HUBBALLI: Shobha Karandlaje, Union Minister of State for Labour and Employment, has accused several state governments, including Karnataka, of misusing funds collected from the labour welfare cess for other purposes.
Speaking at a Labour Day event in Hubballi organized by the Employees’ State Insurance Corporation, she announced that the Central Government plans to integrate this labour cess into a formal social security system. This aims to ensure that the funds are converted directly into pensions and ESIC healthcare benefits for construction workers.
Karandlaje criticized some state governments for spending the welfare funds on unrelated activities, such as conducting health camps and distributing kits to process claims.
She highlighted the Union Government’s consolidation of 29 labour laws into four Labour Codes, which include the Code on Social Security and the Occupational Safety, Health and Working Conditions Code. The goal of this reform is to simplify compliance, modernize outdated regulations, and create a more efficient framework that facilitates business operations while protecting workers’ rights and welfare.
A meeting is scheduled for May 5 with the labour ministers from all states to discuss the framing of the law, aiming to benefit both workers and employers once enacted.
The event was also attended by Hubballi-Dharwad Central MLA Mahesh Tenginakai and officials from the labour and ESIC departments.
