Union Budget 2026 Leaves Labour Ministry Allocation Unchanged, Trade Unions Voice Strong Opposition
February 2, 2026
The Union Budget 2026 allocated ₹32,666.31 crore to the Labour Ministry, almost the same as last year's ₹32,646.19 crore. Trade unions criticized the government for neglecting employment and social security for workers. Union Finance Minister Nirmala Sitharaman said the labour reforms notification is a big reform. But unions said no funds are set aside for vulnerable workers like gig and platform workers.
This budget includes ₹20,082.70 crore for the Pradhan Mantri Viksit Bharat Rozgar Yojana under the Labour Ministry's social security department. However, unions say the budget reduces capital investment and fails to create jobs or improve healthcare and education for workers and their families.
R. Chandrashekharan, leader of the Indian National Trade Union Congress, said, "No government can depend on a corporate house for income generation and this Budget is pro-corporate." Bharatiya Mazdoor Sangh (BMS) also expressed strong dissatisfaction. They highlighted that Anganwadi, ASHA, and Mid-Day Meal workers are still not recognized as workers. The budget did not raise eligibility or minimum pension under the Employees Pension Scheme.
BMS added, "The non-increase in the wage ceiling for Employees Provident Fund and Employees State Insurance is a matter of serious concern." This, they said, will exclude many workers from vital social security schemes.
Amarjeet Kaur of the All India Trade Union Congress called the budget "full of rhetoric with no substance for the common masses" and said it favors corporations in the name of 'ease of doing business.'
The Centre of Indian Trade Unions (CITU) said, "This is a squeeze Budget that withdraws liquidity from the hands of the poor." Despite a total expenditure of ₹53.5 lakh crore, CITU claimed the budget ignores hunger and unemployment while focusing on fiscal targets.
Published - February 01, 2026 11:23 pm IST
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Tags:
Union Budget 2026
Labour Ministry
Trade unions
Social security
Employment
Workers' rights
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