Ministry of Labour & Employment issues draft outline of Model Welfare Scheme for Building & Other Construction Workers

May 14, 2018 | by Avantis RegTech Legal Research Team

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General Compliance

Ministry of Labour & Employment has issued drat outline of model Welfare Scheme for Building & Other Construction (BOC) Workers for consideration by Committee Pursuant to the directions of the Hon‘ble Supreme Court contained in the Judgment dated March 19, 2018 in WP(C) No. 3180f 2006.

 The components of the Scheme are outlined below:-

(i)        Life and disability Cover- It is proposed that 50% of the total contribution of premium for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) amounting to Rs.171 per worker per annum will be borne by the State Welfare Board while the remaining 50% will be borne by the Central Government under the converged PMJJBY/PMSBY Schemes. These schemes provide coverage of Rs. 2 lakhs in case of natural death and Rs.4 lakhs in case of accidental death, besides disabilities benefits as per this scheme.

(ii)      Health and Maternity Cover- Hospital expenses up to Rs.5 lakhs per family will be borne by the Board. This could be done directly or through insurance companies as determined by the National Health Protection Scheme. There will be reimbursement of expenses up to Rs.2 lakh or so for serious diseases like cancer, kidney failure etc. For female construction Workers minimum wages for 26 weeks to be provided for up to 2 pregnancies and for the wives of construction workers medical expenses up to a certain prescribed limit may be provided by the State Welfare Board.

(iii)    Education- Scholarships at the rate of Rs.3000 per year for 2 children of the workers studying in class 9 to 12 and up to Rs.12000 per year for children of workers studying in it ITI’s, vocational courses, graduation and professional courses etc.

(iv)     Housing- Depending upon the financial capacity of the Board loans/advances may be provided to the worker's subject to the ceiling of 10% of the Cess collected in a particular year. It would be more advisable to construct transit/accommodation for the migrant construction workers at sites provided by the urban local bodies/State Governments, and run by these bodies on rental basis. A ceiling of 10% of the Cess collected in a particular year may be spent on such accommodation.

(v)       Skill Development- Skill development should be conducted not only for the workers but also for their dependents. In case of workers minimum wages should be paid while attending the training programme while for the dependents stipend may be prescribed as per norms of the Ministry of Skill Development & entrepreneurship or the State Skill Development Mission.


(vi)     Pension- Pension of Rs. 1000 per month to be provided to the construction workers after they have attained the age of 60 years, provided they have been registered with the board for at least 5 years. However, this will need to be debated with the States as many states may not have the financial capacity to fund such a scheme.


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