Millions of workers stand to benefit now that the Indian government has agreed to long-standing union demands for a major uplift of their national pension scheme for central government employees.
This historic win is a culmination of two decades of ceaseless campaigning led by the International Transport Workers’ Federation’s (ITF) Indian railway affiliates, the All-India Railwaymen's Federation (AIRF) and the National Federation of Indian Railwaymen (NFIR).
Under the new Unified Pension Scheme (UPS), workers who complete 25 years on the job will be guaranteed a defined benefit pension equal to 50 percent of their average pay during their final year of service, and this benefit will be indexed to the rate of inflation.
The UPS offers a proportional guaranteed pension for those who complete 10 to 25 years of service, including a minimum guaranteed amount for those who work for 10 years, as well as an assured family pension in the event of a worker’s death, and a one-off lump sum payment upon retirement based on number of years of service.
Previously, under the unpopular National Pension Scheme (NPS) introduced in 2004, the defined benefit on retirement was replaced with a defined contribution system in which the final pension entitlement was entirely dependent on the market performance of investments.
“We are overjoyed and incredibly proud to be celebrating this massive victory with our railway affiliates in India,” said ITF General Secretary Stephen Cotton. “This achievement is a testament to the tireless efforts of the millions of members of AIRF and NFIR who refused to give up on their principled fight to be able to retire with dignity. Your long struggle has paid off!”
"To live is to struggle, and railway workers can be proud of their fight to retire with dignity after a lifetime of hard work," added David Gobé, Chair of ITF’s Railway Section. "Finally, the Indian government has bent to union demands for a fair pension for all railway workers. Huge congratulations to the NFIR, AIRF, and all of the ITF's affiliates who stood in solidarity with this struggle over the years. Fights like these by railway workers show us the way to social progress for the working class."
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Media contact: media@itf.org.uk
About the ITF: The International Transport Workers’ Federation (ITF) is a democratic, affiliate-led federation recognised as the world’s leading transport authority. We fight passionately to improve working lives; connecting trade unions from over 150 countries to secure rights, equality and justice for their members. We are the voice for nearly 16.5 million working women and men in the transport industry across the world.
