The implementation of the new labour codes formulated by the Union government by integrating 29 labour laws could lead to a fall in building cess collection, affecting the welfare activities of the Kerala Building Construction Workers Welfare Board, Labour Minister V.Sivankutty told the Assembly on Wednesday (February 12, 2025). Mr. Sivankutty said the labour codes will be implemented in the State in such a way as to protect the interests of the workers.
Mr. Sivankutty said that as per the existing norms building cess of 1% cess is levied for buildings with a construction cost of ₹10 lakh and above. However, under the labour codes, cess can be collected only for buildings with construction cost of ₹50 lakh or above, leading to a major shortfall in cess collection thus affecting the disbursal of pension and other benefits for the welfare board members. The labour codes will hence be implemented only considering Kerala’s peculiar situation, he said.
Cess adalats
According to the Minister, pension benefits up to September 2023 have been distributed, while other benefits up to March 31, 2024 have been distributed. To address the shortfall in building cess collection, the government has been organising cess adalats since 2021, providing opportunity to building owners to remit the building cess in five instalments. In 2021-22, an amount of ₹285.11 crore was collected through the adalats, while ₹378.18 crore was collected in 2022-23 and ₹385.53 crore was collected in 2023-24.
Since February 2024, local bodies have been given the powers to collect building cess with an aim to improve cess collection. Mr. Sivankutty was responding to questions raised by Congress MLAs C.R. Mahesh, A.P. Anilkumar, I.C. Balakrishnan and Roji M. John regarding delay in pension payment to the welfare board members.
Published - February 12, 2025 01:35 pm IST
