Indian corporations are anticipated to offer an average salary increment of 9.4% in 2025, a slight decrease from the 9.6% observed in 2024, as detailed in EY's Future of Pay report. The e-commerce industry is poised to lead this growth with a projected 10.5% salary increase, fueled by the rapid expansion of digital commerce, increased consumer spending, and ongoing technological innovations.

The financial services sector is also expected to experience robust salary growth, with a forecasted 10.3% increment. This surge is attributed to the rising demand for professionals specializing in fintech, digital banking, and cybersecurity. Global Capability Centres (GCCs) are projected to see salary hikes of 10.2% in 2025, up from 10.0% in 2024, as organizations continue to invest in digital transformation and automation initiatives.

Conversely, the IT and IT-enabled services sectors may witness a deceleration in salary growth. The IT sector's salary increments are expected to decrease from 9.8% in 2024 to 9.6% in 2025, while IT-enabled services might see a reduction from 9.2% to 9.0%. This trend reflects a strategic shift towards efficiency, automation, and leaner workforce structures within these industries. Meanwhile, sectors such as automotive, pharmaceuticals, and manufacturing are projected to maintain steady compensation trends.

The report also highlights a growing interest among employers in leveraging artificial intelligence (AI) to enhance employee rewards and compensation strategies. Approximately 60% of Indian employers are exploring AI applications for salary benchmarking, real-time pay equity analysis, and customizable employee benefits over the next three years. This shift towards AI-driven compensation models aims to personalize benefits, optimize reward structures, and ensure pay equity across diverse workforce demographics.