Challenges faced by migrant workers and ways to improve welfare access

Source: The post Challenges faced by migrant workers and ways to improve welfare access has been created, based on the article “The barriers faced by construction workers” published in “The Hindu” on 18th March 2025. Challenges faced by migrant workers and ways to improve welfare access.

UPSC Syllabus Topic: GS Paper 3-Infrastructures

Context: India’s construction sector contributes about 9% to the national GDP and is projected to reach $1.4 trillion by 2025. However, concerns over labour shortages have emerged, with some attributing this to welfare schemes discouraging relocation. This overlooks deeper structural challenges faced by construction workers, especially migrants.

Current Status of India’s construction sector

1. Around 3 crore workers are expected to be employed in the construction sector by 2030.
2. The The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act), provides welfare provisions, but access remains difficult.
3. 5.65 crore workers are registered with State construction boards, which have collected around ₹70,000 crore in welfare cess.
4. A 2023 Parliamentary Standing Committee report found that 75% of the collected cess remains unutilized due to fragmented databases and administrative hurdles.

Challenges Faced by migrant workers in India’s construction sector

1. Documentation Barriers:

• Many workers lack permanent addresses, making it difficult to obtain birth certificates, residence proof, and other essential documents.
• The requirement for an employment certificate proving 90 days of work creates obstacles. While some States allow self-certification or trade union verification, most rely on employer-issued certificates, which contractors often refuse to provide.

2. Delayed and Inaccessible Welfare Benefits:

• Workers affected by seasonal employment disruptions, such as heat waves or pollution-related construction bans, struggle to access financial aid.
• The lack of a digital public infrastructure delays direct benefit transfers and creates administrative challenges during crises.

3. Inter-State Welfare Inaccessibility:

• Migrant workers registered in one State cannot access benefits in another due to non-interoperable systems.
• For example, a worker registered with the Haryana BOCW Board loses access upon relocating to Delhi, leading to welfare discontinuity.

Way forward

1. National Labour Identification System: A system similar to One Nation One Ration Card, linking BOCW registrations to UAN on e-Shram, would enable inter-State portability of welfare benefits.
2. Digitized Welfare Access: A central digital platform with Aadhaar-based verification and real-time tracking can improve accessibility. Standardized workflows would reduce administrative delays and improve transparency.
3. Simplified Documentation and Registration:

• Alternative proofs should be accepted to ease the verification process.
• On-site registration camps at construction sites can reduce dependence on employer-issued certificates.

3. Skill Development and Workplace Improvements:

• Industry-specific skilling programs can help address labour shortages and improve productivity.
• Safe and dignified work environments are necessary to retain workers and enhance efficiency.

Conclusion

Labour shortages in the construction sector cannot be resolved without addressing systemic barriers to welfare access. Ensuring inter-State benefit portability, simplifying registration processes, and improving workplace conditions will help build a stable, skilled, and resilient workforce.

Question for practice:

Discuss the structural challenges faced by migrant workers in India’s construction sector and suggest measures to improve their welfare access and job stability.