Govt Plans Rs 76,000 Crore Pension Cess For Construction Workers

Despite their vital contributions to the economy, many unorganised construction workers face financial challenges in old age. To address this issue, the government plans to amend the Building and Other Construction Workers Act (BOCW), 1996, and create a Rs 76,000 crore cess to provide pensions to workers aged 60 and above, according to the Economic Times.

According to the Labour and Employment Ministry, India has about 8.5 million construction workers, with only about 50 per cent currently registered with the state welfare boards. This leaves the rest ineligible for government benefits. However, the ministry is determined to change this. They plan to streamline the registration and renewal procedures and eliminate the 90-workday limit to be eligible for benefits, offering hope for the future of these workers.

Construction workers registered on the government-run e-Shram portal receive monetary assistance and other social security benefits. This digital platform intends to build an extensive database of unorganised workers in various industries, such as construction.

Currently, some 27.3 million workers from different fields are registered with the e-Shram platform. To ensure pensions for construction workers, the government aims to create a pension fund by diverting a certain amount from taxes on infrastructure projects.

The Building and Other Construction Workers (BOCW) Act offers construction workers access to various welfare benefits, which they can avail of via a card exclusively issued. With this card, workers can apply for various government welfare schemes, like medical assistance, maternity benefits, and accident insurance coverage. Besides pensions, cardholders receive financial support for children’s education, and financial aid to families in case of death. Additionally, they are eligible for group insurance, loan facilities, funeral support, and marriage assistance for children. These benefits aim to improve the overall well-being of the workers.