Budget 2026: Unions seek income tax relief, wealth and inheritance taxes, ₹9000 EPS-95 pension and more

Income tax relief for salaried individuals

Strengthening retirement and social security

The unions proposed a government-backed social security fund for unorganised and agricultural workers. They said it must provide “a minimum pension of ₹9,000 per month linked with DA (dearness allowance) and other medical and educational benefits.”

They also urged the government to rethink major retirement policies. According to them, the New Pension Scheme must be scrapped because the truncated Unified Pension Scheme “cannot replace the Old Pension Scheme.” They insisted that the OPS benefits be restored.

Further, they pressed for increasing the EPS-95 pension: “from ₹1,000 to ₹9,000 and linking it with DA.” They noted that “there should be a budgetary allocation for that.”

Lowering household costs

The unions called for reducing taxes that drive up everyday expenses. They argued that GST on essential foods, medicine and medical insurance must be “drastically reduced.”

Their memorandum suggested raising corporate, wealth and inheritance taxes as fairer alternatives. “Even one per cent inheritance tax on the super-rich can fetch a huge amount to the budget,” they said, adding that such revenue should finance education, health and other social sectors.

Improving job security and income stability

The representatives emphasised the importance of stable employment for financial planning. They demanded that all vacancies in central government departments and PSUs be filled promptly, and that fixed-term employment be replaced by regular jobs.

They emphasised that pensioners must continue to be fully covered under the provisions of the 8th Pay Commission.

To strengthen income floors, they reiterated that minimum wages should be fixed at “not less than ₹26,000 per month with indexation,” in line with the consensus of the Indian Labour Conference.

Concerns over internship scheme and insurance sector privatisation

Regarding the Pradhan Mantri Internship Yojana, they warned that its ₹63,000-crore outlay could subsidise labour costs by replacing regular jobs with low-paid interns “in the guise of skilling.”

They demanded the government “stop privatisation of LIC and GIC” and roll back the move allowing 100% FDI in the insurance sector, arguing that such reforms undermine the financial security of common people.

Regularisation of scheme workers

The unions also called for the regularisation of scheme workers such as Anganwadi, Mid-Day Meal, ASHA staff, ASHA Kiran workers, block facilitators, para teachers and others, noting that formal recognition as workers is key to improving their financial security.