There are no mandatory pension benefits in the final version of the Centre’s model construction workers’ welfare scheme despite earlier suggestions that 20% of the construction cess fund be set aside for retired workers.
The final version of the scheme, which was released last week, simply notes that: “Considering that pension would constitute a permanent liability which the States may not be able to sustain in the long term, the State Welfare Boards may formulate pension schemes depending upon their financial capacity.”
The model scheme was formulated in response to the Supreme Court’s March 2018 order in a case filed by the National Campaign Committee for Central Legislation on Construction Labour (NCC-CL). The NCC-CL now plans to file a review petition in the case which was closed on October 4, asking the apex court to continue monitoring government actions on the issue.
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“The three main areas which the cess fund is supposed to be used for are old age security, health benefits and children’s education,” said Subhash Bhatnagar, NCC-CL coordinator. “How can the [Central] government... say there is no money for pensions?”
He said the model scheme — which does emphasise health and life insurance, as well as scholarships for the children of construction workers — also allows for funding of skill development institutes and temporary housing. “That will eat up the money [from the cess fund]. This is money specifically for workers; it should go only to them,” he said.