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Central Government Employees to decrease by 50,000 by year 2025


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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.

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