Chapter XI of the Code on Social Security replaced the BOCW Welfare Cess Act, 1996.
- Rate: not less than 1% and not more than 2% of the cost of construction, as notified. It has stood at 1%.
- Cost of construction: excludes the cost of land and any compensation paid under the employees' compensation law.
- Who pays: the employer (including the owner for private construction above the threshold). Many States collect it at the time of plan approval or deduct it from contractors' bills.
- Self-assessment: the employer assesses the cess and pays it to the State BOCW board within the time prescribed.
- Delay: interest (2% a month under the earlier Act) and a penalty of up to the amount of cess.
- Use: welfare of building workers registered with the State board, such as pension, accident cover, maternity, education and housing.
Use the cess calculator to work out the cess and the interest on delay.
Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.