The Labour Ministry will conduct a comprehensive review of construction worker reforms at a meeting scheduled for August 2026 in Mumbai. According to reports from Business Standard, states and Union Territories are expected to present progress made on these initiatives, share best practices, and highlight challenges faced during implementation. The review will cover the implementation of three initiatives unveiled at the national BoCW conference in November last year - a digital labour chowk, software for online collection of BoCW welfare cess, and the upgradation of existing labour chowks into labour chowk-cum-facilitation centres.
As reported by Business Standard, India had 56.5 million registered BoCW workers as of March 2024, while states and Union Territories had cumulatively collected ₹1.12 trillion in welfare cess under the Building and Other Construction Workers' Welfare Cess Act, 1996. However, the actual number of construction workers is estimated to be significantly higher given the sector's largely informal and migrant workforce. Despite substantial fund collection, utilisation of these funds has remained uneven due to low worker registration, delays in renewals, uneven disbursal of benefits and gaps in maintaining updated worker databases.
According to Business Standard, several states have already rolled out initiatives aligned with the Centre's digitisation push. Delhi launched the Delhi Shramik Digital Labour Chowk platform to connect registered workers with those seeking short-term labour. Haryana launched the ShramMitra app in May 2026 to connect workers with employers and gradually reduce dependence on traditional labour chowks. Uttar Pradesh also introduced a Digital Labour Chowk platform to connect construction workers and other skilled workers with employers. However, adoption remains uneven across states.
As reported by Business Standard, the meeting will also review the implementation of provisions relating to BoCW workers under the Code on Social Security, 2020. The Code retains the existing BoCW welfare framework, including state welfare boards, worker registration and the utilisation of welfare cess to fund benefits such as pensions, education assistance, healthcare, maternity benefits, housing support and skill development. It also provides for greater use of digital platforms for worker registration and benefit delivery, while enabling portability of social security benefits.
The Centre's reform review comes amid a critical global construction workforce shortage, with the US residential construction industry facing a shortage of 2.2 million skilled workers over the next three years. According to NAHB reports, this shortage costs nearly $11 billion annually in higher wages and extended project timelines. The Dignity Act, supported by NAHB, would provide a seven-year pathway for undocumented workers who have been in the US since 2020, addressing the construction sector's highest estimated share of undocumented immigrant workers. Meanwhile, the CONSTRUCTS Act would create a competitive grant program within the U.S. Department of Labor to support trade schools and community colleges with construction training programs.
