Union Budget 2024: Trade Unions Call For Return To OPS, Enhanced Tax Relief for Salaried Employees

Union Budget 2024: Key among the demands were the constitution of the 8th Pay Commission, an increase in tax rebates for the salaried class, and the restoration of the old pension scheme

Finance Minister Nirmala Sitharaman chairs the seventh pre-Budget consultation meeting with representatives of trade and services to take suggestions for the Union Budget 2024-25, in New Delhi.

Source : PTI

Union Budget 2024: In a crucial pre-Budget meeting held on Monday, trade union leaders laid out a series of demands to Finance Minister Nirmala Sitharaman, focusing on issues affecting salaried employees, pension schemes, and public sector undertakings (PSUs).

Key among the demands were the constitution of the 8th Pay Commission, an increase in tax rebates for the salaried class, and the restoration of the old pension scheme (OPS). The unions also urged the government to halt the ongoing privatisation of PSUs and to scrap the new pension scheme in favour of reinstating the OPS.

"The ceiling limit for the income tax rebate for the salaried class on their salary and gratuity must be substantially raised. Government-sponsored social security fund for the unorganised workers and agricultural workers has to be set up to provide them with defined universal social security schemes, including a minimum pension of Rs 9,000 per month and other medical and educational benefits," the Central Trade Unions (CTUs) stated in their memorandum.

The unions further demanded the immediate filling of existing vacancies in central government departments and PSUs, and the cessation of contract and outsourcing practices.

To address resource mobilisation, the CTUs suggested increasing corporate, wealth, and inheritance taxes rather than burdening the general populace with GST on essential food items and medicines. "Over the decades, corporate tax rates have been slashed unjustly, while increasing the indirect tax burden on common people has resulted in an utterly regressive tax structure. That must be corrected in the interests of fairness, equity, and propriety. Even a one percent inheritance tax on the super-rich could significantly boost Budget receipts," the memorandum argued.

Representatives from 12 trade unions, including INTUC, AITUC, CITU, AIUTUC, TUCC, and UTUC, participated in the meeting. The Bharatiya Mazdoor Sangh (BMS) submitted a separate memorandum outlining its specific demands.

Among BMS's proposals were expanding the scope of the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) to guarantee 200 days of work for each family and linking agriculture and allied sector work to MGNREGA. Additionally, they called for health benefits for all persons over 60 years of age, suggesting a contributory scheme with a token amount of Rs 100 per month and coverage of Rs 5 lakh annually.

Furthermore, the BMS recommended extending the income criteria for the Ayushman Bharat Scheme from Rs 1.20 lakh to Rs 3 lakh, thereby broadening its reach and impact. These comprehensive demands reflect the unions' focus on improving social security, tax equity, and job security ahead of the upcoming Budget discussions.