8th Pay Commission demands take centre stage in Sitharaman's pre-Budget talks with trade unions

The unions also demanded increasing the minimum EPFO pension fivefold to ₹5,000 per month, raising the income tax exemption limit to ₹10 lakh per annum, implementing a social security scheme for gig workers, restoring the old pension scheme (OPS) for government employees, and imposing higher taxes on the super-rich in the upcoming Union Budget for 2025-26.

Trade Union Coordination Centre (TUCC) National General Secretary S P Tiwari called for halting all privatisation and corporatisation of public sector undertakings (PSUs) and suggested an additional 2% tax on the super-rich to fund social security for informal sector workers. He also stressed the need for fixed minimum wages and social security for agricultural workers.

Bharatiya Mazdoor Sangh (BMS) Organising Secretary (Northern Zone) Pawan Kumar urged the government to raise the minimum pension under the EPS-95 scheme from ₹1,000 to ₹5,000 per month as an initial step and to eventually link it with Variable Dearness Allowance (VDA). Kumar also sought tax exemptions for pension incomes and an immediate constitution of the 8th Pay Commission to revise the salary structure of government employees.

CITU National Secretary Swadesh Dev Roye echoed the demand for the 8th Pay Commission, pointing out that more than a decade has passed since the constitution of the 7th Pay Commission in 2014

The Pay Commission is a government-appointed body that reviews and recommends changes to salaries, pensions, and benefits for central government employees. Its recommendations significantly impact lakhs of employees and pensioners while influencing consumer spending and economic growth.

The 7th Pay Commission’s recommendations were implemented in 2016, introducing a fitment factor of 2.57, which increased the minimum basic pay from ₹7,000 to ₹17,990. However, unions had demanded a higher factor of 3.68 at the time.

Shiv Gopal Mishra, Secretary (Staff Side) of the National Council of Joint Consultative Machinery (NC-JCM), recently reiterated the need for a fitment factor of at least 2.86 in the next revision to address inflation and rising living costs.