Lok Sabha Question No. 1053 (UNSTARRED), answered on 2018-12-17
Subject: Building and other Construction Workers Welfare Cess
Ministry: LABOUR AND EMPLOYMENT
Asked by: SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, KAPIL MORESHWAR PATIL, PRITAM GOPINATH MUNDE, VINAYAK BHAURAO RAUT, DHARMENDRA YADAV

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1053 TO BE ANSWERED ON 17.12.2018

## BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS

## 1053. DR. SHRIKANT EKNATH SHINDE:

SHRI ANANDRAO ADSUL:

SHRI KAPIL MORESHWAR PATIL:

DR. PRITAM GOPINATH MUNDE:

SHRI VINAYAK BHAURAO RAUT:

SHRI DHARMENDRA YADAV:

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

- (a)  whether the Government proposes to utilise the funds out of the Labour to  their  Welfare  Cess  to  pay  the  employers  who  provide  the  maternity benefit  of  26  weeks  paid  leave  to  female  workers,  if  so,  the  details thereof;
- (b)    whether  the  Building  and  Other  Construction  Workers  Welfare  Cess (BOCW) Act provides for collection of Cess for construction workers by States/Union territories, if so, the details thereof;
- (c)    whether  the  States/UTs  are  required  that  the  welfare  schemes  funded from Cess fund should be exclusively for building and other construction workers only, if so, the details thereof;
- (d)  whether diversion of cess fund for welfare of other category of workers is permissible under the BOCW Act;
- (e)  if so, the details thereof and if not, the reasons for proposed utilisation of Labour Welfare Cess Fund to provide the maternity benefit to other field workers;
- (f)    the  details  and  role  of  the  welfare  board  for  the  welfare  of  building construction workers in the country; and
- (g) the steps being taken by the Government  for the welfare and development of workers including construction workers in the country?

## ANSWER MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

- (a): Pursuant to the directions of Hon'ble Supreme Court contained in its judgement dated 19.03.2018 in W.P. (C) No. 318/2006, the Central Government has formulated a model welfare scheme for BOC workers which,

inter  alia,  envisages  following  maternity  benefit,  out  of  the  BOCW  welfare cess  fund,  for  those  BOC  workers  who  are  not  covered  under  Ayushman Bharat:-

- (i)Paid  maternity  leave  to  registered  construction  workers  ranging  from  90 days to 26 weeks for up to two deliveries.
- (ii) Rs.6000/-per delivery for up to two deliveries to the wife of the registered construction workers, which will be in addition to any other benefit received from any Government Scheme in this regard.
- (b) to (e): The  Building  and  Other  Construction  Workers  (Regulation  of Employment and Conditions of Service) Act, 1996 provides safety, health and welfare  measures  for  the  building  and  other  construction  workers.  For  the purposes of the above said Act, a cess is levied and collected at the rate of 1% of the cost of construction by the State Governments under the Building and Other Construction Workers' Welfare Cess Act, 1996. The States, through their  respective  State  Building  and  Other  Construction  Workers  Welfare Boards,  constituted  under  BOCW  Act,  utilize  the  cess  fund  in  terms  of Section  22  of  BOCW  Act,  1996.  The  States  and  Union  Territories  have collected around Rs. 45473.1 Crore and have spent an amount Rs. 17591.592 Crore upto 30.9.18.

The Welfare Schemes funded from BOCW welfare cess fund are exclusively for the building and other construction workers. Diversion of the cess fund for welfare of other category of workers is not permissible under the BOCW (RECS) Act, 1996.

- (f): Utilization  of  Cess  Fund  under  Section  22  of  the  Building  and Other  Construction  Workers  (RECS)  Act,  1996  Act  and  the  registration  of building and other construction workers as beneficiary under section 12 of the said Act is done by the State Building and Other Construction Workers Welfare Boards.
- (g): Besides  the  above,  the  Government  is  implementing  various Acts and Schemes to provide social security and welfare benefits to workers, both  in  the  organised  and  unorganised  sector.  The  social  security  to  the workers in the organized sector is provided mainly through five Central Acts, namely, the Employees' State Insurance Act, 1948, the Employees' Provident Funds & Miscellaneous Provisions Act, 1952, the Employee's Compensation Act, 1923, the Maternity Benefit Act, 1961 and the Payment of Gratuity Act, 1972.

In order to provide social security benefits to the workers in the unorganised  sector,  the  Central  Government  is  implementing  Unorganised Workers' Social Security Act, 2008, to provide welfare schemes in matters relating  to  life  and  disability  cover,  health  and  maternity  benefits,  old  age protection to the unorganised workers. Various Ministries/Departments of the Central  Government  are  implementing  such  social  security  schemes  like Indira Gandhi National Old Age Pension Scheme (Ministry of Rural Development); National Family Benefit Scheme (Ministry of Rural Development); health and maternity schemes (Ministry of Health and Family Welfare).  The  Central  Government  has  also  converged  the  social  security scheme of Aam Aadmi Bima Yojana (AABY) with Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) to provide life and disability coverage to the unorganised workers depending upon their eligibility. These converged schemes give coverage of Rs.2 lakhs on death at premium of Rs.330/- per annum and coverage of Rs.2 lakhs on accidental death at premium of Rs.12 per annum, besides disability benefits as  per  the  scheme.  The  annual  premium  is  shared  on  50:50  basis  by  the Central  Government  and  the State  Governments.  These  schemes  are implemented and monitored by Life Insurance Corporation of India and the concerned State Governments.

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