Build house, pay 1% cess

Build house, pay 1% cess
The Times of India

Bangalore: If you’re constructing a house or a building whose cost is Rs 10 lakh or more, be prepared to pay 1% of the total cost as cess to the state government from Nov. 1.

The cess will go to Welfare Board for Building and Other Construction Workers, constituted by government. The fund will be used for workers’ safety, health and old-age pension. To avail this, the workers should register with the Board.

Labour minister Iqbal Ansari told reporters here on Tuesday the cess will apply to all constructions, including those of the government. The draft cess rules have been issued; citizens can write in their objections before Sept. 19. The cess comes into force on Nov. 1.

The Board will be governed by the Building and Other Construction Workers (Regulation of Employment and Conditions of Service), Karnataka Rules, 2006. The Centre brought an Act to this effect and wanted the states to frame the rules.

Tamil Nadu pioneered it in 1986 followed by Kerala 12 years later. Karnataka did frame the rules in 1996, but had not acted upon it.

The 1% cess will have to be remitted to the authority sanctioning the building plan through a demand draft drawn in the name of secretary, Construction Workers’ Welfare Board.

“It’s estimated that over 14 lakh labourers are in Karnataka and enforcement of this rules will extend the benefit of social security to these workers,’’ Ansari maintained.

How it’s utilised

n Workers in the 18-60 age group, with five years’ work, should pay Rs 25 to the board to become a member; subsequent monthly contribution is Rs 20 n On turning 60 years, they will get a monthly pension of Rs 200; disabled workers get Rs 150 a month n Assistance of Rs 5,000 to buy tools; assistance of Rs 50,000 for purchase or construction of a house n Assistance of Rs 4,000 for delivery of a child by a registered woman construction worker, restricted to two children n Assistance of Rs 1 lakh to be beneficiary in case of an accident resulting in death or permanent disability n Rs 2,000 to meet the funeral expenses of a registered worker