Finance Minister Nirmala Sitharaman is set to unveil the budget for the fiscal year 2025-26 on February 1. In preparation, she has been meeting with representatives from various sectors, including a recent discussion with labor unions on Monday. During this meeting, trade unions expressed their demands for the budget, including a fivefold increase in the minimum pension under the Employees’ Provident Fund Organisation (EPFO), the immediate establishment of the 8th Pay Commission, and higher taxes on the wealthiest individuals.
In their traditional pre-budget dialogue with Sitharaman, union leaders also called for an increase in the income tax exemption limit to Rs 10 lakh per year, the introduction of a social security scheme for temporary workers, and the reinstatement of the Old Pension Scheme (OPS) for government employees. S P Tiwari, the national general secretary of the Trade Union Coordination Centre (TUCC), stated that the government should halt the privatization of public sector undertakings (PSUs) and consider imposing an additional two percent tax on the super-rich to fund social security for workers in the unorganised sector.
He further emphasized the need for social security for agricultural workers and the establishment of a minimum wage for them.
Regarding EPFO pensions, Pawan Kumar, organizing secretary of the Bharatiya Mazdoor Sangh (northern region), advocated for an increase in the minimum pension under the Employees’ Pension Scheme, 1995 (EPS-95) from Rs 1,000 to Rs 5,000 per month, along with the addition of a variable dearness allowance (VDA). He reiterated the call to raise the income tax exemption limit to Rs 10 lakh and suggested that pension income should be tax-exempt. Kumar also urged the swift formation of the Eighth Pay Commission to reassess the pay structure for government employees.
Swadesh Deb Roy, the national secretary of the Centre of Trade Unions of India (CITU), voiced his support for the demand, highlighting that it has been over a decade since the Seventh Pay Commission was established in February 2014. He raised concerns about the significant drop in the number of permanent employees within public sector central undertakings. In the 1980s, these enterprises employed 2.1 million permanent staff, but by 2023-24, that figure has dwindled to just over 800,000.
Budget Allocation Request
Deepak Jaiswal, the National President of the National Front of Indian Trade Unions (NFITU), called for a distinct budget allocation for the Employees Provident Fund (EPF) and the Employees’ State Insurance Corporation (ESIC) to ensure social security benefits for workers in the unorganised sector.
