Central Government notifies 1 per cent construction worker welfare cess

Exam-focused facts from the 13 May 2026 current affairs briefing.

Key facts

The Ministry of Labour and Employment (MoLE) notified a 1 per cent construction worker welfare cess on total construction costs, excluding land and compensation costs, effective from May 1.
The cess must be paid within 30 days of project completion, with a penalty of 2 per cent interest per month for delayed payments.
The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 has been replaced by the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.
As of September 30, 2024, approximately 5.73 crore construction workers were registered across India.
Out of the total ₹1,17,507 crore collected as cess, ₹67,670 crore was spent on welfare schemes, leaving ₹49,800 crore unutilised.