BUILDING AND OTHER CONSTRUCTION WORKERS

Labour Cess under India's New Labour Codes"Labour cess" typically refers to the Building and Other Construction Workers (BOCW) Welfare Cess, a 1% levy on the cost of construction (excluding land and wages) under the Building and Other Construction Workers' Welfare Cess Act, 1996. Funds support welfare schemes like health, education, pensions, and accident benefits for construction workers.With the four new Labour Codes effective from November 21, 2025:The Code on Social Security, 2020 subsumes and repeals the 1996 Cess Act. The cess continues but with simplifications: Employers can now self-assess and pay cess liabilities (previously assessed by authorities), easing compliance. Inter-state migrant construction workers gain portability of cess-funded benefits across states.

Funds augment welfare boards for unorganised workers, including construction.

No abolition; the cess persists under the Social Security Code for ongoing worker protections, though critics note potential dilution in collection/enforcement.