Kerala collected Rs 2,178.28 crore as building construction cess in five years; workers await Rs 840 crore pension arrears

Idukki: Kerala govt collected Rs 2,178.28 crore as building and other construction workers welfare cess in the last five years while pension arrears amounting to nearly Rs 840 crore remain unpaid to construction workers across the state.According to information obtained through RTI Act by Kasaragod resident A S Mohammed Ashraf, around 20.59 lakh workers were registered with the Building and Other Construction Workers Welfare Board as of April 30, 2026. Welfare benefits, including pensions, are funded from the cess collected by the board. Despite the substantial revenue generated through cess collection, nearly 4.15 lakh pensioners have not received their full pension payments for the past 12 months.

The total pension arrears alone are estimated at around Rs 840 crore.The RTI reply also states that the welfare board had a closing balance of Rs 56.90 crore as of March 31, 2026. While officials maintain that cess funds have not been diverted for other purposes, questions remain regarding the utilisation of the accumulated funds when pension payments continue to be delayed.Under the existing provisions of the Building and Other Construction WorkersWelfare Cess Act, 1986, and the corresponding 1998 Rules, a cess of 1% is levied on construction projects costing more than Rs 10 lakh.

Meanwhile, a recent amendment introduced by the central govt under Section 2(6) of the Social Security Code has significantly increased the exemption limit for individual residential buildings. Under the revised provisions, construction cess can now be levied only on residential projects with a construction cost of Rs 50 lakh or more.Despite a substantial year-on-year increase in cess revenue, the welfare boardcontinues to face a shortage of funds. At the same time, the board has specifically clarified in its reply under RTI Act that no money from the construction workers’ welfare fund has been diverted or spent by the govt for any other purpose.