Construction activities to attract 1% cess in Punjab

The Punjab government has decided to levy 1% cess on cost of construction of building in the state.

It has also constituted the Punjab Building and other Construction Workers Welfare Board and will provide additional resources for the Board, by formulating a Building and other Construction Workers Welfare Fund, Tikshan Sud, labour minister said on Monday.

The cess will be collected from every employer either by deduction of cess at source in relation to building and other construction work of government or PSU, or by advanced collection by cess through a local authority where approval of building or construction was granted or employer may pay in advance an amount of cess calculated on the basis of estimated cost of construction along with the notice of commencement of work.

The Punjab government has introduced these steps to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures. These steps have been taken in order to provide and monitor the social security schemes and welfare measures for the benefit of building and other construction workers.

After raising the minimum wages by 21% of scheduled employments, this was second major labour welfare step taken by the government, Sud said.