E-commerce and financial services are expected to lead salary increments, with hikes exceeding 10%, driven by a strong demand for digital and tech talent.
The report highlights a growing shift towards AI-driven compensation strategies, with 60% of Indian employers planning to integrate AI into salary benchmarking and rewards management by 2028. Companies are increasingly leveraging AI to conduct real-time pay equity analysis and tailor compensation to individual preferences.
Among sectors, E-commerce is set to see the highest salary hikes at 10.5%, followed by financial services at 10.3% and Global Capability Centres (GCCs) at 10.2%. In contrast, IT and IT-enabled services are likely to witness slower pay growth, with increments of 9.6% and 9%, respectively.
Also read: Salary hikes in India will be the slowest in three years: Survey
The report also underscores the rising prominence of ESOPs as a long-term incentive, with 71% of companies offering them to align employee performance with wealth creation. Meanwhile, employee attrition eased to 17.5% in 2024, down from 18.3% in 2023, as companies focused on flexibility, hybrid work models, and personalised rewards to retain talent.
At the leadership level, CEO salaries in Nifty50 firms surged 18-20% last year, with a notable preference for internal promotions. Nearly 45% of CEO transitions over the past five years came from within the organisation.
Overall, the compensation landscape is shifting from fixed structures to dynamic, AI-enabled pay models, with flexibility and financial security emerging as key drivers of employee satisfaction.
(Edited by : Sheersh Kapoor)
