E-commerce sector in India to see highest salary hike in 2025: EY Report

The e-commerce sector in India is expected to witness the highest salary increments in 2025, with hikes surpassing 10 per cent, according to a report by EY.

The report highlighted that despite a slight moderation in salary growth across industries, the digital commerce sector will continue to offer competitive pay increases.

It said “the e-commerce sector is expected to witness the highest salary increments, surpassing 10 per cent, driven by the rapid expansion of digital commerce, increased consumer spending and technological advancements”.

The report stated that overall salary increments for 2025 are projected at 9.4 per cent, slightly lower than the 9.6 per cent recorded in 2024. This indicated a minor slowdown in pay growth.

However, e-commerce remains an exception, driven by rapid digital expansion, rising consumer spending, and advancements in technology.

Other major industries such as automotive, pharmaceuticals, manufacturing, and financial services are also showing steady salary trends. These sectors continue to invest in their workforce, reinforcing India’s strong position in the global market.

Despite the slight dip in salary growth, companies are committed to retaining talent and ensuring competitive compensation.

One of the key challenges facing businesses today is the shortage of skilled professionals. The report reveals that while attrition rates have slightly declined from 18.3 per cent in 2023 to 17.5 per cent in 2024, 80 per cent of organizations are struggling to find qualified employees. This problem is particularly severe in high-demand industries such as IT and energy.

To address this issue, companies are focusing on upskilling and reskilling their workforce. Training programs are becoming essential to bridge the skills gap and ensure long-term employability. Businesses are also implementing various strategies to attract and retain employees.

A strong Rewards Value Proposition (RVP) is emerging as an important factor in employee engagement.

The report added that organizations are now prioritizing well-being programs, including physical and mental health initiatives. They are also expanding flexible and inclusive benefits to meet the changing expectations of the workforce. These efforts aim to create a better work environment and increase employee satisfaction.

Despite challenges, businesses remain optimistic about the future. Strategic workforce investments and supportive policy measures are expected to drive economic growth and stability in the coming years.