6 out of 10 Indian employers to implement AI to improve the reward-terranga systems today

According to Ey India’s report, employers are increasing

Mumbai: Six out of 10 employers in India seek to explore the potential of artificial intelligence (AI) to improve employee reward systems in the next three years, according to a new report on Thursday. This occurs when companies face a rapid evolution market, promoted by technological advances and the changing expectations of employees.

According to Ey India’s report, the greatest change is the growing role of AI in the configuration of employee compensation. Employers are increasingly resorting to AI to rationalize processes such as salary brand, real -time salary capital analysis and the creation of customizable benefits for employees. The change is expected to pass the traditional payment models to Analytics promoted by AI by 2028, the report added.

Through the platforms with AI, companies can now offer more personalized benefits and guarantee salary capital in different employee groups. “While salary increases remain stable, organizations must go beyond traditional salary structures to attract and retain to the maximum talent in the near future,” said Abhishek Sen, partner and leader, total rewards, human resources and learning technology, people consulting, Ey India said.

In addition, the report says that Blockchain technology is emerging as a tool to help companies with safe, transparent and automated payroll systems, particularly for cross -border compensation. India’s workforce can expect an average salary increase of 9.4 percent in 2025.

At the same time, employee wear, or the rate at which employees abandon companies, have seen a slight improvement, decreasing 18.3 percent in 2023 to 17.5 percent in 2024. When it comes to the specific salary trends of the sector, the report stressed that industries such as electronic commerce, financial services and global cramps centers (GC) high.

Electronic commerce is expected to lead the way with a salary increase of 10.5 percent in 2025, driven by the increase in digital trade and increased consumer expense. The financial services sector is also expected to experience a 10.3 percent salary increase, while CCG is projected to see a 10.2 percent increase in salaries. In addition to competitive wages, employees now give great importance to flexibility.

The report shows that 90 percent of employees are working on hybrid configurations, combining work in the office and remote. Half of the employers surveyed also reported a growing interest in the concert and temporary roles. Companies that offer flexible work hours and remote work options are more likely to attract and retain talent, according to the report.