Lok Sabha Question No. 993 (UNSTARRED), answered on 2018-12-17
Subject: Welfare of Labourers
Ministry: LABOUR AND EMPLOYMENT
Asked by: KUNWAR PUSHPENDRA SINGH CHANDEL

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 993 TO BE ANSWERED ON 17.12.2018

## WELFARE OF LABOURERS

†993. SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

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

- (a)  the  details  of  various  cesses  being  levied  by  the  Government  for the welfare of the labourers;
- (b) whether the Government has contemplated/ is contemplating/formulating  any  incentive  policy  for  the  industries which are acting in compliance with the labour laws particularly in regard to women and if so, the details thereof;
- (c)  whether  the  Government proposes to make more effective policy based efforts  to  make  cess  more  useful  for  the  labourers  of  the manufacturing sector; and
- (d) if so, the details thereof?

## ANSWER

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

(a) & (b): 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 30.09.2018.

Pradhan  Mantri  Rojgar  Protsahan  Yojana  has  been  initiated  by  the Ministry of Labour and Employment in the year 2016-17 for incentivizing  employers  for  promoting  employment  generation.  Under this scheme, Government is paying the entire employer's contribution (12 % or as admissible) towards the EPS and EPF for all sectors w.e.f. 01.04.2018  to  all  eligible  new  employees  and  is  applicable  for  all sectors for the next 3 years. Till 30th July, 2018, benefits have been given to 76908 Establishments covering 61.36 lakh beneficiaries under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).

(c) & (d): There  is  no  labour  welfare  cess  in  the  manufacturing sector.  However,  in  order  to  provide  social  security  and  welfare benefits to workers, including those in the manufacturing sector, both in the organised and unorganised sector, the Government is implementing  various  Acts  and  Schemes.  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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