Pre-budget meeting: Trade unions demand restoration of old pension scheme, higher standard cuts

Trade unions on Monday stressed their demand for restoration of the Old Pension Scheme (OPS) for government employees during pre-Budget consultations with Finance Minister Nirmala Sitharaman.

These unions also demanded formation of the 8th Pay Commission, increase in tax exemption for the salaried class and filling of vacancies. The meeting was attended by representatives of 12 trade unions including INTUC, AITUC, CITU, AIUTUC, TUCC and UTUC. Bharatiya Mazdoor Sangh (BMS) separately submitted a memorandum regarding its demand.

“For the salaried class, the income tax exemption limit on their salary and gratuity should be increased substantially. A government-sponsored social security fund should be set up for unorganized workers and agricultural workers to provide them with defined universal social security schemes including a minimum pension of Rs 9,000 per month and other medical, educational benefits, the CTU said in its memorandum.

Also read: ACMA presents key recommendations for Union Budget

Further, they have demanded that all existing vacancies in Central Government departments and PSUs be filled immediately and the practice of contracting and outsourcing be stopped.

tax burden

He further said that instead of putting the burden of GST on essential food items and medicines on the general public, resources will have to be raised by increasing corporate tax, wealth tax and implementing inheritance tax.

“For decades, corporate tax rates have been unjustly cut while simultaneously increasing the indirect tax burden on the common man resulting in a completely regressive tax structure. This must be corrected in the interest of fairness, equity and appropriateness. Even a one per cent inheritance tax with a maximum cap on the super-rich could bring in huge sums of money in budget receipts,” it said.

Also read: India Inc wants simplified capital gains tax regime

Some of its demands are that the scope of MNREGA should be expanded with the provision of guaranteeing 200 days of work for each family. Furthermore, work in agriculture and allied sectors should be linked to MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act).

It also demanded providing health benefits to all persons above 60 years of age. It can be subscribed for with a token amount of ₹100 per month and a coverage of ₹5 lakh annually. Additionally, the Ayushman Bharat scheme criteria should be increased from ₹1.20 lakh to ₹3 lakh.