BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE BOARDSCentral

Section 24 of The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

(1)There shall be constituted by a Board a fund to be called the Building and Other Construction Workers' Welfare Fund and there shall be credited thereto--
1. (a)any grants and loans made to the Board by the Central Government under section 23;
2. (b)all contributions made by the beneficiaries;
3. (c)all sums received by the Board from such other sources as may be decided by the Central Government.
(2)The Fund shall be applied for meeting--
1. (a)expenses of the Board in the discharge of its functions under section 22; and
2. (b)salaries, allowances and other remuneration of the members, officers and other employees of the Board;
3. (c)expenses on objects and for purposes authorised by this Act.
(3)No Board shall, in any financial year, incur expenses towards salaries, allowances and other remuneration to its members, officers and other employees and for meeting the other administrative expenses exceeding five per cent. of its total expenses during that financial year.

Summary

Every Board must set up a specific Welfare Fund.
The Fund gets money from central grants, worker contributions, and other sources approved by the government.
The Fund pays for worker benefits listed in Section 22 and for the Board's own running costs.
Money from the Fund is also used to pay salaries and allowances to Board members and staff.
There is a strict limit on administrative spending: it cannot exceed five percent of total yearly expenses.
This limit ensures most of the money goes to the workers rather than office costs.

Practical examples

1A Board collects 100 lakhs in a year. Under Section 24, they can only spend up to 5 lakhs on office rent, electricity, and staff salaries. The rest must be available for worker welfare.

2The Welfare Fund receives 50 lakhs from worker monthly contributions and another 50 lakhs as a grant from the Central Government. All 100 lakhs are put into the same Fund under Section 24.

FAQ

1. What sources of money go into the Welfare Fund under Section 24 of the Construction Workers Act 1996?

Under Section 24 of the Building and Other Construction Workers Act 1996, the fund includes Central Government grants, worker contributions, and other sources decided by the Central Government.

2. Can the Welfare Fund be used for Board staff salaries under the Construction Workers Act 1996?

Yes, Section 24 of the Building and Other Construction Workers Act 1996 allows the fund to be used for salaries and allowances of Board members and employees.

3. Is there a limit on how much the Board can spend on its own administration under Section 24 of the Act?

Yes, Section 24 of the Building and Other Construction Workers Act 1996 caps administrative and salary expenses at five percent of the total expenses for that financial year.

Test yourself

Q1.Under Section 24 of The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, what is the maximum percentage of total expenses allowed for administrative costs?

Q2.Which of these is credited to the Fund under Section 24 of the Building and Other Construction Workers Act 1996?

Q3.How does Section 24 of the Building and Other Construction Workers Act 1996 relate to Section 22?

Q4.Who decides the "other sources" of money that can be received by the Board under Section 24 of the Construction Workers Act 1996?

23PreviousSection 23 Grants and loans by the Central Government.25NextSection 25 Budget.

←Section 23 Section 25→