Government employees across the states have been agitating for quite some time for restoration of old pension scheme, since they feel cheated under new pension scheme introduced by Union Government led by BJP in 2004 and many of them had been getting a paltry monthly pension amount in the range of Rs 2000-Rs 4000, after 18 years of service in 2022. During their agitations they had claimed that they would should be getting a minimum pension of Rs 9000 per month apart from other benefits. The issue has been figuring in all the elections thereafter.

Only a week ago , Union Ministry of Finance has turned down a request to increase the monthly minimum pension under the Employees Pension Scheme (EPS) from Rs 1000 to Rs 2000, showing the insensitivity of the Modi government towards the workforce, since such a low amount is too little to survive in the old age for a worker after working entire life contributing to development of the nation.

The EPS is handled under Employees’ Provident Fund Organization (EPFO), under which there were only 7.55 million pensioners as per the Annual Report for 2022-23. It clearly meant the majority of salaried workforce are not under pension coverage, since only a fraction of them were contributing members under EPFO. Therefore, the demand for pension coverage for all workers in the formal and informal sector is being gaining ground apart from adequate pension to those who have been covered under Employees Pension Scheme and New Pension Scheme.

Of the 7.55 million pensioners under EPS, about 3.64 per cent receive pensions up to Rs 1000 per month, while 1.17 million were receiving pensions in the range of Rs 1001 and Rs 1500. Around 0.868 million pensioners received pensions between Rs 1501 and Rs 2000 per month while only 26,769 were receiving pensions more than Rs 5000 per month.

It was only recently, Modi government had boasted to hoodwink the workforce that EPFO fund interest has been hiked to 8.25 per cent for the fiscal year 2023-24, which was 3 year high. Modi government tried to appear that they are taking care of the working class but the reality was otherwise. Even in 2019-20, the interest rate was higher at 8.5 per cent, and by 2021-21 it had dropped to 8.1 per cent which was lowest in four decades.

As for Employees Pension Scheme, department related Parliamentary Standing Committee on Labour was appalled on the workers getting pensions even below Rs 1000 per months in March 2022, and hence directed the Union Ministry of Labour to collaborate with the Union Ministry of Finance to ensure adequate budgetary support. The Committee had highlighted the insufficiency of the current monthly pension to the salaried workforce under EPS.

It was under such direction of the Standing Committee, Union Minister of Labour and Employment had to send a request for the Union Finance Ministry to increase the minimum pension from Rs 1000 to Rs 2000, which was ultimately turned down. Such things happen when a government does not care at all for the deteriorating living conditions of the poor.

Government employees have been pushing for reverting to Old Pension Scheme (OPS) and it became an election issue in state elections. However, only Rajasthan, Punjab, Jharkhand, Chhattisgarh, and Himachal Pradesh rolled out OPS, even after the opposition ruled stated faced pressure from the Modi government. Now Rajasthan and Chhattisgarh are ruled by BJP, and it is not certain what will happen to the OPS. In March 2023, Modi government had extended a one-time opportunity to select central government employees to switch from the new pension schemed to the old pension scheme. For majority of central government employees New Pension Scheme is in place, since the eligibility criteria had prevented majority of them to switch to OPS.

The issue of pension coverage to all workers, including informal and agricultural laboursis gaining ground on the eve of Lok Sabha election 2024. Central Trade Unions have also added the demand for adequate pension under EPS, and Government Employees demanding reverting to Old Pension Scheme is a significant development.

Since opposition parties such as Congress, AAP, JMM, and Left-parties etc, which are part of INDIA alliance, have been supporting the complete coverage of pension to all workforce in addition to adequate amount of pension to survive in the old age, it is most likely that pension would emerge as one of the key issues in the forthcoming Lok Sabha election 2024. The stage is also set for more aggressive agitation by agriculture and non-agriculture workers in near future demanding adequate wages and pension. (IPA Service)