E-Commerce Sector To Lead Salary Growth In India For 2025: EY Report

New Delhi, April 1 (KNN) India's e-commerce industry is projected to offer the highest salary increments in 2025, with increases exceeding 10 percent, according to a recently published report by EY. 

Despite an overall moderation in salary growth across industries, the digital commerce sector continues to stand out with competitive compensation packages.

The report indicates that the exceptional growth in e-commerce salaries is primarily driven by the rapid expansion of digital commerce platforms, increased consumer spending patterns, and ongoing technological advancements within the sector. 

This performance highlights the industry's robust growth trajectory and strategic importance in India's evolving economy.

Overall salary increments across industries for 2025 are forecast at 9.4 percent, representing a slight decrease from the 9.6 percent recorded in 2024. 

This marginal decline signals a minor slowdown in compensation growth trends nationwide. 

However, several major sectors beyond e-commerce continue to demonstrate steady salary trends, including automotive, pharmaceuticals, manufacturing, and financial services.

These key industries maintain their commitment to workforce investment, thereby reinforcing India's strong position in global markets. 

Despite the slight reduction in overall salary growth rates, organisations remain dedicated to talent retention through competitive compensation strategies.

A significant challenge facing businesses across sectors is the growing shortage of skilled professionals. 

While attrition rates have marginally decreased from 18.3 percent in 2023 to 17.5 percent in 2024, the report reveals that 80 percent of organisations are experiencing difficulties in recruiting qualified employees. 

This skills gap is particularly pronounced in high-demand industries such as information technology and energy.

To address these talent acquisition challenges, companies are increasingly focusing on upskilling and reskilling their existing workforce. 

Training programs have become essential components of corporate strategy to bridge skills gaps and ensure long-term employability. 

Organisations are implementing various approaches to enhance their ability to attract and retain valuable talent.

A robust Rewards Value Proposition (RVP) is emerging as a critical factor in driving employee engagement. 

According to the report, organisations are now prioritising comprehensive well-being programs that include both physical and mental health initiatives. 

Additionally, companies are expanding flexible and inclusive benefits packages to better align with the evolving expectations of today's workforce.

These strategic efforts aim to create enhanced work environments and increase overall employee satisfaction. 

Despite the challenges present in the current business landscape, organisations maintain an optimistic outlook for the future, with strategic workforce investments and supportive policy measures expected to drive economic growth and stability in the coming years.

(KNN Bureau)