Labour Ministry transfers Cess Funds for the Construction Workers to fight against COVID-19

On March 24, 2020, the Ministry of Labour and Employment transferred funds to the account of construction workers in the backdrop of outbreak of COVID-19.

Highlights

The Labour Ministry has directed the state governments and Union Territories to transfer Rs 52,000 crores to the accounts of construction workers. Around 3.5 crore workers who were registered with the Construction Welfare Boards were benefitted under this.

Legislation

The step has been taken by the Ministry according to the ruling under Section 60 of Building and Other construction Workers Act, 1996 (BOCW Cess Act). Also, the Cess funds are allowed to be collected under BOCW Cess Act.

BOCW Cess Act

Under the act, the cess is collected from every employer working in construction work of Government or other Public Sector undertaking. It is collected by the state Government.

What is Cess?

In Colonial India, Cess was a taxation prefix. For instance, it was collected as irrigation-cess, education-cess, etc. In modern India, it refers to tax collected for a specific purpose.

Month: Current Affairs - March, 2020