In a notable shift from a five-year downsizing trend, the Centre has expanded its workforce to 3.56 million in FY24. This increase reverses the previous decline, which saw the number of Union government employees fall to 3.17 million in FY23, the lowest level in nearly a decade.
The peak of 3.33 million employees was recorded in FY14, according to a Moneycontrol analysis of Budget documents.
Despite this expansion, the average pay per employee is expected to decrease in FY24, due to the induction of more young workers, though it is projected to rise again in FY25. The average expenditure per employee, excluding travel expenses, is anticipated to be Rs 8.12 lakh in FY24, a 4.4 per cent drop from Rs 8.49 lakh in the previous year.
The average employee salary reportedly increased at an annual pace of 6.5 per cent in the FY16 to FY23 period, even as the total number of employees declined.
Looking ahead, the number of Central government employees is projected to fall to 3.51 million by FY25, while the average annual salary is expected to rise to Rs 9 lakh. This trend indicates that higher-level positions may be filled more quickly than lower-level ones, reflecting ongoing shifts in the government’s staffing and compensation strategies.
