“I haven’t received a single benefit from the welfare board. Every time I apply, the reason for rejection changes, without any clear explanation. I’m tired of running around,” says Sendhil K, a construction worker from Kolar with 15 years of experience, currently working in Bengaluru. He had applied for scholarship benefits for his two children studying in the city. He also claims he hasn’t received any welfare kits issued by the Board or the COVID-19 relief funds. Now, he says, he’s lost all hope of ever receiving support, including a pension after retirement.
Retired construction worker Prabhakaran’s experience is no different. He has been waiting nine months for his pension, with no clarity on when he will receive it. “The system is designed to keep the poor in poverty,” he says.
Construction workers, part of India’s vast unorganised sector, are meant to be supported through Welfare Boards established in every state under the Building and Other Construction Workers (BOCW) Act, 1996. These Boards are responsible for delivering benefits such as scholarships, housing assistance, healthcare, pension schemes, and more. However, many workers struggle to access these entitlements due to bureaucratic hurdles, poor implementation, and a lack of transparency.
Digitisation of labour card applications has only made things worse. Poorly designed websites and limited access to technology have made it harder for workers to claim what is rightfully theirs.
How does the construction workers’ welfare board operate?
Every state is required to establish welfare boards to provide benefits to construction workers under the BOCW Act; Karnataka established the Karnataka Building and Other Construction Workers Welfare Board (KBOCWWB) in accordance with the 2006 rules. To fund welfare schemes, a 1% cess is levied on all construction projects (excluding those with a value of less than ₹10 lakh), which is paid by the building owner or employer.
The KBOCWWB, a statutory body, oversees benefit distribution and cess collection. Workers aged 18–60 with at least 90 days of work annually must register for a Labour/Karmika card via the Board’s portal, submitting documents and a certificate from an employer or union. Labour inspectors verify applications through calls and site visits. Without the card, no benefits are accessible. Registered workers must renew annually and contribute to the fund until age 60, as per state-prescribed rates.
Board officials claim that around ₹12,000 crore has been collected through cess contributions (levied on construction projects), of which ₹7,000 crore was spent on welfare schemes. Construction workers are expected to select and apply for benefits based on their individual needs, including scholarships, pensions, marriage assistance, and insurance. Yet, labour unions point out that most workers have not received any benefits they applied for, despite the Board’s mandate to disburse funds via Direct Bank Transfer (DBT).
Chennaiah A, a construction worker in Bengaluru, says, “I have applied for my children’s scholarship for five years but haven’t received a single rupee. They cite a lack of funds or pending approval from the Labour Minister. Though the funds are meant for us, the Board always finds excuses to withhold them.”
Manjubai, Convenor of Slum Janandolana – Karnataka, adds, “No benefits have been released to construction workers since the COVID period.”
Where is the construction workers’ welfare fund going?
Citizen Matters sought data from the Board on registered workers and cess usage, but the Board declined, citing vague reasons tied to the Labour Ministry. According to the Census of India 2011, the total number of construction workers in Karnataka was 28.05 lakh. Yet, as of 2019, the Board only registered 15.69 lakh (56%) workers (excluding 5.05 lakh MGNREGA workers registered through a special drive in 2018–19).
“The Board has not given the numbers to the Karnataka High Court, how will they give it to you or us?” says PP Appanna, president of the Karnataka Pragathi Para Kattada Karmikara Sangha (KPKKS) affiliated to the All India Central Council of Trade Unions (AICCTU).
Due to poor monitoring during the pandemic, benefits meant for construction workers were misused. “Many bogus labour cards were issued, and relief, like rations and transport, went to others, including bus drivers, anganwadi teachers, and auto drivers,” says AH Umesha, Joint Secretary of KBOCWWB. Of the 51 lakh registered workers at the time, 19 lakh fake cards have since been cancelled through background checks and surveys.
Despite the Board being responsible for approvals, accountability remains lacking. “During the COVID fund crunch, the state accessed the Board’s funds using these bogus cards. Neither the state nor the Board has acknowledged this misuse,” adds Appanna. Union members allege the cards were issued in bulk to enable the free flow of funds for food and travel support.
Call for justice for construction workers
In 2024, family members of construction workers filed a petition in the Karnataka High Court in response to the State government’s decision to reduce educational assistance to children of construction workers. The court ruled in favour of the petitioners, directing the board to disburse aid at the earlier, higher rates.
The High Court also criticised the KBOCWWB for fund mismanagement, citing excessive spending for administrative purposes, wasteful expenditures, and poor handling of interest money from its large fund corpus. In January 2025, the court ordered the Comptroller and Auditor General of India (CAG) to audit the fund.
The CAG audit report, tabled in the Legislative Assembly in August, found discrepancies in the way the Board was functioning. The report revealed that ineligible people were disbursed funds, and the KBOCWWB had no proper database of beneficiaries or cess collection agencies. Workers say the Board is wasting funds on over-priced, poor quality educational and nutritional kits. “A bulk of it is not even reaching us,” alleges Appanna.
Plans for new skill centres and anganwadis using welfare funds are also under fire. “Make use of the existing anganwadis. Provide scholarships for our children on time. That would enable their skill development,” says NP Samy, president, Karnataka State Construction Workers Central Union (KSCWCU).
Read more: Why the cess meant for welfare of construction workers remains largely unutilised
The Board has partnered with 8–10 private hospitals across Karnataka to conduct medical check-ups for construction workers, a move questioned by many. “Why not use government hospitals instead of paying hefty fees to private ones?” asks Prabhakaran. Board officials argue that government hospitals are understaffed and lack adequate facilities. However, in many of these camps, workers say, even basic test results are not shared with them or their families.
Housing benefits denied
The law mandates housing benefits for construction workers, but none have been disbursed, say workers. The Board blames the state for withholding approval, even after transferring ₹433 crore to the Karnataka Slum Development Board. Promised benefits of either ₹2 lakh or free housing haven’t reached workers, who instead must pay to live in Slum Board homes.
Instead of direct aid, the Board plans to open five transit accommodations across Karnataka, including one in Doddaballapur, Bengaluru, for 5,000 families, says Umesha.
Even the cess collection process lacks transparency. Agencies like the Greater Bengaluru Authority (formerly BBMP), Bangalore Development Authority (BDA), and the Revenue Department are responsible for collecting the cess and transferring it to the Welfare Board. Umesha clarifies that the Board is severely understaffed, unable to track cess collections or process benefit applications.
Workers, however, see this as an excuse to deny them their rightful aid. “The Board had promised to restart benefits by the end of 2024 after cancelling the bogus cards. We’ve heard nothing since,” says Prabhakaran, who is also the state general secretary of KPKKS.
Construction workers face difficulty getting labour cards
While benefits remain elusive, getting a labour card to access them is even more challenging. Parvathi has worked in the construction sector in Bengaluru since childhood. She has spent nearly five years trying to get a labour card, but has faced repeated rejection due to documentation issues. “I’ve now asked an NGO to help me apply online. The scholarship would really help with my son’s school fees,” she says.
The labour card registration and yearly renewal moved online to simplify access, but it has made things harder. “Most construction workers don’t even have smartphones. And as daily wage earners, they can’t afford to lose workdays to complete a complicated application,” says Chennaiah. Workers struggle with OTP hurdles and server crashes, and are forced to depend on browsing centres to access or update their details.
The labour department’s verification process is deeply flawed. “They make one phone call to the worker, do one site visit and reject the card. One worker works on many projects, and construction is highly seasonal, yet none of that is considered during verification,” says Mahadevi, a social worker, who is helping slum residents in Bengaluru’s Muthyala Nagara get labour cards.
In December 2024, the Centre moved to repeal the two key welfare Acts and replace them with broader labour codes, sparking protests. “This is our death sentence. The Board may cease to exist, and all power will shift to the Centre,” says Appanna. “For now, they’ve promised to retain the Board, but its powers will be gutted—putting our security at risk,” adds Samy.
What construction workers are demanding
- Thorough and transparent verification—clear phone calls with applicants, interaction with co-workers as well as employers, and structured site visits—before labour card approvals or rejections.
- Timely response to application and benefit claims. The workers suggest that if they receive a response in a month, they will have a chance to rectify their errors and reapply.
- Stronger, targeted campaigns to ensure Welfare Board schemes reach genuine construction workers, even those outside unions.
The Board is piloting ‘Karmika Seva Kendra’ for voice-based registration and information access, along with SMS-based applications via keypad phones. “We are planning to launch the scheme in August,” says Umesha.
Meanwhile, construction workers still struggle to access basic rights in a system designed to exclude them.