Modified Draft Model Welfare Scheme for Building and Other Construction Workers

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Ministry of Labour & Employment has issued modified draft outline of Welfare Scheme for Building & Other Construction (BOC) Workers, pursuant to the directions of the Hon’ble Supreme Court dated 4th July, 2018 subsequent to the directions contained in the Judgment dated 19th March, 2018 and 7th March, 2018.


The Salient Features of Scheme

Life and disability cover- The State Welfare Board should provide minimum coverage of Rs. 4 Lakh, in case of accidental death, and Rs. 2 Lakh in the event of natural death to the dependent(s) of the deceased beneficiary, besides disability benefits.

Alternately, the State Welfare Board may cover BOC workers between 18 years and 50 years under Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) and Pradhan Mantri Suraksha  Bima Yojana (PMSBY), by making payment of 50 per cent of the total contribution of premium amounting to Rs.171 per worker per annum, as the remaining 50 per cent will be borne by the Central Government under the converged PMJJBY/PMSBY Schemes.

Health and Maternity Cover- A suitable scheme should be formulated to extend health & maternity benefits to BOC workers and their families through ESIC.

Till the time such a scheme is formulated and modalities worked out thereof following benefits should be provided to BOC workers:

  • Reimbursement of expenses up to a prescribed limit in case of major diseases as listed by the Ministry of Health & Family Welfare.
  • Paid maternity leave to registered construction workers ranging from 90 days to 26 weeks for up to two deliveries.
  • Rs.6000/-per delivery for up to two deliveries to the wife of the registered construction workers, which will be in addition to any other benefit received from any Government Scheme in this regard.

Education-  Scholarships for education of wards of the beneficiaries at the following rates per child per annum.

  • Class 1 to 5 at the rate of Rs. 1800
  • Class 6 to 10 at the rate of Rs 2400
  • Class 11 to 12 at the rate of Rs 3,000
  • Graduation courses at the rate of Rs 10,000
  • Post-Graduation courses at the rate of Rs 12,000
  • ITI/Vocational course/Professional Course at the rate equivalent to annual fee of Govt institutes/colleges.

Housing-  In order to mitigate the hardship that a BOC worker faces, the States are advised to take proactive steps to facilitate transit accommodation/labour shed cum night shelter, mobile toilets and mobile crèches to BOC workers in the areas of their concentration prior to their finding work.

Skill development- During training period the worker should be given financial assistance in the form of stipend & training expenses and such training may be limited to once in 3 years. Skill development may also be provided to the dependents of a BOC worker but that may be without any stipend.  A cap of 10% of cess collected in a financial year may be kept on the expenditure under this provision.

Pension- Pension of Rs. 1000 per month to be provided to the construction workers after they have attained the age of 60 years.

The sub-committee constituted for this purpose would also explore the feasibility of extending the coverage of Atal Pension Yojana or similar scheme suitable to BOC workers in consultation with PFRDA while keeping in mind its sustainability in the long run e.g. for BOC workers in the age group of 18-40 years, the State Welfare Board may pay 50%of the contribution to the Atal Pension Yojana scheme, subject to a maximum of Rs.1000 per month. The remaining 50% contribution will have to be given by the worker.

It is also clarified that those BOC workers availing benefits from ESIC and EPFO through matching contributions from employer and employee (i.e. the organized workers), will not be entitled to such benefits under the welfare schemes under the BOCW Act, 1996.

Modified Draft Model Welfare Scheme for Building and Other Construction Workers Attached– Draft Model Welfare Scheme

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