Modified Draft Model Welfare Scheme for Building and Other Construction Workers

Jul 24, 2018 | by Avantis RegTech Legal Research Team

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The Ministry of Labour and Employment vide notification dated July 13, 2018 has modified Draft on Welfare Scheme for Building and Other Construction Workers

Salient Features of the draft are following

·         Life and disability cover:

The State Welfare Board should provide minimum coverage of Rs. 4 Lakh, in case of accidental death, and Rs. 2 Lakh in the event of natural death to the dependent(s) of the deceased beneficiary, besides disability benefits

Alternately, the State Welfare Board may cover BOC workers between 18 years and 50 years under Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana(PMSBY), by making payment of 50 per cent of the total contribution of premium amounting to Rs.171 per worker per annum, as the remaining 50 per cent 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 disability benefits as per this scheme.

 Compensation should be disbursed in a definite time frame not exceeding 60 days from the date of death of the beneficiary.



·         Health and Maternity Cover

A suitable scheme should be formulated to extend health & maternity benefits to BOC workers and their families through ESIC. The State BOC Welfare Boards may make the contributions as required to bring BOC workers under the ESIC fold. Till the time such a scheme is formulated and modalities worked out thereof.

The following benefits should be provided to BOC workers:

(i)           Reimbursement of expenses up to a prescribed limit in case of major diseases as listed by the Ministry of Health & Family Welfare.

(ii)         Paid maternity leave to registered construction workers ranging from 90 days to 26 weeks for up to two deliveries

(iii)       Rs.6000/-per delivery for up to two deliveries to the wife of the registered construction workers, which will be in addition to any other benefit received from any Government Scheme in this regard.


·         Education

A minimum financial assistance for education of wards of the beneficiaries should be given at the following rates per child per annum:

b.      Class 1 to 5 at the rate of Rs. 1800

c.       Class 6 to 10 at the rate of Rs 2400,

d.      Class 11 to 12 at the rate of Rs 3,000

e.      Graduation courses at the rate of Rs 10,000,

f.        Post-Graduation courses at the rate of Rs 12,000

g.      ITI/Vocational course/Professional Course at the rate equivalent to annual fee of Government institutes/colleges.

It should be ensured that the beneficiary ward maintains 50% of the annual attendance in the class.


·         Housing

Section 60 direction of the Central Government dated 11.7.17 in regard to provision of transit accommodation/hostel/labour shed/night shelter etc. are reiterated, the salient features of which are quoted below:

(A) The BOC workers are predominantly migratory who move from one place to other in search of work. During the period of transit or until they find work, they face great hardship due to lack of basic facilities like transit shelters, toilets etc., in and around the area common for their gathering in a city or metro.

(B) In order to mitigate the hardship that a BOC worker faces, the States are advised to take proactive steps to facilitate transit accommodation/labour shed cum night shelter, mobile toilets and mobile crèches to BOC workers in the areas of their concentration prior to their finding work.

(C) While incurring expenditure on such facilities due care has to be taken so as to ensure that sufficient funds remain available for providing social security to BOC workers on a sustained basis, which is the first and foremost objective of the BOCW Act. Social security benefits will hold precedence over all other existing benefits and that only after meeting these priority expenses, any balance of fund may be utilised for giving additional benefits under section 22 (h) of the Act.


·         Skill Development

During the training period the worker should be given financial assistance in the form of stipend & training expenses and such training may be limited to once in 3 years. Skill development may also be provided to the dependents of a BOC worker but that may be without any stipend. A cap of 10% of cess collected in a financial year may be kept on the expenditure under this provision.

It is clarified that those BOC workers availing benefits from ESIC and EPFO through matching contributions from employer and employee (i.e. the organized workers), will not be entitled to such benefits under the welfare schemes under the BOCW Act, 1996.


The draft Model Scheme for welfare of Building and Other Construction Workers is placed on the official website of the Ministry of Labour and Employment for perusal and comments of the general public and stakeholders. It is requested that the suggestions/ comments/ inputs may be submitted on or before August 10, 2018 at E-mail IDs: [email protected], [email protected], [email protected], [email protected].




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