NEW DELHI: The Standing Committee on Labour, Textiles and Skill Development has recommended an enhancement of the minimum pension under the Employees’ Pension Scheme (EPS), an upward revision of the National Floor Level Minimum Wages (NFLMW), and mandatory Employees’ State Insurance (ESI) and Provident Fund (PF) coverage for contract workers. The 15th report on the ‘Demand for Grants 2026-2027’ was tabled in the Lok Sabha on Tuesday by Committee Chairperson Basavaraj Bommai.
“The Committee has recommended an urgent and comprehensive review of the minimum pension under the Employees’ Pension Scheme 1995, which currently stands at Rs. 1,000 per month, with a view to enhancing it and exploring the feasibility of increasing budgetary support to the scheme,” the report stated.
The report also called for an upward revision of the National Floor Level Minimum Wage. It strongly urged the Ministry to “undertake an urgent review and upward revision of the NFLMW so that it adequately reflects the prevailing cost of living, inflation, and the basic consumption needs of workers.” It emphasised the need for a transparent, evidence-based mechanism for periodic and automatic revision of the floor wage to prevent erosion of real wages due to inflation and to ensure minimum income security for vulnerable workers.
The Committee further recommended that States comply with the wages and called on the Ministry to establish a robust monitoring and compliance framework to ensure that no State fixes minimum wages below the notified national floor wage. Clear operational guidelines and a periodic review system with State Governments were also suggested to guarantee uniform adherence to the national wage benchmark.
Social security for contract workers
The report noted that many contract workers perform duties similar to regular employees but often face delays in receiving relief and compensation following workplace accidents. It recommended that “timely coverage of such workers under social security schemes like Employees’ State Insurance (ESI) and Employees’ Provident Fund (PF) be ensured.”
It also urged the Union and State Governments to establish mechanisms to monitor compliance and ensure prompt disbursement of compensation.
An official release from the Labour Ministry described the report as outlining a series of transformative recommendations aimed at strengthening social security, ensuring fair wages, and modernising labour administration across India.