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Misuse of Cess Funds for Construction Workers' Welfare UPSC NOTE

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  Union Labour Ministry said in a Right to Information (RTI) reply that the welfare boards for construction workers have not used the ₹70,74...

 

  • Union Labour Ministry said in a Right to Information (RTI) reply that the welfare boards for construction workers have not used the ₹70,744.16 crore cess collected for worker welfare, despite collecting ₹1,17,507.22 crore since 2005.

  • The Building and Other Construction Workers Act allows States to levy a 1-2% cess on construction costs for worker welfare.

  • As of September 2024, 5.7 crore workers are registered with 36 State Welfare Boards.

  • Complaints arose about insufficient support for construction workers during the COVID-19 lockdowns and their subsequent exodus to villages.

  • There are concerns of cess evasion, with Maharashtra showing underreported construction costs based on its cess collections.

  • The Labour Ministry couldn't provide data on the total cost of construction projects approved by local authorities.

  • States like Maharashtra, Karnataka, and Uttar Pradesh spent little of the cess on worker welfare

  • The new Social Security Code may reduce the effectiveness of cess collection by allowing self-assessment by employers and cutting cess rates.

  • The new Codes change workers' rights, turning statutory entitlements like free accommodation and sanitation into optional facilities.

  • Most States and Union Territories are not effectively implementing the Building and Other Construction Workers Act, reducing worker benefits, except in Kerala.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Misuse of Cess Funds for Construction Workers' Welfare UPSC NOTE
Misuse of Cess Funds for Construction Workers' Welfare UPSC NOTE
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