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1、Future of PayEvolving pay strategy in a digital-first worldFebruary 2025Future of pay2Table ofContentsForewordEconomic outlookTalent trends across sectorsWorkforce attrition and retention insightsSalary increments and incentivesExecutive compensation and long-term incentive(LTI)trendsFuture of emplo

2、yee rewardsThe path to total wellness010203040506070801ForewordForewordFuture of pay4As we navigate the evolving economic and geopolitical landscape of 2024-25,India stands resilient,bolstered by strong domestic demand,a flourishing digital economy and robust economic fundamentals.Despite global unc

3、ertainties,organizations in India are demonstrating adaptability and strategic foresight to shape the future of work and compensation.The Union Budget 2025 plays a pivotal role in influencing compensation,benefits and employee well-being,fostering both financial security and workforce productivity.A

4、 key highlight of this years budget is the increase in the income tax exemption threshold from INR 6 lakh to INR 12 lakh per annum,effectively boosting disposable income for junior to mid-level employees.The formalization of gig workers under government-backed welfare programs,including expanded hea

5、lthcare access,strengthens job security and provides stability to this growing segment of the workforce.In line with Indias digital and skill-driven economy,the budget significantly invests in upskilling and talent development.With dedicated funding for skill enhancement across sectors such as IT,ma

6、nufacturing and energy,businesses now have the opportunity to bridge talent gaps and drive workforce agility without heavy internal reskilling costs.Further,enhanced funding for women-centric and diversity programs encourages companies to strengthen DE&I initiatives as part of their Total Rewards fr