New Delhi: Bhartiya Mazdoor Sangh (BMS) in a letter to the Union Finance Minister Nirmala Sitharaman has submitted several of its demands and suggestions ahead of the Union budget for the financial year 2025-26. The suggested measures were given during the pre-budget consultation for the upcoming financial year on Monday, January 6
The union in the letter has come up with demands and suggestions linked with the unorganized sector, social security, employment, labour codes and contractual workers. Furthermore, the labour union has also emphasized on constituting the 8th pay commission and to raise income threshold for income tax to 10 lakhs.
“Constitute the 8th Pay Commission immediately. Raise income threshold for income tax to 10 lakhs with exemption existing as of now. Pensioners must be made exempt from paying income tax on pensions,” reads the letter while emphasising that the government should immediately start wage negotiations with the Public Sector Undertakings (PSUs) wherever it is possible.
The labour welfare body further noted the need of constituting a high-power committee comprising members of BMS and other trade unions along with the management and Government representatives to discuss and decide the revival plan of sick PSUs.
Highlighting its concerns related to the “Unorganised Sectors”, BMS has suggested that the Scheme workers (ASHA, Aanganwadi, NHM, Midday-Meal etc.) must be recognised as workers. It has further underscored the need of a hike in honorarium for these workers, citing that last such announcement was made in 2018.
The trade union has further batted for the continuation of the Mahatama Gandhi National Rural Employment Guarantee Act (MNREGA) scheme, emphasizing that the wages paid to the workers of the scheme should not be less than the minimum wages. The letter further noted that each family associated with the MNREGA scheme should get a guarantee of minimum 200 work days.
It also has asked the government to immediately notified labour codes along regularizing contract workers, asserting that the government must lead the way on the issue of contract workers.
“Immediately notify on code on wages 2019 and code on Social Security 2020. Remove anti worker provisions in the other two Codes and notify the rest of the provisions in them,” said the union while noting that many government schemes have functioned really well for a few years and they can now be legislated for the benefits of the workers.
Unorganised Sector and Social Security
Talking about the funds for unorganized sector along the welfare boards, the union’s letter has further mentioned that the government should ensure funding for unorganized sector.
“Ensure funding for unorganized sectors and different industrial board such as beedi workers welfare board, Contract labour board etc. which were earlier funded through a cess. Provide special packages for labour incentives sectors like plantation, beedi, agriculture, fisheries along for new generation workers like those working in platform economy (This need urgent attention from Finance Ministry),” reads the letter.
Regarding suggestions for Budget 2025 -26
BMS puts forth it’s demands & suggestions in the Pre-Budget meeting with Hon’ble @FinMinIndia, Smt @nsitharaman & other officials in continuation of the tripartite mechanism. @LabourMinistry @mansukhmandviya#Budget2025 @MinistryWCD pic.twitter.com/Iw1WyMZmrr— Bharatiya Mazdoor Sangh (@BMSkendra) January 6, 2025
The labour union further underscored the need of clarity on linkage of E-Shram data and Welfare measures. “As E-shram data stands at 30 crores there is no clarity on its benefits. BMS is raising the issue again and again. The government should advertise both its benefits and mechanism to benefit from it, noted the letter.
In terms of social security the union has asked to increase minimum pension for EPS-95 pensioners from Rs 1000 to 5000 as a first step and then 50% of minimum wages notified and link with the VDA.
The labour body has also requested the government to extend the benefits of Ayushman Bharat Scheme to EPS pensioners along providing old age pension to all the people.
BMS has also highlighted the inequality in terms of government contribution in pensions, citing that while the government is paying a contribution of 1.16% on 15000 under EPS-95; under the Coal Mines Pension Scheme it is paying a 1.16% of Rs 1600 only. It further has noted the need of restoring the OPS instead of NPS and UPS.
Employment generation with focus on rural areas
In terms of employment generation, the labour union has suggested the government to priortise Rural based Micro and Small Industries under the PLI scheme, noting that the same will create jobs in large numbers.
“Cheaper credit lines should be made available for setting up factories in rural areas, particularly in Agro-based industries. Single-window digital licensing camps can be organized in district headquarters to ease licensing procedures for MSMEs,” it noted.
Highlighting the “Startup 20” that was on the agenda under the G20, the trade union has suggested the government to focus on self-enterprises.
“There is a good response for startups at the district level. So establish Enterprise Development Centres (EDCs) across all the districts within a stipulated period and create a framework for entrepreneurship promotion campaigns across all the districts,” reads the letter.
The labour union has also urged the government to support the union territories of J&K and Laddakh to provide more funds under the financial assistance citing that the state share of Annganwadi workers has not enhanced in the last fifteen years and only Rs 600 is being given by the state as its share.
BMS has further urged the government to regularise the daily wagers in the aforementioned union territories along pressing for the clearance of their pending dues through special assistance.
