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1 percent Labour Welfare Cess
May 20 , 2026
15 hrs 0 min
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- The Government of India notified a 1% welfare cess on construction costs under the Code on Social Security, 2020.
- The cess is imposed on the total construction cost paid by employers for building and construction works.
- Individuals constructing houses costing less than ₹50 lakh are exempt from the cess from 21 November 2025.
- The cess funds are used for welfare schemes such as health support, insurance, financial aid, and education benefits for construction workers.
- The welfare funds are managed by Building and Other Construction Workers Welfare Boards in States and Union Territories.
- Section 100(1) of the Code on Social Security, 2020, provides the legal basis for the construction welfare cess.
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