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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