Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, chaired the eighth Pre-Budget Consultation meeting with stakeholders and trade union representatives on Monday. The discussion was held in preparation for the Union Budget 2025-26 and focused on understanding the perspectives of trade unions regarding the upcoming budget.
This interaction is part of the government’s annual pre-budget tradition aimed at gathering input from diverse sectors to shape policies and allocate resources effectively.
In a social media post, the Ministry of Finance stated: “Union Minister for Finance & Corporate Affairs Smt. @nsitharaman chairs the eighth Pre-Budget Consultation with stakeholders and representatives from trade unions in connection with the upcoming Union Budget 2025-26, in New Delhi.”
The meeting was attended by Union Minister of State for Finance, Pankaj Chaudhary, along with senior officials, including the Finance Secretary, Secretaries from the Department of Economic Affairs and Department of Investment and Public Asset Management (DIPAM), representatives from the Labour Ministry, and the Chief Economic Adviser to the Government of India.
During the customary pre-budget meeting, trade union leaders proposed a super-rich tax and an increase in corporate tax to fund social security for informal workers.
Speaking to reporters after the meeting, Trade Union Co-ordination Centre (TUCC) National General Secretary, S.P. Tiwari, suggested an additional 2 per cent tax on the super-rich to support social security measures for informal workers. He also called for social security benefits to be extended to agricultural workers and for their minimum wages to be fixed.
Trade unions pressed for an increase in the Employees’ Provident Fund Organisation (EPFO) minimum pension from ₹1,000 to ₹5,000 per month. They also demanded the immediate constitution of the 8th Pay Commission in the upcoming 2025-26 Budget.
Bharatiya Mazdoor Sangh Organising Secretary (Northern Zone), Pawan Kumar, suggested that the EPS-95 minimum pension be raised to ₹5,000 per month as a first step, with subsequent adjustments linked to the Variable Dearness Allowance (VDA). He also proposed raising the Income Tax exemption threshold to ₹10 lakh and exempting pension income from tax.
Centre of Indian Trade Unions (CITU) National Secretary, Swadesh Dev Roye, echoed the demand for the immediate constitution of the 8th Pay Commission, noting that over a decade had passed since the 7th Pay Commission was established in February 2014.
He expressed concern over the decline in the number of permanent employees in Central Public Sector Enterprises, which has fallen from 21 lakh in the 1980s to just over 8 lakh in 2023-24.
National Front of Indian Trade Unions (NFITU) National President, Deepak Jaiswal, called for a separate budget for the Employees’ Provident Fund (EPF) and Employees’ State Insurance Corporation (ESIC) to provide social security benefits to workers in the unorganised sector. Trade unions also demanded that the 12 million domestic workers in India be granted worker status and social security.
The Union Budget for 2025-26 will be presented by Finance Minister Nirmala Sitharaman on 1 February.
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