Home India Ministry of Labour and Employment Parliament Question: Welfare of Construction Workers...
Date: 2025-08-18 Category: Not Applicable State: Union Government Country: India

Parliament Question: Welfare of Construction Workers

Issued by Ministry of Labour and Employment · Not Applicable

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Executive Summary & Key Takeaways

This document summarizes the Indian government's response to questions regarding the welfare of construction workers, specifically concerning the implementation of the Building and Other Construction Workers (BOCW) Acts of 1996. Key points include: * **Legislative Changes:** The BOCW Regulations of Employment and Conditions of Service Act, 1996, and the BOCW Welfare Cess Act, 1996, have been subsumed under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, and the Code on Social Security (SS) Code, 2020, respectively. Both codes were notified on September 29, 2020. * **Cess Collection and Utilization:** A 1% cess on the total cost of construction is collected by State Governments or Local Authorities and transferred to the State BOCW Welfare Boards. These funds are used to provide social security benefits to construction workers, including accidental assistance, education for their children, housing loans and advances, pensions, insurance, medical assistance, and maternity benefits. The disbursement of these funds is managed by the respective State Boards. * **Safety and Working Conditions:** The Central Government has implemented an inspection scheme for establishments and conducts special programs to enforce safety measures at construction sites within the Central Sphere. Sensitization programs on safety measures are also conducted periodically. Data related to the State sphere is maintained by the concerned State Governments. * **Grievance Redressal:** State BOCW Welfare Boards maintain data on complaints and grievances filed by construction workers regarding safety violations and non-payment of wages. * **Future Measures:** The response indicates that worker safety and welfare in the construction sector are now addressed through the OSH Code, 2020, and the SS Code, 2020, implying that legal and regulatory measures are ongoing through these frameworks.

Key Entities Referenced

Building and Other Construction Workers Regulations of Employment and Conditions of Service Act, 1996: A labour law in India concerning the regulation of employment and conditions of service of building and other construction workers. Building and Other Construction Workers Welfare Cess Act, 1996: An Indian Act that provides for the levy and collection of a cess on construction costs to fund welfare measures for building and other construction workers. Occupational Safety, Health and Working Conditions Code, 2020: A consolidated Indian labour code that subsumed several existing laws related to occupational safety, health, and working conditions, including the Building and Other Construction Workers Regulations of Employment and Conditions of Service Act, 1996. Code on Social Security, 2020: An Indian code that consolidates laws related to social security for employees, including provisions relevant to construction workers, and subsumed the Building and Other Construction Workers Welfare Cess Act, 1996. SUSHRI SHOBHA KARANDLAJE: Minister of State for Labour and Employment who provided the answer to the parliamentary question. Central Government: The Union Government of India. State Government: The government of an individual state within India, responsible for collecting cess and transferring it to the State BOCW Welfare Board. State BOCW Welfare Board: State-level entity responsible for managing funds collected under the Building and Other Construction Workers Welfare Cess Act, 1996 and disbursing benefits to construction workers.
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GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 4020 TO BE ANSWERED ON 18.08.2025 WELFARE OF CONSTRUCTION WORKERS 4020. DR. SHASHI THAROOR: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a)the status of implementation of the Building and Other Construction Workers (Regulations of Employment and Conditions of Service) Act, 1996 and the rules under the Act; (b)the allocation and utilisation of funds collected under the Building and Other Construction Workers Welfare Cess Act, 1996, including the process for disbursement of these funds to support the welfare of construction workers; (c)the details of the initiatives or programmes implemented by the Government to improve safety standards and working conditions for construction workers, along with an assessment of their effectiveness; (d)the details of the number of complaints or grievances filed by construction workers regarding safety violations, non-payment of wages or lack of adequate protections during the last five years and the current year; (e)whether the Government proposes any legal or regulatory measures to address the issues of worker safety and welfare in the construction sector; and (f)if so, the details thereof? ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE) (a) to (f): The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act,1996 (Act) and the Building and Other Construction Workers Welfare Cess Act, 1996 (Cess Act), have been subsumed in the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 and the Code on Social Security (SS Code), 2020, respectively. Both the Codes were notified on 29.09.2020. Contd..2/-::2:: Under the Cess Act, cess at the rate of 1% of the total cost of construction, is collected by the State Government or Local Authority and transferred to the State BOCW Welfare Board (Board) to fund the functioning of the Board. The funds so collected are utilized by the Boards to provide social security benefits, including accidental assistance, education of wards, loans and advances for housing, pension, insurance, medical assistance, maternity benefit etc. to building workers. The process for disbursement of these funds is managed by the respective Board. The Central Government has devised a well-designed inspection scheme of the establishments. Special programmes are organized from time to time for implementation of safety measures through inspection at construction sites in the Central Sphere under the provisions of the Act to enforce the compliance of safety provisions. Besides, sensitization programmes for safety measures are also conducted from time to time. The details pertaining to the State sphere in this regard are maintained by the concerned State. The respective Board maintains updated data on the number of complaints or grievances filed by construction workers regarding safety violations, non-payment of wages, etc. *****

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