Building Workers explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VI of the Code on Social Security (Gujarat) Rules, 2023 (rules 58 to 71) covers the register of beneficiaries, the constitution and working of the Gujarat Building and Other Construction Workers Welfare Board, when the cess is paid, the appeal fee and the employer's return. Rule 70 was substituted by the Amendment Rules dated 28 January 2026.
The rules are the Code on Social Security (Gujarat) Rules, 2023, as notified on 30 December 2023 (No. GR/2023/158/PGA/172021/24659/M3) and amended by the Code on Social Security (Gujarat) (Amendment) Rules, 2026 dated 28 January 2026, in force from the commencement of the Code on Social Security, 2020. The employer pays the cess in advance or before the commencement of the work (rule 66(1)). An appeal to the Board's authority carries a non-refundable fee of half percent, not exceeding rupees twenty-five thousands of the amount in dispute (rule 67). The employer files a return in Form XXXI within Sixty days (rule 71).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Commencement and Central rules
Rule 1(3) reads: "They shall come into force from the commencement of the Code on Social Security, 2020." The four Labour Codes were brought into force from 21 November 2025. Rule 1(2) of the Amendment Rules says they come into force "on the date of their publication in the Official Gazette"; the Gazette date is not printed in the notification text, and none is asserted here. The Central rules are in rule 41 on collection and refund of cess, rules 42, 43 and 44 on time limit, penalty and appeal and rules 45 to 47 on registration of building workers. If you run construction sites in Gujarat, our labour law compliance team can check each site's cess and register position.
What the employer must do
| Obligation | Rule | Form or register | Time limit as printed | Authority |
|---|---|---|---|---|
| Maintain the employment register under section 123(a) | 58 | Form XXIX | Not stated | Inspector or Assessing Officer |
| Pay cess | 66(1) | Electronically with read receipt or otherwise | In advance or before commencement of the work | Cess collector |
| Pay cess on a house of Rs.50 lakh or more | 66(2) | Electronically | At the time of plan approval | Cess collector |
| Pay cess on building by builders, developers, contractors | 66(3) | Electronically | At the time the plan is submitted for approval | Cess collector |
| Appeal on cess or penalty | 67 | Appeal with fee | Fee half percent, not exceeding rupees twenty-five thousands, of the amount in dispute, non-refundable | Appellate authority |
| Return under section 123(d) | 71(1) | Form XXXI | Within Sixty days of commencement of work or payment of cess | Assessing Officer |
| Report a change in the return | 71(2) | Communication | Immediately, not later than thirty days from the change | Assessing Officer |
When and how the cess is paid (rule 66)
The cess levied under section 100(1) is paid electronically, with read receipt or otherwise, by an employer in advance or before the commencement of the work, to the cess collector. With the exception of the construction of houses less than Rs.50 lakh for own use, an owner of a house of Rs.50 lakh or more pays the cess at the time of plan approval, as per the existing legal provisions. For buildings and other construction by private builders, developers or contractors, the cess is paid at the time the plan is submitted to the authority for approval. Cess collected electronically is monitored by the Commissioner of Labour / Director of Labour. The rules print no cess rate; the rate is the one fixed under the Code and the law that levies the cess.
Appeal fee (rule 67)
An application of appeal under section 105 accompanies a non-refundable fee equal to half percent of the amount in dispute, or penalty, or both, subject to a maximum of rupees twenty-five thousands.
The Board (rules 59 to 65, 68 to 70)
| Matter | Rule | As printed |
|---|---|---|
| Constitution | 59 | The State Government constitutes the Gujarat Building and other Construction Workers Welfare Board by notification in the Official Gazette |
| Members | 59(2) | Ex-officio Chairperson (Additional Chief Secretary / Principal Secretary / Secretary of the Labour, Skill Development and Employment Department); one Central Government member; five State nominees including the Commissioner / Director of Labour and one each from Health and Family Welfare, Roads and Building, Narmada Water Resources and Water Supply, and Finance (not below Secretary rank); five members representing building workers; five representing employers' associations |
| Member Secretary | 59(2) | The Secretary appointed under rule 63 is Member Secretary and Chief Executive Officer |
| Term | 60 | Three years from the date the appointments are notified |
| Reconstitution | 61 | The State Government initiates the process prior to six months of the expiry of the term |
| Vacancy | 63 | Communicated forthwith; filled not later than 90 days from the occurrence |
| Secretary's deputation | 65 | Term of deputation not exceeding three years; other officers on deputation for a maximum of three years |
| Annual report | 68 | In Form XXX, after 1 April and not later than 31 October each year, with audited accounts and auditors' report |
Rule 70 as substituted in 2026
Rule 70 now reads in two parts. Under sub-rule (1), the Gujarat Building and Other Construction Workers Welfare Board shall (a) pay such amount in connection with the premium for the Group Insurance Scheme of the beneficiaries, (b) frame educational schemes for the benefit of the children of the beneficiaries, and (c) meet such medical expenses for treatment of major ailments of beneficiaries or their dependents as may be notified by the State Government from time to time. Sub-rule (2) keeps the Board's power to implement any scheme of the State Government that it deems fit for the benefit of building workers and the members of their family. Before the amendment, rule 70 consisted only of the power now in sub-rule (2). Rule 89A, added in 2026, provides for the State Government to frame and notify a detailed policy on borrowing of funds and benefit funds for staff, in consultation with the two Boards. These are matters for the Board, but a contractor whose workers are beneficiaries will see them in the schemes the Board runs.
A worked example
Sabar Constructions, a contractor in Himmatnagar, is about to start a commercial building. It pays the cess electronically before work starts, files the Form XXXI return with the Assessing Officer within Sixty days of commencement of its work or payment of cess, and maintains the Form XXIX employment register. When the site manager changes the number of workers reported, the change goes to the Assessing Officer not later than thirty days after it takes effect.
Need help with construction cess compliance?
Cess timing differs for owners, builders and contractors. Our labour law compliance team can map each project to rule 66 and prepare the Form XXXI return and Form XXIX register.
Key takeaways
- Pay the cess electronically in advance or before the work starts; builders pay when the plan is submitted for approval.
- Houses of Rs.50 lakh or more pay at plan approval; own-use houses below Rs.50 lakh are excepted.
- An appeal needs a non-refundable fee of half percent, up to rupees twenty-five thousands.
- File Form XXXI within Sixty days; report changes within thirty days.
- Rule 70, as substituted, lists group insurance, educational schemes and medical expenses for the Board.
Read next
- Code on Social Security (Gujarat) Rules, 2023: notification, Employees' Insurance Court and Board
- Code on Social Security (Gujarat) Rules, 2023: authorities, compounding, vacancy reporting and Forms
- Rule 41 of the Central Rules: collection and refund of cess
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.