In this era of inflation, whether it is a government employee or a private employee, everyone is eagerly waiting for a salary hike. In such a situation, the question arises that how much percentage will the average salary of employees increase this year i.e. in 2025 and people working in which sector will get more benefits? Apart from this, has the number of employees leaving the job decreased or increased. Let us know about all these questions of yours in detail.

This much is the estimate of average salary increase in 2025

The latest report of EY Future of Pay has come out, in which all the questions highlighted above have been answered. The report revealed that this year i.e. in 2025, the salary of the employees is going to increase less than last year. An average salary increase of 9.4 percent has been estimated for the year 2025, whereas last year i.e. in 2024, there was an average salary increase of 9.6 percent.

Companies interested in using AI

The report revealed that employers have shown increased interest in using AI to improve employee reward and remuneration strategies. News agency PTI reported that about 60% of companies operating in India are exploring the potential of AI to enhance sectors such as salary benchmarking, real-time salary, equity analysts, and customizable employee benefits in the next three years.

Change expected in manual pay benchmarking and fixed incentive model.

The report further said that by the year 2028, a shift from traditional methods such as manual pay benchmarking and fixed incentive models to AI-based predictive analysis and real-time salary adjustment is anticipated. Apart from this, "AI-based compensation platforms enable companies to optimize personalized benefits, and reward structures and ensure equitable salaries across diverse workforce demographics."

Which sector will see the highest growth?

According to the report, e-commerce is expected to see a 10.5% salary hike, while the financial sector may see a 10.3% increase. At the same time, GCC may see a jump of 10.2%. At the same time, due to automation, cost optimization, and weakness in hiring, there may be slow salary growth in the IT and IT-enabled service sector. This year the IT sector is expected to see a 9.6% salary hike, while in 2024 there was an increase of 9.8%. At the same time, the IT-enabled service sector may see a 9% increase.