Property developers and construction agencies in Delhi will now have to pay a higher amount of labor as the city government has decided to revise the calculation formula.
The Department of Labor has revised the tax calculation formula which was previously done based on construction cost in 2006. Now the labor tax will be increased as it is calculated based on the last set construction cost by the Central Department of Public Works in 2021. .
The labor tax is levied by the government as a percent of the cost of construction projects worth ₹10 lakh and above. The cess fund is spent on various welfare plans for construction workers and others registered with the Department of Labor.
Through this fund, the Delhi government had provided ₹5,000 per construction worker as a living subsidy during the COVID-19 pandemic.
The Department of Labor through the Delhi Building And Other Construction Workers Welfare Board runs various programs for registered workers. The schemes include financial allowance to relatives of a registered worker in the event of death, disability pension, funeral expenses, maternity allowance, financial assistance for education and marriage of children, among others.