Section 35: Constitution of Welfare Boards

Overview

Section 35 of the Code on Social Security, 2020, deals with the establishment of State Building and Other Construction Workers’ Welfare Boards. These Boards are central to delivering social security benefits to a highly vulnerable and often unorganized workforce. They are the primary mechanism for implementing various welfare schemes designed to improve the living and working conditions of construction workers. This section doesn’t directly deal with specific benefits like Provident Fund or ESI, but rather creates the institutional framework *through which* those and other benefits are administered and delivered.

Who is Covered?

• The schemes implemented by these Boards cover all building and other construction workers, both directly employed and those engaged through contractors. This includes workers involved in all types of construction – residential, commercial, roads, bridges, and more.
• Eligibility generally requires a worker to be engaged in building or construction work for a certain period (specifics are determined by individual State Governments based on rules framed under the Code) and to register with the Board. There may also be age-related criteria for certain schemes.

Benefits and Contributions

• The benefits provided through these Boards are varied and include provisions for safety, health, education, housing, and financial assistance. Specific benefits are determined by the respective State Government and may include financial assistance for children’s education, marriage grants, maternity benefits, disability benefits, and pensions.
• The Code establishes a system of cess (a special tax) levied on construction projects to fund these welfare schemes. The cess is typically a percentage of the cost of construction. Employers are responsible for collecting and remitting this cess to the Welfare Board. The exact percentage of the cess is determined by the Central Government. Employee contributions are *not* directly mandated under this section, but some schemes may require co-contribution. The government also contributes to the funds.

Procedure and Compliance

Here’s a simplified overview of the process:

1. Registration: Employers undertaking construction work exceeding a prescribed value (determined by the State Government) must register with the Welfare Board. Workers can also register individually.
2. Cess Collection: Employers collect the cess on construction projects and deposit it with the Welfare Board within a specified timeframe.
3. Benefit Claims: Eligible workers can apply for benefits by submitting the required documentation to the Welfare Board.
4. Board Administration: The Welfare Board manages the funds collected through the cess and disburses benefits according to the rules and schemes established by the State Government.

Practical Examples

• Example 1: Ramesh, a construction worker, has been working on various projects for the past three years and is registered with the State Building and Other Construction Workers’ Welfare Board. His daughter is now eligible for a scholarship under the Board’s education assistance scheme, helping to cover her school fees.
• Example 2: A construction company, ABC Builders, fails to remit the cess collected from its projects to the Welfare Board for six months. This constitutes non-compliance and can result in penalties, including fines and potential legal action by the Board.

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 qualified legal professional for specific guidance.