Delhi realty will now pay higher labor cess as government revises calculation formula
Highlight
- Cess was calculated earlier in 2006 as per construction cost
- Now, Labor Cess will be increased as it is being calculated as per latest construction cost
- Labor Cess is collected by the government as a percentage of the cost of construction projects
Real estate developers and construction agencies in Delhi will now have to pay more labor cess as the city government has decided to modify the formula for calculating it, officials said on Wednesday.
The Labor Department has revised the formula for calculating the cess which was earlier done in 2006 according to the construction cost. Now, the labor cess will be increased as it is being calculated by the Central Public Works Department as per the latest construction cost fixed in 2021. , officials said.
Labor cess is collected by the government as a percentage of the cost of construction projects of Rs 10 lakh and above. The cess fund is spent on various welfare schemes for construction and other workers registered with the labor department.
Using the fund, the Delhi government had provided Rs 5,000 per construction worker as subsistence grant during the COVID-19 pandemic.
The Labor Department runs various schemes for the registered workers through the Delhi Building and Other Construction Workers Welfare Board.
The plans include financial grants to the next of kin of a registered employee in case of death, disability pension, funeral expenses, maternity benefits, financial assistance for education and marriage of children.
(with inputs from PTI)
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