Cess collected for construction workers too low for their welfare

Cess collected for construction workers too low for their welfare

News:

1. According to the National Campaign Committee for Central Legislation on Construction Labour (NCC-CL), the cess collected from construction companies is extremely low.

Important facts:

2. According to the Building and Other Construction Workers’ Welfare Cess Act, 1996, a 1% cess has to be levied and collected on all types of construction activities.

3. This cess can be collected by government, PSUs or private players.

4. The cess collected from construction companies is meant for the welfare of construction workers.

5. According to NCC-CL calculations (based on data from National Sample Survey Office)-

Cess collection:

• Average cess collected per worker/ year is only Rs.477.1
• More than 20 States have collected less than Rs. 1,000.
• Only 4 states have collected cess Rs. 2000/ worker/ year
• Worst performers: Manipur (Rs. 113.86), Jharkhand and Tamil Nadu
• Among major states, only 3 states (Karnataka, Maharashtra and Haryana) collected cess more than Rs. 1000/ worker/ year

Worker registration:

• States with the largest number of construction workers- Uttar Pradesh, Rajasthan and Tamil Nadu
• States with high levels of worker registration: Chhattisgarh and West Bengal
• Large states with low levels of worker registration: Himachal Pradesh, Assam and Maharashtra

6. Draft model welfare scheme for Construction workers:

• Recently, the Labour Ministry released the Draft Model Welfare Scheme
• The Scheme includes pension, health and maternity benefits, life and disability insurance, education scholarships, skill development and housing benefits.