Construction Workers To Get Access To Pan-Indian Card: A Masterstroke For Increasing Social Security Cover

The government's proposed introduction of a pan-Indian construction worker card under BOCW scheme is a major step towards enhancing social security coverage for workers in the construction industry

The provisions of the EPF Act are also applicable to workers in the building and construction industry. Under the ambit of this act, the employer and the employee have to contribute to the fund. ( Image Source :Getty )

By Satya Vyas

The government's proposed introduction of a pan-Indian construction worker card under the Building and Other Construction Workers (BOCW) scheme is a significant step towards enhancing social security coverage, particularly in terms of pensions, for workers in the construction industry. Currently, workers in this sector do not receive much benefits, which leaves them vulnerable and without adequate support.

To address this issue, the Ministry of Labour and Employment has undertaken the task of restructuring the BOCW scheme. One of the proposed changes includes the removal of the mandatory 90-day requirement, which often acts as a barrier for workers, especially migrant workers, to access the scheme’s benefits. Simplifying the registration and renewal processes is another crucial aspect of the restructuring, aimed at making it easier for construction workers to enrol and maintain their eligibility.

Presently, unorganised workers are subject to eShram, an initiative of the Ministry of Labor and Employment, which is aimed at building a registry of all the unorganised workers in India. It provides financial assistance and additional benefits to employees who encounter unfortunate events, commensurate with those that are provided by private companies. It also gives an insurance of up to Rs 2 lakh if the worker or labourer is a victim of an accident.

The provisions of the Employees’ Provident Fund Act are also applicable to workers in the building and construction industry. Under the ambit of this act, the employer and the employee (through his employer) have to contribute to the fund. A Universal Account Number is allotted to the worker, to ensure accurate identification and to overcome the issue of casual employment. As specified by the Employees’ Provident Fund Organisation and reiterated by the Delhi High Court, an employer is duty bound to make EPF contributions independent of all logistical hurdles relating to the release of funds.

Although these initiatives have provided assistance to construction workers, the introduction of a pan-Indian card will be a greater boon. However, one of the challenges faced by construction workers, especially those who migrate across states, is the varying eligibility requirements for the BOCW scheme. Each state implements its own criteria, making it difficult for migrant workers to navigate and enrol in the scheme, even if they are eligible. Addressing this issue is crucial to ensure that the benefits of the pan-India construction worker card reach all deserving individuals, regardless of their location or migration status.

It's worth noting that the BOCW scheme is funded by a 1 per cent cess on construction costs, which is levied by all states. Despite the substantial funds raised, with over Rs 78,000 crore collected so far, there exists a significant amount of over Rs 40,000 crore in unused funds within the BOCW cess scheme. Optimising the utilisation of these funds and ensuring their effective allocation towards the welfare of construction workers should be a priority for the authorities involved.

In conclusion, the introduction of the pan-Indian construction worker card is a promising development that aims to enhance social security coverage, including pensions, for workers in the construction industry. Through the restructuring of the BOCW scheme, removal of barriers to entry, and simplified processes, the government aims to extend the benefits to all construction workers, including migrant workers. This, coupled with the efforts of construction tech start-ups and the proper utilisation of the BOCW cess funds, holds the potential to significantly improve the financial stability and well-being of workers in this vital sector.

The writer is the CEO and founder at ProjectHero, a construction tech start-up.

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