As the countdown to the Union Budget 2025-26 begins, trade unions in India are making their voices heard, presenting a series of demands to Finance Minister Nirmala Sitharaman. In a pre-budget consultation held recently, union leaders urged the government to consider significant reforms aimed at improving the financial security and welfare of workers across various sectors.
Key Demands from Trade Unions
Increase in EPFO Pension
One of the primary demands from trade unions is to raise the minimum pension under the Employees’ Provident Fund Organisation (EPFO) from the current ₹1,000 per month to ₹5,000. This five-fold increase is seen as essential for ensuring a basic standard of living for pensioners.
Establishment of the 8th Pay Commission
Trade unions are also calling for the immediate constitution of the 8th Pay Commission. With over ten years having passed since the establishment of the 7th Pay Commission in February 2014, union leaders argue that a new commission is necessary to address the evolving economic conditions and revise salary structures for government employees.
Higher Income Tax Exemption Limits
The unions have proposed raising the income tax exemption limit to ₹10 lakh per annum, which they believe will provide much-needed relief to salaried individuals. Additionally, they are advocating for pension income to be exempt from taxation.
Social Security for Gig Workers and Agricultural Laborers
In recognition of the changing workforce dynamics, trade unions are pushing for comprehensive social security schemes for gig workers and agricultural laborers. They emphasize that these groups often lack access to essential benefits and protections afforded to traditional employees.
Restoration of Old Pension Scheme (OPS)
Another significant demand is the restoration of the Old Pension Scheme (OPS) for government employees. Union leaders argue that this would provide greater financial security for retirees and help stabilize their post-retirement lives.
Additional Proposals
Union representatives also suggested imposing higher taxes on the super-rich, specifically an additional 2% tax, to fund social security initiatives for informal workers. They raised concerns about declining permanent employment in Central Public Sector Enterprises (CPSEs), which has dropped from 21 lakh in the 1980s to just over 8 lakh today.
Conclusion
The upcoming budget presentation on February 1, 2025, will be a crucial moment for addressing these demands. Trade unions are hopeful that their proposals will lead to meaningful changes that enhance social security and improve living standards for workers across India. As discussions continue, stakeholders from various sectors eagerly await how Finance Minister Nirmala Sitharaman will respond to these pressing issues.
Disclaimer: The information provided in this article is based on recent reports regarding trade union demands ahead of Budget 2025.
