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

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.