Understanding the 1% Labor Welfare Fund Deposit for New Projects: Is It Necessary and How Is It Used?

Labor Welfare Fund Requirement for New Projects

Please suggest whether it is necessary to deposit 1% in the labor welfare fund under the Contract Labor Act if the construction cost is above Rs. 10 lakh. What is the utilization of this fund? Please also suggest the procedure.

Thank you!

Regards,

Please clarify whether the project work will be completed in two years and if our organization will complete it in two to three phases. In that case, how much amount needs to be deposited? Will the cess be deposited based on the phase-wise cost of construction or the total cost?

Please advise.

Please go through Rule 4(1) & 4(2) of the BOCW Welfare Cess Rules, 1998 for your query.

Regards,
R.N.Khola