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Decline in salary growth! Average salary growth is expected to fall to 9.4% in 2025

Decline in salary growth! Average salary growth is expected to fall to 9.4% in 2025

With the end of March, the phase of salary increment is about to begin in companies. According to a report, the highest salary increase can be seen in the e-commerce sector in 2025. The EY report claims that there can be an increment of more than 10 percent in the salary in the e-commerce sector . The main reason for this is said to be the rapid expansion of digital commerce, increase in consumer spending and increasing scope of technology. According to the report, due to the increasing demand for employees in the e-commerce sector, companies will increase the salary the most. However, the average salary increase is estimated to be 9.4 percent in 2025 , which was 9.6 percent in 2024. It is clear from this that there may be a slight decline in salary growth.

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You will get good salary growth in these sectors too

The report also states that apart from e-commerce, sectors like automobile, pharma, manufacturing and financial services will also see good salary increases. Companies in these sectors are continuously investing in their employees, so that India maintains a strong position in the global market. However, despite a slight decline in salary growth, companies are ready to give competitive increments to retain talent . According to the report, companies are now also emphasizing on the well-being of employees. Along with salary increases, wellness programs for physical and mental health are being given priority. Apart from this, companies are also promoting flexible and inclusive benefits to meet the changing expectations of employees.

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Decline in salary growth! Average salary growth is expected to fall to 9.4% in 2025

There is a huge shortage of skilled professionals in front of companies

The report reveals that the lack of skilled employees is emerging as a major challenge for companies. Although the attrition rate was 18.3 percent in 2023, which has come down to 17.5 percent in 2024 , still 80 percent of companies are facing difficulty in finding skilled employees. This problem is especially seen more in the IT and energy sectors . To solve this, companies are now focusing on upskilling and reskilling their employees. Companies are improving the skills of employees through various training programs to ensure their long term employment.

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New efforts to retain employees

Companies are working on new strategies to attract and retain employees . The report states that companies are now focusing not only on salary increment but also on creating a better work environment. Under this, steps like hybrid working model, mental health support, work-life balance are being taken. This will increase employee satisfaction and help companies retain skilled talent.

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