RSS-linked trade union’s Budget demands: Raise income tax exemption to Rs 10 lakh, notify 2 labour codes

Bharatiya Mazdoor Sangh also demands removal of 'anti-worker ' provisions before the remaining 2 labour codes are rolled out, calls for constitution of 8th Pay Commission.

Logo of Bharatiya Mazdoor Sangh | Official website of BMS

New Delhi: The Bharatiya Mazdoor Sangh (BMS)—the Rashtriya Swayamsevak Sangh (RSS)-affiliated trade union—has given a slew of suggestions to Finance Minister Nirmala Sitharaman for the Union Budget, including a demand to “raise the income threshold for income tax to Rs 10 lakh with exemptions existing as of now”, and immediately notify the Code on Wages, 2019 and the Code on Social Security, 2020. 

The RSS affiliate also demanded removal of “anti-worker” provisions from the other two labour codes—on industrial relations, and on occupational safety, health and working conditions—before they are notified.

In a pre-Budget consultation with Sitharaman, the trade union also demanded the constitution of the 8th Pay Commission. 

“Raise income threshold for income tax to 10 lakhs with exemptions existing as of now. Constitute the 8th Pay Commission immediately. Pensioners must be made exempt from paying tax on pensions,” the BMS said in a statement after a meeting that took place earlier this week. 

The four labour codes—which are part of the 29 central labour passed by Parliament between 2019 and 2020 to reform the labour market, facilitate employment generation, give impetus to economic reforms and ensure the welfare of unorganised sector workers—have not yet been rolled out and notified by the government.

Labour is part of the concurrent list, and states as well as the Centre have to notify the rules under their respective jurisdictions. Without the notification of rules, the codes cannot become operational. 

Other demands

The BMS also said that contract workers who engage in perennial or permanent work should be regularised. “The government must lead the way on this issue. Weekly offs should be provided for contract workers also. The same should apply to payment for bonuses also.”

The BMS further pitched for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and said it should continue. It argued that the scope of MGNREGA needs to be broadened, with a guarantee of 200 days of work for each family, and that workers in agriculture, allied sectors, and those related to village and microindustries should be linked to MGNREGA.

The RSS affiliate also asked the finance ministry to consider “increasing the minimum pensions for EPS-95 pensioners from Rs 1000 to 5000 as a first step and then 50 percent of minimum wages notified and link it with VDA. Extend the Ayushman Bharat scheme to EPS 95 pensioners. In addition to this, provide old age pensions to all the people”.  

The trade union has also requested the government to ensure appropriate funding for different industrial boards like the beedi workers welfare board and the contract labour board, among others, which were earlier (before the GST regime) funded through a cess. 

It asked for special packages for labour-intensive sectors like plantation, agriculture and fisheries, and said new-generation workers in the platform economy should be provided with special packages.

In addition to this, the RSS affiliate has suggested a policy for revival and diversification of loss-making public sector units. 

“Constitute a high-power committee comprising members of BMS and other trade unions along with management and govt. representatives to discuss and decide the revival plan of sick PSUs. Immediately start wage negotiations in PSUs wherever it is pending.”

The BMS further referred to the Jammu and Kashmir Bank being controlled by the home ministry. “It is requested that the J&K Bank be also brought under the finance ministry at par with all other banks”. 

The trade union also said wages of daily wagers which have been pending for 40 to 60 months should be addressed through special assistance.

(Edited by Radifah Kabir)