Saturday, 6 June 2015

Labour Ministry may take control of construction cess pool

The Ministry of Labour & Employment is likely to take control of the estimated ₹20,000 crore cess pool collected through real estate developers in the last couple of years for the welfare of construction workers.

Labour Secretary Shankar Aggarwal said on Thursday that the Ministry is working out a solution in consultation with State governments since the estimated amount is hardly being utilised for the intended purpose. He was addressing a seminar on “Compliance of Labour Legislations-Issues of Concern”, organised by the PHD Chamber of Commerce and Industry here.

On a suggestion that a part of the cess should be used as construction workers’ contribution toward provident fund, since such workers are poor and cannot make their mandatory contribution,  the Secretary said that the government would “favourably” consider it.

According to Aggarwal, close to ₹20,000 crore is lying idle in the cess pool, which is currently managed and controlled by State governments.

“With its repatriation to the Central pool, it could be better utilised for the benefits of the children of construction workers’ education and community services, as also give them entitlement for social security in terms of PF facility, a chamber release said.

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