IDUKKI: The Kerala government has gathered Rs 2,178.28 crore from the building and other construction workers’ welfare cess over the past five years. However, pension arrears nearing Rs 840 crore remain unpaid to construction workers statewide.
As per information obtained via the RTI Act by Kasaragod resident A S Mohammed Ashraf, approximately 20.59 lakh workers were registered with the Building and Other Construction Workers Welfare Board as of April 30, 2026. The welfare benefits, including pensions, are derived from the cess collected by the board. In spite of the significant revenue generated, nearly 4.15 lakh pensioners have not received their full pension payments in the last year, with total pension arrears estimated around Rs 840 crore.
The RTI response also indicates that the welfare board had a closing balance of Rs 56.90 crore as of March 31, 2026. Although officials assert that cess funds have not been misallocated, concerns persist about how these accumulated funds are being utilized while pension payments are delayed.
According to the Building and Other Construction Workers Welfare Cess Act of 1986 and its 1998 Rules, a 1% cess is levied on construction projects exceeding Rs 10 lakh.
Recently, an amendment by the central government under Section 2(6) of the Social Security Code has markedly raised the exemption limit for individual residential buildings. Under the new rules, construction cess now applies only to residential projects with costs of Rs 50 lakh or more.
Despite a year-over-year increase in cess revenue, the welfare board continues to face funding shortages. The board has clarified in its RTI response that no funds from the construction workers’ welfare account have been diverted or used by the government for any alternate purposes.
