In a pre-budget meeting with Finance Minister Nirmala Sitharaman, trade unions strongly advocated for a substantial increase in the minimum EPFO pension and the establishment of the 8th Pay Commission. They emphasized the urgent need for measures to improve social security and ensure equitable economic policies ahead of the 2025-26 Union Budget, which is set to be presented on February 1.
Key Demands:
- Increase in Minimum EPFO Pension:
Unions proposed raising the minimum pension under the Employees’ Provident Fund Organisation (EPFO) from ₹1,000 to ₹5,000 per month. They also recommended linking the pension to Variable Dearness Allowance (VDA) to safeguard retirees against inflation. - Constitution of the 8th Pay Commission:
Trade union leaders called for the immediate establishment of the 8th Pay Commission to revise the salary structure of government employees. With the 7th Pay Commission having been constituted over a decade ago in 2014, they argued this reform is overdue. - Broader Social Security Measures:
The unions demanded increased social protections, including:- Raising the income tax exemption limit to ₹10 lakh annually.
- Introducing a dedicated social security scheme for gig workers.
- Restoring the Old Pension Scheme (OPS) for government employees.
- Support for Informal and Agricultural Workers:
Proposals included fixing minimum wages for agricultural workers and extending social security benefits to informal sector employees. - Taxes on the Super-Rich:
To fund these initiatives, the unions suggested imposing an additional 2% tax on the ultra-wealthy, emphasizing the need for equitable wealth distribution.
Workforce and Economic Concerns:
Union representatives also expressed concerns over the decline in the workforce within Central Public Sector Enterprises (CPSEs), which has reduced from 21 lakh in the 1980s to just over 8 lakh today. They urged the government to halt the privatisation and corporatisation of PSUs to preserve jobs and economic stability.
The trade unions hope these reforms will address long-standing concerns about workers’ welfare and economic disparities. All eyes are now on the upcoming budget to see how the government responds to these demands.