Setting up of Welfare Boards

The Government has enacted the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and Other Construction Workers’ Welfare Cess Act, 1996 with a view to regulating the employment and conditions of service of building and other construction workers and provide for their safety, health and welfare measures etc. Under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, every State Government has to constitute a State Building and Other Construction Workers Welfare Board. The functions of the Board include providing welfare and social security measure such as immediate assistance to a beneficiary in case of accident, payment of pension to the beneficiaries who have completed the age of 60 years, loan and advances for construction of house, paying amount in connection with premia for Group Insurance Scheme etc.

As per the information received from the States/UTs, 33 States/UTs have constituted the Welfare Boards. The Central Government has issued directions to the concerned State Governments/UTs to set up the Welfare Board under Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
Under the Building and Other Construction Workers’ Welfare Cess Act, 1996, a cess @ 1% of the construction cost is collected by the State and given to the respective Welfare Boards for meeting the expenses on welfare of construction workers. As per information received from States/UTs total amount of cess collected up to 30.6.2011 is Rs. 5265.57 Crore (approximate).