Pension Planned for 8.5 million Construction Workers

Pension Planned for 8.5 million Construction Workers
Move guaranteeing social security requires update of BOCW Act, 1996; ministry banking on e-Shram for data
The government is set to introduce a pension plan for approximately 8.5 million registered construction workers across India, providing a social security safety net for a segment often deprived of employment stability. This plan aims to cover construction workers of all types, from organized labourers to the highly mobile and informal workforce.
The Ministry of Labour is advocating to amend the Building and Other Construction Workers (BOCW) Act of 1996. The update aims to align the act with current industry practices, considering the fast-changing dynamics and the complexities of migrant labour, who form a large portion of the workforce.
This initiative, funded through the ₹76,000 crore building cess collected under the BOCW scheme, could significantly enhance the welfare of construction workers, particularly in offering pensions and financial aid.

Key Challenges in Implementation
•    States currently follow different eligibility criteria under the BOCW scheme, making it difficult for migrant workers to enroll consistently across regions.
•    Lack of a unified digital record has limited the reach and effectiveness of benefits, leaving many workers unaccounted for in state welfare systems.
The ministry aims to leverage data from the e-Shram portal to streamline and facilitate the pension benefits and ensure more extensive coverage for this workforce. With e-Shram, workers registered across states can be monitored and supported consistently, irrespective of their region of work.

Future Secure: Proposed Reforms
1.    Introduction of pan-India portability for workers to access benefits regardless of location.
2.    More unified schemes targeting both organized and informal workers in the sector.
A senior official commented, “Our goal is to create a sustainable model for these workers, ensuring they are not left out of the welfare loop.” The ministry also plans to coordinate with state governments to harmonize the varied eligibility criteria, aiming for a comprehensive support framework for construction labourers nationwide.