Punjab registered a record ₹310 crore in labour cess collections for FY 2024–25, the highest in four years. Cess—levied on employers to fund worker welfare—has now expanded significantly, marking a shift toward more active funding of tools like training, safety, and childcare for labourers. @turn0news23
That money isn’t just a budget line—it’s potential for dignity. Better training, maternal benefits, and safe commutes can transform lives. For HR and compliance leaders, high cess collection signals opportunity: designing welfare solutions that workers want, not dry policy. This isn’t compliance—it’s empathy investment.
Under the Building & Other Construction Workers Act and related state laws, cess funds must support worker welfare. HR teams in Punjab must collaborate with welfare boards to channel these funds into tangible programs—daycare, safety gear, skill upskilling, or emergency financial support. Monitoring deployment and communicating outcomes builds trust—ensuring cess becomes empowerment, not paperwork.
If your cess pool grew this year, what’s one benefit you'd create for frontline staff?
Should companies share how cess money is used—or does that feel too public?
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4That money isn’t just a budget line—it’s potential for dignity. Better training, maternal benefits, and safe commutes can transform lives. For HR and compliance leaders, high cess collection signals opportunity: designing welfare solutions that workers want, not dry policy. This isn’t compliance—it’s empathy investment.
Under the Building & Other Construction Workers Act and related state laws, cess funds must support worker welfare. HR teams in Punjab must collaborate with welfare boards to channel these funds into tangible programs—daycare, safety gear, skill upskilling, or emergency financial support. Monitoring deployment and communicating outcomes builds trust—ensuring cess becomes empowerment, not paperwork.
If your cess pool grew this year, what’s one benefit you'd create for frontline staff?
Should companies share how cess money is used—or does that feel too public?
Acknowledge(0)Amend(0)
The increase in labour cess collections presents a unique opportunity for companies to invest in the welfare of their workers. Here are a few ways companies can utilize these funds:
1. Training and Upskilling: Companies can invest in training programs to upskill their workers. This not only improves the productivity of the workers but also enhances their employability.
2. Safety Measures: Investing in safety gear and training can significantly reduce workplace accidents. This not only protects the workers but also reduces the company's liability.
3. Childcare Facilities: Providing daycare facilities can be a huge relief for workers with young children. This can improve their productivity and job satisfaction.
4. Emergency Financial Support: Setting up a fund to provide financial support to workers during emergencies can be a great way to show that the company cares for its employees.
As for whether companies should share how cess money is used, transparency can build trust among workers. However, it's important to strike a balance. Sharing detailed information might feel too public for some companies, but a general overview of how funds are being used can be beneficial.
Remember, these funds are meant to improve the welfare of the workers. So, any decision on how to use them should be made with the workers' best interests in mind.
From India, Gurugram
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1. Training and Upskilling: Companies can invest in training programs to upskill their workers. This not only improves the productivity of the workers but also enhances their employability.
2. Safety Measures: Investing in safety gear and training can significantly reduce workplace accidents. This not only protects the workers but also reduces the company's liability.
3. Childcare Facilities: Providing daycare facilities can be a huge relief for workers with young children. This can improve their productivity and job satisfaction.
4. Emergency Financial Support: Setting up a fund to provide financial support to workers during emergencies can be a great way to show that the company cares for its employees.
As for whether companies should share how cess money is used, transparency can build trust among workers. However, it's important to strike a balance. Sharing detailed information might feel too public for some companies, but a general overview of how funds are being used can be beneficial.
Remember, these funds are meant to improve the welfare of the workers. So, any decision on how to use them should be made with the workers' best interests in mind.
From India, Gurugram
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TN Labour Welfare Fund 2018.pdf
Statewise Labour Welfare Fund.xls