Salary Hike Update: In this era of inflation, whether government employees or private, everyone is eagerly waiting for a salary hike. In such a situation, the question arises by how much percentage will the average salary of employees increase this year i.e. in 2025 and which sector will benefit more? 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.
Estimation of average salary increase in 2025
The latest report of EY Future of Pay has come out, which answers all the questions highlighted above. The report reveals 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, while last year i.e. in 2024, there was an average salary increase of 9.6 percent.
Companies’ interest in using AI
The report reveals that employers have shown an increased interest in using AI to improve employee rewards and remuneration strategies. About 60% of companies operating in India are exploring the potential of AI to enhance areas such as salary benchmarking, real-time salaries, equity analysts, and customizable employee benefits over the next three years, news agency PTI reported.
Manual pay benchmarking and fixed incentive models are expected to change
The report further states that by the year 2028, a shift from traditional methods such as manual pay benchmarking and fixed incentive models to AI-based predictive analytics and real-time salary adjustments is expected. Moreover, “AI-based compensation platforms enable companies to personalize benefits, customize rewards structures, and ensure equitable pay 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 can see a 10.3% increase. At the same time, GCC can see a jump of 10.2%. At the same time, due to automation, cost optimization, and weakness in recruitment, salaries in the IT and IT-enabled services sector may see slow growth. The IT sector is expected to see a 9.6% salary hike this year, while there was a 9.8% increase in 2024. At the same time, the IT-enabled services sector can see a growth of 9%.