In a recent Press Information Bureau (“PIB”) release dated 17th December, 2018, the Ministry of Labour & Employment (“Ministry”) has reiterated the provisions of the Maternity Cover under the Model Welfare Scheme for Building and Other Construction Workers (“Scheme”) and informed that a Building and Other Construction Workers Welfare Cess (“Cess”) shall be levied under the Building and Other Construction Workers’ Welfare Cess Act, 1996.
The Ministry has informed that such Cess shall be levied at the rate of 1% of the cost of construction and collected by the respective State Governments.
The Ministry has further clarified that the welfare schemes funded from the BOCW welfare cess fund will be exclusively for building and other construction workers and diversion of the cess fund for welfare of other category of workers will not be permissible under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996..
Source: Press Information Bureau
