Lok Sabha Question No. 683 (UNSTARRED), answered on 2017-02-06
Subject: Welfare of Construction workers
Ministry: LABOUR AND EMPLOYMENT
Asked by: ARKA KESHARI DEO, RAYAPATI SAMBASIVA RAO, VIJAY KUMAR HANSDAK

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 683 TO BE ANSWERED ON 06.02.2017

## WELFARE OF CONSTRUCTION WORKERS

683. SHRI ARKA KESHARI DEO : SHRI RAYAPATI SAMBASIVA RAO: SHRI VIJAY KUMAR HANSDAK :

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether the money  so  collected by levying 2%  cess  on  all construction work by the Government has been fully utilised for the welfare of construction workers:
- (b)if  so,  the  money collected and spent on welfare of workers during each of the last three years;
- (c)whether  the  Government  has  issued/proposes  to  issue  Universal Account Number (UAN) to construction workers for getting benefits
- under provisions of Employees Provident Fund Act: and
- (d)if so, the details thereof State-wise along with the other measures
- taken by the Government for welfare of construction workers?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a) & (b): The Building and Other Construction Workers' Welfare Cess Act,  1996,  provides  levy  and  collection  of  cess  at  such  rate  not exceeding two per cent but not less than one per cent of the cost of construction as the Central Government may notify. The cess has been levied and being collected at the rate of 1% of the cost of construction as notified by the Central Government in the Official Gazette.

Contd..2/-

The cumulative total  of  the  amount  of  cess  collected  by  the  States/ UTs upto 20.12.2016, at the rate of 1% of the cost of construction is

Rs. 31694 crore of which Rs. 6866 crore has been spent.

- (c)  &  (d):    Universal  Account  Number  (UAN)  allotted  to  construction workers is  50,09,413 as on 17.01.2017.

The  Government  has  enacted  the  Building  and  Other  Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and other Construction Workers' Welfare Cess Act,  1996  to  regulate  the  employment  and  conditions  of  service  of building  and  other  construction  workers  and  to  provide  for  their safety, health and welfare measures.

The State Building and Other Construction Workers' Welfare Boards of the  respective  states  have  formulated  welfare  schemes  to  provide benefits  to  building  and  other  construction  workers  as  mandated under Section 22 of the Act.  Section 22 of the Act stipulates following benefits:

- (a) provide immediate assistance to a beneficiary in case of accident;
- (b) make payment of pension to the beneficiaries who have completed the age of sixty years;
- (c) sanction loans and advances to a beneficiary for construction of a house  not  exceeding  such  amount  and  on  such  terms  and conditions as may be prescribed;
- (d) pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may deem fit;
- (e) give such financial assistance for the education of children of the beneficiaries as may be prescribed;
- (f) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependent, as may be prescribed;
- (g) make  payment  of  maternity  benefit  to  the  female  beneficiaries; and
- (h) make provisions and improvement of such other welfare measures and facilities as may be prescribed.

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