Appraisal Time: Employees In This Sector May Get Maximum Hikes - Report

The Indian e-commerce sector is likely to witness the highest salary increments in 2025, with hikes that surpass 10%, a report by EY said on Monday.

Despite a slight moderation in salary growth across industries the digital commerce sector will continue to offer competitive pay increases, the report noted.

Why E-Commerce?

"The e-commerce sector is expected to witness the highest salary increments, surpassing 10 per cent, driven by the rapid expansion of digital commerce, increased consumer spending and technological advancements," it said.

E-commerce remains an exception as it is driven by rapid digital expansion, rising consumer spending as well as advancements in technology.

What Does The Report Say?

According to the report, the overall salary increments for the year 2025 are projected at 9.4%, which is slightly lower than the 9.6% recorded in 2024. This shows that there has been a minor slowdown in pay growth.

What About Other Sectors?

Other industries such as automotive, pharmaceuticals, manufacturing, and financial services are also exhibiting salary trends.

Companies are still committed to retaining talent and ensuring competitive compensation despite the dip in salary growth.

Why Is There A Dip In Pay Growth?

Businesses today, are facing key challenges such as the shortage of skilled professionals. According to the report, while attrition rates have slightly declined from 18.3% in 2023 to 17.5% in 2024, 80% of organizations are struggling to find qualified employees. This problem is severe in high-demand industries like IT and energy.

What Are Companies Doing To Address This Issue?

To address this issue, companies are focusing on upskilling and reskilling their workforce. Additionally, training programs are also becoming increasingly important to bridge the gap and ensure long-term employability. 

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