Social security net for state construction workers

In a move that is likely to benefit more than 10 lakh workers engaged in the construction sector in the state, the Orissa government has started a social security scheme for them.

The scheme is implemented by the ‘Building and other construction workers welfare Board’ headed by the secretary in the labour and employment department.

The benefits of the scheme include accident benefit, pension to beneficiaries after completion of 60 years, family pension, invalid pension, death relief, group insurance, medical insurance for treatment of major ailments, maternity benefit to the women, marriage benefits and financial assistance for the education of the children of the beneficiaries.

This will be applicable to every establishment which employs or has employed 10 or more workers on any day of the preceding 12 months, in any building or other construction works However, it will not be applicable to workers engaged by the project executants except in ports, factories in production and mines.

The workers in the unorganised sectors like construction, alteration, repair, maintenance, demolition of or in relation to the buildings, roads, railways, airfields, irrigation, drainage, embankment, generation, transmission and distribution of power, water works, oil and gas installation, electric lines, wireless, radio, television will get this benefit.

Sources said, the beneficiaries will be given compensation for wage loss due to admission in a hospital at the rate of Rs 200 for first five days and Rs 20 per day afterwards subject to a ceiling of Rs 2000.While the beneficiary is entitled for medicine expenses up to Rs 2000, in case of operation, the amount will be Rs 15,000.

A worker will be given Rs 15,000 for normal disability and Rs 30,000 in case of normal death. However, the compensation amount increases to Rs 1.5 lakh if he dies in an accident and Rs 75,000 in case of accidental disability. The women beneficiaries can avail maternal benefit of Rs 1500 in each case limited to two children.

A worker completing 5 years with minimum 90 days of work per year will get minimum Rs 150 pension per month. It will increase by Rs 10 for every additional year of service. The Life Insurance Corporation (LIC) will cover insurance, death, disability and children’s education, sources added.

To be included in this scheme, the beneficiaries will be issued an identity card and the worker will have to be registered with the District Labour Officer (DLO).

In accordance with the building and other construction workers welfare act, 1996, the state government has started collection of 1 percent cess on the cost of the construction incurred by an employer or builder, excluding the cost of the land. The state government expects to collect Rs 100 crore per annum from the cess and this amount will be utilised for meeting expenditure associated with the scheme.