In a pre-budget consultation with Union Finance Minister Nirmala Sitharaman on Monday, trade union leaders advocated for critical tax reforms and enhanced social security measures, particularly for informal sector workers. Key demands included imposing a super-rich tax, increasing corporate tax and allocating the funds to support social security initiatives for unorganized sector employees.
Super-Rich Tax and Corporate Tax Hike
Trade Union Coordination Centre (TUCC) National General Secretary, S.P. Tiwari, proposed an additional 2% tax on the super-rich to fund social security programs for informal workers. He also emphasized the need to extend social security to agricultural workers and introduce minimum wage protections for them.
Call to Revise EPFO Pension
A unanimous demand from the unions was to increase the minimum pension under the Employees' Provident Fund Organisation (EPFO) from ₹1,000 to ₹5,000 per month. Bharatiya Mazdoor Sangh (BMS) Organising Secretary, Pawan Kumar, urged the government to further link this pension amount to the Variable Dearness Allowance (VDA) to ensure inflation-adjusted payouts.
Kumar also recommended increasing the income tax exemption threshold to ₹10 lakh and exempting income from pensions from taxation altogether.
Push for 8th Pay Commission
A key demand echoed by all trade unions was the immediate constitution of the 8th Pay Commission to revise the salary structure of government employees. Centre of Indian Trade Unions (CITU) National Secretary Swadesh Dev Roye highlighted that over 10 years have passed since the 7th Pay Commission was set up in 2014, and a revision is overdue.
Decline in Public Sector Employment
Roye also raised concerns about the declining number of permanent employees in Central Public Sector Enterprises (CPSEs), which has plummeted from 21 lakh in the 1980s to just 8 lakh in 2023-24. He emphasized the need to reverse this trend to stabilize the workforce and ensure employment security.
Social Security for Unorganized Workers
The National Front of Indian Trade Unions (NFITU) called for a separate budget for the Employees' Provident Fund (EPF) and Employees State Insurance Corporation (ESIC) to better serve the needs of unorganized sector workers. NFITU National President Deepak Jaiswal also demanded formal recognition and social security benefits for the 12 million domestic workers in India.
Looking Ahead
The upcoming 2025-26 Union Budget, to be presented by Finance Minister Nirmala Sitharaman on February 1, will determine whether these demands are addressed. With the informal sector contributing significantly to India’s workforce, the trade unions’ proposals highlight the urgent need for reforms to ensure economic equity and social security.
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