India Inc poised to see common wage hike of 9.4% in 2025, tad decrease than 9.6% final 12 months: Report, ETCFO
New Delhi, India Inc is ready to witness a median wage improve of 9.4 per cent in 2025, a slight moderation from the 9.6 per cent recorded in 2024, in line with EY Way forward for Pay report. The report confirmed that as many as 6 in 10 Indian employers are eager to discover the potential of AI for worker rewards and compensation methods over the following three years.
“The report reveals that India Inc. is ready to witness a median wage improve of 9.4 per cent in 2025, a slight moderation from the 9.6 per cent recorded in 2024. General worker attrition charge dropped from 18.3 per cent in 2023 to 17.5 per cent in 2024,” it stated.
Almost 60 per cent employers wish to leverage AI throughout crucial areas akin to wage benchmarking, real-time pay fairness evaluation, and customisable advantages for workers.
The report famous that corporations are poised to transition from guide pay benchmarking and stuck incentive fashions to AI-driven predictive analytics and real-time wage changes by 2028.
“With AI-powered compensation platforms, firms can now personalise advantages, optimise reward buildings, and guarantee pay fairness throughout various workforce demographics,” the report stated.
Additionally blockchain and sensible contracts are rising as key enablers of safe, clear, and automatic payroll processing, significantly for cross-border compensation.
As per the report findings, the e-commerce sector is anticipated to see the very best wage increment of 10.5 per cent in 2025, pushed by the speedy growth of digital commerce, rising shopper spending, and technological developments.
The monetary companies sector follows intently, with projected wage increment of 10.3 per cent in 2025, pushed by demand for fintech specialists, digital banking specialists, and cybersecurity professionals.
The report additionally highlights wage increments in International Functionality Centres (GCC), projected at 10.2 per cent in 2025, up from 10 per cent in 2024, as firms proceed investing in digital transformation and automation.
Nonetheless, IT and IT-enabled companies sectors are experiencing a slowdown in wage development, impacted by automation, value optimisation, and hiring slowdowns, it confirmed.
IT sector wage increments are anticipated to say no from 9.8 per cent in 2024 to 9.6 per cent in 2025, whereas IT-enabled companies will see a moderation from 9.2 per cent in 2024 to 9 per cent in 2025, underscoring a strategic shift in direction of effectivity and leaner workforce buildings.
In the meantime, automotive, prescription drugs, and manufacturing sectors proceed to show regular compensation developments, it stated.
In response to the report, CEO pay in Nifty50 firms surged by 18-20 per cent from 2023 to 2024, reflecting a big improve in government compensation.
Notably, promoter CEOs earn 30-40 per cent greater than skilled CEOs, with an rising desire for inside promotions, as 40-45 per cent of CEO transitions up to now 5 years have been inside.
“The report highlights that 70 per cent of CEO compensation is performance-linked, with incentives tied to enterprise development, ESG (Environmental, Social, and Governance) targets, and long-term sustainability,” it stated.>
