Section 34: Scope and Coverage for Building and Other Construction Workers

Overview

Section 34 of the Code on Social Security, 2020, deals with the social security and welfare provisions specifically designed for building and other construction workers (BOCW). This section lays the groundwork for ensuring these workers, often amongst the most vulnerable in the Indian workforce, have access to crucial benefits like financial assistance for education, marriage, health, and housing. It doesn’t directly deal with schemes like Provident Fund or ESI, but rather establishes *who* is eligible for benefits administered through the Building and Other Construction Workers Welfare Boards established under the Act.

Who is Covered?

• Classes of employees and establishments covered: This section broadly covers workers engaged in all types of construction work, including residential buildings, commercial complexes, roads, highways, bridges, dams, and other infrastructure projects. This includes workers employed directly by employers, as well as those engaged through contractors.
• Any eligibility conditions such as length of service or wage limits: To be eligible for registration with the Welfare Board and subsequent benefits, a worker must be engaged in building or construction work for a minimum period of 180 days in a calendar year. There is no specified wage limit for eligibility. This includes migrant labourers, contractual workers, daily wage workers, and site-based employees.

Benefits and Contributions

• What benefit the employee gets: Benefits administered through the Welfare Boards (funded by the cess described elsewhere in the Code) include financial assistance for children’s education, marriage of daughters, medical expenses, housing, and old age/disability pensions. The specific benefits and their amounts are determined by the respective State Government Welfare Boards.
• Contribution responsibilities of employer, employee and government: The primary source of funding for these benefits is a cess levied on construction projects. Employers are responsible for deducting this cess (currently at rates specified by the Central Government, and varying by state) from the payments made to building workers and remitting it to the Welfare Board. Workers do *not* directly contribute to these funds. The Central and State Governments also contribute to the Welfare Boards.

Procedure and Compliance

Here’s a simplified breakdown of the process:

1. Registration: Eligible workers must register with the respective State Building and Other Construction Workers Welfare Board.
2. Cess Deduction & Remittance: Employers must deduct the prescribed cess from worker payments and deposit it with the Welfare Board within the stipulated timeframe.
3. Claim Application: Workers can apply for benefits through the Welfare Board by submitting the required documentation (proof of work, identity proof, etc.).
4. Verification & Disbursement: The Welfare Board verifies the claims and disburses the benefits to eligible workers.

Practical Examples

• Example 1: Employee becoming eligible for benefit. Ramesh, a daily wage worker on a highway construction project in Uttar Pradesh, worked for 200 days in 2024. He registered with the UP BOCW Welfare Board. His daughter is getting married, and he successfully applied for and received financial assistance for her marriage from the Board.
• Example 2: Non-compliance by an employer. A construction company in Delhi failed to deduct and remit the BOCW cess for its workers for six months. The Labour Department conducted an inspection, found the company in violation, and imposed a penalty, including interest on the unpaid cess amount.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. Laws and regulations are subject to change, and it is recommended to consult with a legal professional for specific guidance.