Businesses are also strengthening their Rewards Value Proposition (RVP) by prioritising:

Well-being programs, including physical and mental health initiatives Flexible and inclusive benefits, catering to evolving workforce expectations Employee engagement strategies, ensuring talent retention and job satisfaction

Optimism Amidst Challenges Despite the slight dip in salary growth, businesses remain optimistic about the future. Strategic workforce investments and supportive policy measures are expected to sustain economic growth, ensuring India's continued leadership in the global market.

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