By Dr. Gyan Pathak
Two important piece of news this week may shock the conscience of many, but not the ruling establishment of India. The first is that Minimum pension for workers under one of the social security coverage given under Employment Provident Fund Organisation (EPFO) remains at Rs 1000 per month since 2014, while the Centre boasted that India’s social protection coverage has doubled just within three years from 24.4 per cent in 2021 to 48.8 per cent in 2024. The second is that female employment showed to be doubled since 2014, but counting unpaid women helping in the family work without payment as workers.
Now a days, there are many social security schemes in the country, such as Rs 2500 per month for women in Delhi, as financial assistance to be paid to women between the age of 18-59. There are also old age pensions – Rs 2000 per month for people between the age of 60-69 years and Rs 2500 per month for persons over 70 years of age. Additional old age pension for SC, ST and minority community people between the age of 60-69 is Rs 500. They are all for free. But for workers, who were working and were contributor to the provident and family pension fund, would get the minimum Rs 1000 as pension is simply injustice when we consider the price rise since 2014. It is double injustice when we compare it to the financial assistance that is given to simply because of political considerations and free. It is the height of insensitiveness to workers under the double engine BJP government both in Delhi and at the Centre.
Apart from insensitiveness to workers, the social security schemes not only in Delhi but in states also need to be streamlined since these has created ridiculous anomalies. For example, a woman of the age of 59 can get Rs 2500 as financial assistance, but when she turns 60, her financial assistance under old age pension would be reduced to Rs 2000, as if her problems would reduce when she turns 60. Actually, it is otherwise. A woman between 60-69 will have greater medical and other problems, but would get less financial assistance at only Rs 2000, compared to Rs 2500 given to women below 60. Now think about a female worker who get minimum family pension under EPFO at Rs 1000 only. It is simply ridiculous.
PM Narendra Modi led government boasting for doubling the social security coverage has kept the minimum family pension since 2014, despite the Central Trade Unions and department related Parliamentary Standing Committees have repeatedly asked the government to increase minimum family pension for workers.
During the budget consultation by the Union Minister of Finance Nirmala Sitharaman several workers organisations had repeated their demand to increase minimum family pension. A delegation of pensioners had demanded to increase minimum pension from Rs 1000 per month which centre had fixed in 2014 to Rs 7,500 along with dearness allowance. The demand for increase in minimum pension has been made every year since 2014, but no action has been taken by the Centre.
Only a few days ago, the department related Standing Committee of the Parliament has submitted its report on the 2025-26 demands for grants to the Union Ministry of Labour and Employment, in which it said that there was an urgent need to revise the minimum monthly pension of Rs 1,000 for member-pensioners under EPFO.
It would be an irony to know that the Modi government has taken credit several times for the pension hike in 2014. The reality is that the decision was taken by the Congress led UPA led government and Modi government had just implemented it. At the time when Congress led UPA had decided to increase the minimum pension to Rs 1000, BJP was in opposition which had criticized the amount as insufficient. BJP leader Prakash Javadekar had criticized the Rs 1000 pension as “pittance” and demanded minimum pension to be fixed at least at Rs 3000 per month. Nevertheless, when Modi government came to power, it refused to increase minimum pension from Rs 1000, in spite of sharp hike in prices and inflation, and repeated demand by workers and parliamentary committees’ recommendations to increase it.
Minimum workers’ pension payment in India is at present Rs 980 crore annually. The Parliamentary Standing Committee heart the government’s argument that it cannot afford a further financial burden, and therefore it can’t increase the workers’ minimum pension. Such a statement by Modi government is ridiculous, given its claim on increased spending in social security coverage to various social groups free, though for political considerations.
Workers of the organized sector must be respected by giving fair wages and pensions, especially when Modi government boasts of implementing Pradhan Manti Shram Yogi Maandhan Yojna, under which minimum monthly pension of Rs 3000 is to be given to workers from unorgansied sector, but with many conditions. Effectively, it turned out to be political stunt introduced just before Lok Sabha election 2019 in the interim central budget. Current enrolment by March 2025 under the scheme is 46.12 lakh only. Rs 3000 pension for workers is also ridiculous when women between 10-59 can get financial assistance of Rs 2500 free, old age pension of Rs 2000 or 2500 between 60-69, and Rs 2500 old age pension for above 70 years is free. Where is the respect for workers that government claims to give?
Now come to the claim of doubling female workforce. Union Ministry of Labour and employment has recently posted in its facebook page that there was “a remarkable rise in female employment from 22 per cent in 2014 to 40.3 per cent 2024! This surge is a testament to India’s progressive policies, empowering women and strengthening the nation’s workforce for brighter, more inclusive future.”
However, what the ministry concealed is the way this so-called achievement was made. The government counted all women as employed who are helping the family in work or giving care to family members without getting any wage. Government is not presenting the real picture. Actual position is that women’s participation in paid work in India is only about 25 per cent, which was 21.8 per cent in 2019, and 22.5 per cent in 2014. Women participation has doubled to 40.3 per cent claim is vail boasting, and that is achieved only by counting unpaid women in household works as employed.
There must be some limit to insensitivity of the PM Narendra Modi led government towards workers in general and women workers in particular. We must respect them for their work with justified wages and pensions. Other social security coverage for non-workers is altogether another category, but why should workers get less than non-workers? It would affect the workers’ morale. (IPA Service)
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