New data shows that on pension, Left bats for elite, not majority of the working poor

It shows that barely 4 percent of the country’s workers have EPF accounts.

• Less than half of one per cent (0.47%) of the poorest Indian workers, those earning less than Rs 19,000 a year, belong to EPFO.

• Only 0.33 per cent (less than one in 300) of those earning between Rs 19,000 and Rs 35,000 a year are EPF members.

• In the category of those earning between Rs 35,000 and Rs 60,000, only 1.3 per cent are EPF beneficiaries.

In other words, of the bottom 75% of the workers across the country, only 2.1 per cent belong to the EPFO.

The survey also shows that only 2.7 per cent of workers belong to trade unions. Of these, over half fall in the top income class. Trade union members who are below median earners (i.e. those who earn less than Rs 35,000 per year) make up less than half of one percent (0.47%) of India’s earners. This highlights the extent to which India’s trade union movement is alienated from the interests of the very poor.

This also helps explain why Left parties have fought so hard for the 9.5% decision on EPF, which patently only benefits the top income categories, while they remain unconcerned about the need for the poor to have pensions.

According to the survey, the income distribution across the country shows how a majority of the working population are low-income earners.

• As of late 2004, half of India’s earning workers had an annual income below Rs 35,000 per year, and half above it.

• The bulk (50%) of India’s working population earned between Rs 19,000 to Rs 60,000 per year.

• The bottom 25 percent earned below Rs 19,000.

• Only the top 25 percent earned above Rs 60,000. Thus, the aam aadmi—who makes up 50 percent of India’s workers—earns between Rs 19,000 and Rs 60,000 per year.

Clearly, the trade union members (2.7% of India’s earners) or EPF members (4% of India’s earners) represent only a very narrow section of working India. The Left has ensured that they get a higher share of the pie but with its opposition to the pension reform Bill, it has blocked initiatives to offer old-age security to the rest of working India.