
The central government workforce in India, excluding CPSEs, is set to reach its highest point in 2024, with an estimated 3.51 million employees. This marks a considerable 12% increase compared to the previous year.
Projected Reduction in 2025: However, by March 2025, there’s a forecasted decline in the workforce by approximately 50,000 employees, representing a 1.4% decrease from the peak in 2024.
Expenditure Analysis
- Increasing Costs: Surprisingly, despite the anticipated reduction in employees, the expenditure on pay and allowances is expected to rise. It’s projected to increase by 6.9% to Rs 3.2 trillion in the financial year 2024-25.
Factors Influencing Workforce Changes
- Natural Attrition: Many employees might be reaching retirement age, leading to a natural decrease in the workforce.
- Government Initiatives: Recent efforts by the government to streamline and optimize public services might be contributing to the reduction in certain departments.
Impact on Payroll Costs
- Rising Per-Employee Costs: The increase in overall expenditure despite a reduction in the workforce suggests that payroll costs per employee are rising. This could be due to factors such as promotions, salary revisions, or increased benefits.