Constitution of State Building Workers’ Welfare Boards
Section 7 of the Code on Social Security, 2020 deals with constitution of State Building Workers’ Welfare Boards. Every State Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the................(name of the State) Building and Other Construction Workers' Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it The Act was enacted on 28 Sep 2020.
(1) Every State Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the................(name of the State) Building and Other Construction Workers' Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it under this section and Chapter VIII.
(2) The Building Workers' Welfare Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued.
(3) The Building Workers' Welfare Board shall consist of a chairperson to be nominated by the State Government, one member to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State Government:
Provided that the Building Workers' Welfare Board shall include an equal number of members representing the State Government, the employers and the building workers and that at least one member of the Board shall be a woman.
(4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Building Workers' Welfare Board, and the manner of filling of casual vacancies of the members of the Building Workers' Welfare Board, shall be such as may be prescribed by the State Government.
(5) (a) The Building Workers' Welfare Board shall appoint a Secretary and such officers and employees as it considers necessary for the efficient discharge of its functions under this Code.
(b) The Secretary of the Building Workers' Welfare Board shall be its chief executive officer.
(c) The terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the Building Workers' Welfare Board shall be such as may be prescribed by the State Government.
(6) The Building Workers' Welfare Board shall perform the following functions, namely:—
(a) provide death and disability benefits to a beneficiary or his dependants;
(b) make payment of pension to the beneficiaries who have completed the age of sixty years;
(c) pay such amount in connection with premium for Group Insurance Scheme of the beneficiaries as may be prescribed by the appropriate Government;
(d) frame educational schemes for the benefit of children of the beneficiaries as may be prescribed by the appropriate Government;
(e) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed by the appropriate Government;
(f) make payment of maternity benefit to the beneficiaries;
(g) frame skill development and awareness schemes for the beneficiaries;
(h) provide transit accommodation or hostel facility to the beneficiaries;
(i) formulation of any other welfare scheme for the building worker beneficiaries by State Government in concurrence with the Central Government; and
(j) make provision and improvement of such other welfare measures and facilities as may be prescribed by the Central Government.
(7) The State Government may, by notification, constitute with effect from such date as may be specified therein one or more advisory committee to advise the State Government upon such matters arising out of the administration of this Code relating to building workers and such other matters as the State Government may refer to it for advice.
Section 7, The Code on Social Security, 2020 (Act 36 of 2020).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Campaign Committee for Central Legislation for Construction Labour (ncccl) Coordinator Shri Subhash Bhatnagar vs Union of India Ministry of Labour and Employment Labour Secretary
Court's Decision & Legal Precedent
The Court held that constituting the State Building and Other Construction Workers' Welfare Boards, registering workers and establishments, and collecting and actually spending the welfare cess are mandatory statutory duties rather than discretionary ones, and it issued binding directions to every State and Union Territory to constitute the Boards, frame rules, appoint Registering Officers, issue identity cards and account for the cess (of which roughly Rs 37,000 crores had been left unutilised or misapplied), with social audit and CAG scrutiny.
On this section: It is the governing authority on a State Government's obligation to constitute and actually operate the State Building Workers' Welfare Board that section 7 now requires, and on the Board's duty to apply the fund to registered beneficiaries rather than hold it.
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Dewan Chand Builders & Contractors vs Union of India
Court's Decision & Legal Precedent
The Court upheld the levy on construction cost as a fee and not a tax, holding Parliament competent to impose it under the residuary entry and finding the requisite quid pro quo present because the proceeds are earmarked for a special fund administered by the Building and Other Construction Workers' Welfare Board for the very class of workers on whose work the levy is computed, instead of going to the Consolidated Fund.
On this section: It supplies the constitutional footing for the funding of the State Welfare Board that section 7 constitutes, by holding that the cess credited to that Board's fund is a valid fee tied to services rendered to construction workers.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 7
What have the courts held on Section 7 of the Code on Social Security?
National Campaign Committee for Central Legislation for Construction Labour (ncccl) Coordinator Shri Subhash Bhatnagar vs Union of India Ministry of Labour and Employment Labour Secretary (17 Jan 2018) is the leading judgment on this section among those set out below: It is the governing authority on a State Government's obligation to constitute and actually operate the State Building Workers' Welfare Board that section 7 now requires, and on the Board's duty to apply the fund to registered beneficiaries rather than hold it. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 7 of the Code on Social Security?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Code on Social Security 7, section 7 Code on Social Security, section 7 of the Code on Social Security. People searching for it also type chapter 7 of code on social security. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with National Campaign Committee for Central Legislation for Construction Labour (ncccl) Coordinator Shri Subhash Bhatnagar vs Union of India Ministry of Labour and Employment Labour Secretary (17 Jan 2018).
What should I read with Section 7 of the Code on Social Security, and has it changed?
6 other provisions in this corpus refer back to it.
When was Section 7 of the Code on Social Security enacted?
Section 7 of the Code on Social Security, cited as Code on Social Security 7, was enacted on 28 Sep 2020 as Act 36 of 2020. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5890 words
- 155. Power of central Government to make rules1551 words
- 131. Other modes of recovery1340 words
- 143. Power to exempt establishment1042 words
- 6. National Social Security Board and State Unorganised Workers’ Board1022 words
- 76. Amount of compensation946 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.