National News

1 percent Labour Welfare Cess

May 20 , 2026 15 hrs 0 min 19 0

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.