Governance / Centre Urges States to Optimise Cess Funds for Workers’ Welfare

Mumbai, Sept 11: The Union government has called on states to make better use of cess funds collected under the Building and Other Construction Workers (BOCW) framework, stressing that these resources must directly benefit workers’ welfare and social security.

Union Labour and Employment Minister Mansukh Mandaviya, addressing the National Conference on BOCW in Mumbai, urged states to conduct a detailed assessment of cess fund utilisation, identify gaps, and explore new avenues for effective deployment. He emphasised that the long‑term welfare of workers should remain the guiding principle.

Labour Codes and Implementation

Mandaviya also pressed states to review the impact of the Labour Codes after one year of implementation, identifying areas where execution needs strengthening. He called for workshops and orientation programmes for labour law practitioners to ensure the Codes are implemented in both letter and spirit.

Expanding Social Security

Highlighting the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), Mandaviya said the scheme is crucial for expanding social security coverage to new entrants in the workforce. He urged states to hold focused workshops with industry stakeholders to raise awareness and ensure eligible workers benefit from the programme.

Best Practices and Global Opportunities

The minister stressed the importance of sharing best practices among states and ensuring optimum use of BOCW funds. He also underlined the need to prepare India’s workforce for global opportunities, noting the rising demand for skilled and semi‑skilled workers. Mandaviya suggested exploring pension support and measures that enhance dignity and self‑respect for workers.

Labour Mobility

Calling for deliberations on international labour mobility, Mandaviya said coordinated efforts by the Centre and states are needed to build a comprehensive platform supported by financial and digital infrastructure. Such a system, he noted, would allow Indian workers to access global opportunities while boosting India’s credibility abroad.

Labour and Employment Secretary Dr Chandra Bhushan Kumar highlighted that India has over 7 crore construction workers and a cess corpus of about Rs77,000 crore. He said the conference provides a vital platform to share best practices and strengthen industry partnerships.