Construction Worker Welfare Cess

The Government of India has notified a 1 per cent construction worker welfare cess on total construction costs, excluding land and compensation costs, to fund welfare schemes such as health benefits, education assistance and insurance for workers through state welfare boards.

The cess came into effect from 1 May following notifications issued by the Ministry of Labour and Employment along with rules relating to the four labour codes.

Under the new framework, provisions relating to welfare boards, worker registration, welfare funds and cess collection are covered under the Code on Social Security, 2020, while safety and working conditions at construction sites are governed by the Occupational Safety, Health and Working Conditions Code, 2020, replacing parts of the earlier Building and Other Construction Workers Act, 1996.

Source: BL