Construction cess to create welfare fund

Construction cess to create welfare fund

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According to Santosh Kumar Gangwar, the Minister of State (IC) for Labour and Employment, collection of cess @1% of the cost of construction incurred by the employer under the Building and Other Construction Workers Welfare Cess Act, 1996 can be used for Building and Other Construction Workers Welfare Fund exclusively for the Building and Other Construction Workers.  

He also stated that the construction workers including migrant construction workers are eligible for benefits under various labour laws including the Minimum Wages Act and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 depending upon their eligibility.  The BOCW Act provides for loans and advances to a beneficiary for construction of a house.

The States are mandated to utilize the cess fund for the welfare of the BOC workers including migrant construction workers in terms of Section 22(1) of the Act and as such the States have formulated various welfare schemes relating to BOC workers life and disability cover, health and maternity benefits, funeral assistance etc.

The office of the Chief Labour Commissioner (Central) conducts regular inspection of the construction establishments falling under the Central Sphere to ensure the compliance of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.