Centre asks states to use ₹77,000 crore BOCW cess for workers’ welfare

The Indian government has directed states to allocate the ₹77,000 crore Building and Other Construction Workers (BOCW) cess corpus towards enhancing workers' welfare. Union Labour Minister Mansukh Mandaviya made this announcement at a Mumbai-based national conference for BOCW stakeholders. The BOCW cess is a tax on construction sites that funds welfare initiatives for the over 7 crore construction workers in the country.

Mandaviya urged states to evaluate the current use of the funds, identify gaps, and explore innovative methods to ensure the long-term welfare and social security of these workers. This comes as the government seeks to bolster welfare measures for a workforce characterized by frequent mobility between construction sites and states.

Labour Secretary Chandra Bhushan Kumar stressed the importance of designing welfare facilities to be accessible wherever the workers are employed. The conference also discussed providing pension support to ageing construction workers, social security, primary education for workers' children, healthcare coverage, and improving worker safety at construction sites.

Basic amenities like toilets, sanitation facilities, creches for women workers' children, and housing support were also highlighted. The government is also urging states to strengthen the collection of BOCW funds and ensure their timely and transparent use. The assessment of the impact of the recently implemented Labour Codes will be conducted one year from now, paving the way for identifying and rectifying any shortcomings in execution.