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Labour Union Demands For EPF And ESI Ceiling Revision Ahead Of Budget 2026

The Bharatiya Mazdoor Sangh (BMS) met the Union Minister of Labour and Employment, Mansukh Mandaviya, to submit its demands for labour reforms, related to hike in EPF and ESI ceiling for deduction, and parity for contractual workers, among others

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BMS submits demands for workers Photo: AI
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Summary

Summary of this article

  • BMS demands EPF ceiling hike from Rs 15,000 and ESI from Rs 21,000.

  • It asks to establish a dedicated welfare board for private transport drivers.

  • Union Minister Mansukh Mandaviya assures consideration.

Ahead of Budget 2026, demands are surfacing for revising the Employees’ Provident Fund (EPF) and Employees' State Insurance (ESI) ceiling. In this regard, a delegation of the Bharatiya Mazdoor Sangh (BMS) met Union Labour and Employment Minister Mansukh Mandaviya on January 6, 2025, and presented its demands, requesting labour protection and an overhaul of workers’ benefits.

Here is the list of demands it raised.

Increase EPF And ESI Wage Ceiling

The first demand it raised is regarding raising the ceiling for EPF and ESI. The current ceiling for EPF is salary of Rs 15,000, and for ESI, it’s Rs 21,000. For people with disabilities, the ESI limit is Rs 25,000. Regarding this, BMS General Secretary Ravindra Himte said that Mandaviya has assured them that he will look into these revision demands as well as the proposal to hike the minimum pension, which is currently Rs 1,000.

Parity In Contractual Workers Rights

The memorandum also raised the issue of contractual workers. It discussed the plight of contractual workers and demanded that the government should strictly implement Clause 25(2)(5)(A) of the Contract Labour (Regulation and Abolition) Act 1970, according to which, “the Contract worker should be paid the same and similar wages at par with the workman employed by the employer in any establishment.”

It emphasised that the issues are experienced across government, public, and private sector organisations, such as the state electricity board, ESIC, Air India Express, Kundankulam Nuclear Power Plant, IOCL, private telecom, and others. The union demanded strict action against entities violating the rules and exploiting the workers.

Establishment Of Welfare Board

The meeting also highlighted the need for the transport sector. It urged the government to establish a dedicated welfare board for private transport drivers.

Other Demands

In addition to these, the union also asked for doubling the gratuity entitlement limit from 15 days to 30 days, and also take into account the 30-day period for calculating bonus. 

The delegation also raised concerns regarding initial public offerings (IPOs) in regional rural banks (RBs). This issue is pending before the chief labour commissioner. The minister assured that he will discuss the issues with Union Minister of Finance, Nirmala Sitharaman.

 As Budget 2026 is around the corner, demands from various sections are being raised for consideration under the budget.

 Per the press release of the BMS, “The Minister patiently heard all the issues, discussed the implications of the demands, and promised the delegation that the Government would consider these issues seriously and take positive steps at the earliest possible date.”

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