- The cess calculation was earlier done as per construction cost in 2006
- Now, the labour cess will be hiked as it is being calculated as per the latest construction cost
- The labour cess is collected by the government as one percent of cost of construction projects
Real estate developers and construction agencies in Delhi will now have to pay higher amount of labour cess as the city government has decided to revise the formula for its calculation, officials said on Wednesday.
The labour department has revised the formula for the cess calculation that was earlier done as per construction cost in 2006. Now, the labour cess will be hiked as it is being calculated as per the latest construction cost fixed by the Central Public Works Department in 2021, the officials said.
The labour cess is collected by the government as one percent of cost of construction projects worth Rs 10 lakh and above. The cess fund is spent on various welfare schemes for construction and other workers registered with the labour department.
Using the fund, the Delhi government had provided Rs 5,000 per construction worker as subsistence grant during the COVID-19 pandemic.
The labour department through the Delhi Building And Other Construction Workers Welfare Board runs various schemes for the registered workers.
The schemes include financial grant to kin of a registered worker in case of death, disability pension, funeral expense, maternity benefit, financial assistance for education and marriage of children, among others.
(With inputs from PTI)