According to an EY analysis, the Indian e-commerce industry is predicted to have the most pay increases in 2025, with increases exceeding 10%.

According to the survey, the digital commerce industry will continue to provide competitive pay rises even if compensation growth across other sectors has somewhat slowed.

It said that “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” .

According to the research, total pay increases for 2025 are anticipated to be 9.4%, which is just less than the 9.6% increase that was seen in 2024. This suggested that salary growth had somewhat slowed.

E-commerce, on the other hand, continues to be an exception due to its quick digital growth, growing consumer spending, and technological breakthroughs.

Stable wage patterns are also being seen in other significant areas, including manufacturing, financial services, pharmaceuticals, and automobiles. These industries keep making investments in their personnel, which strengthens India’s dominant position in the world market.

Companies are dedicated to keeping people and providing competitive remuneration, even in the face of a little slowdown in wage growth.

The lack of qualified workers is one of the main issues that organizations are now experiencing. According to the survey, 80% of firms are having trouble finding skilled workers, even if attrition rates have somewhat decreased from 18.3% in 2023 to 17.5% in 2024. This issue is especially serious in sectors with strong demand, like energy and IT.

Businesses are concentrating on reskilling and upskilling their employees in order to solve this problem. In order to close the skills gap and guarantee long-term employment, training programs are becoming more important.

Companies are also using a variety of tactics to draw in and keep workers.
An increasingly significant component of employee engagement is a robust Rewards Value Proposition (RVP).

According to the survey, companies are increasingly giving well-being initiatives, such as those pertaining to mental and physical health, top priority. In order to satisfy the evolving demands of the workforce, they are also increasing flexible and inclusive benefits. Enhancing the work environment and raising employee happiness are the goals of these initiatives.

Businesses have hope for the future despite obstacles. In the next years, economic development and stability are anticipated to be propelled by strategic workforce investments and supporting governmental initiatives.