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.
Chapters VII to IX of the Social Security (Bihar) Rules, 2026 (rules 22 to 28) tell a construction employer in Bihar when the welfare cess is paid, what an appeal against a cess assessment costs, and which registers, wage slips and annual return every establishment keeps and files. They also give the compounding procedure for offences under the Code.
The rules are the Social Security (Bihar) Rules, 2026, as notified on 30 June 2026 and published in the Bihar Gazette (Extraordinary) No. Patna 697 of 1 July 2026. Rule 1(3) says they come into force from the date of its publication in official gazette. Cess is paid within thirty days of completion of the project or of the assessment, whichever is earlier (rule 22). The unified annual return in Form XXII is uploaded on or before the 1st day of February (rule 27(5)). A compounding notice must be answered within fifteen days (rule 28).
Later amendments and State notifications under these rules should be checked in the State Gazette. A labour law compliance review can match your projects and establishments to these rules.
The welfare cess (rules 22 and 23)
| Item | Rule | As printed |
|---|---|---|
| Time to pay | 22(1) | The cess levied under section 100(1) is paid by the employer within thirty days of the completion of the construction project, or within thirty days of the date on which assessment of cess payable is finished, whichever is earlier, to the cess collector or the Bihar Building and other Construction Board |
| Long projects | 22(2) | Where the project exceeds one year, cess is paid within thirty days of completion of one year from the date of commencement of work, and every year thereafter, at the notified rates on the cost of construction incurred in the period |
| Appeal fee | 23 | A non-refundable fee equivalent to one-half percent of the amount in dispute or penalty or both, as the case may be, but not exceeding twenty-five thousand rupees |
The rate of the cess is not printed in these rules; rule 22(2) speaks of "the notified rates". Our post on rule 41 of the Central Rules, collection and refund of cess explains the Central rule. Rule 22 sets Bihar's thirty-day payment periods; the Central rules should be read for any matter that Bihar's chapter does not cover.
Authorities and write-off (rules 24 to 26)
- Property, investment, loans and staff funds (rule 24). The State Government may notify the conditions after consultation with the Finance Department.
- Write-off of irrecoverable dues (rule 25). The Bihar Unorganized Workers Social Security Board, or an officer it authorises, may sanction write-off of contribution, cess, interest and damages if the establishment has been closed for more than five years and the employer cannot be traced despite all possible efforts; or a decree could not be executed for want of assets; or the claim is not fully met by the Official Liquidator or because the unit was nationalised or taken over by the Government.
- Inspector-cum-Facilitator (rule 26). In addition to the powers in section 122(6), the Inspector-cum-Facilitator exercises such other powers and duties as the State Government assigns by general or special order.
Records and registers (rule 27)
This rule is the one most employers will use. Every establishment keeps:
| Register | Form | Rule |
|---|---|---|
| Employees | Form I of the Code on Wages (Bihar) Rules, 2026 | 27(1)(a)(i) |
| Attendance-cum-muster roll | Form IX of the Code on Wages (Bihar) Rules, 2026 | 27(1)(a)(ii) |
| Wages, overtime, advances, fines and deductions for damages and losses | Form IV of the Code on Wages (Bihar) Rules, 2026 | 27(1)(a)(iii) |
| Women employees | Form XXI of these rules | 27(1)(a)(iv) |
A proviso says that for an establishment governed by the Code on Wages, 2019 or the OSH Code and the rules made under them, the first three registers kept there are deemed to be kept under these rules too. Registers may be maintained electronically or otherwise; entries are made in English and Hindi or the language understood by a majority of persons employed; they are produced on demand to the Inspector-cum-Facilitator or an authorised person; and they are preserved in original for five calendar years from the last entry (rule 27(1)(b) to (e)). All registers are kept complete and up to date at an office or the nearest convenient building within the precincts of the workplace, or within a radius of three kilometres (rule 27(3)). Records kept under Chapter V of the Code (employee's compensation) are preserved for ten years from the date of preparation (rule 27(6)).
Rule 27(2) says wage slips are issued to employees "before 24 hours of payment of wages" in Form V, and refers to the Code on Wages (Bihar) Rules, "2025"; the Bihar wage rules themselves are of 2026 and rule 44 of those rules says the slip is issued on or before payment. An employer aiming to satisfy both should issue the slip ahead of payment. Our article on Bihar's wage registers and forms covers Forms I, IV, V and IX.
Rule 27(4) requires a conspicuous notice at or near the main entrance, in bold letters in English, Hindi and a language understood by the majority, naming the officer with designation authorised by the employer to receive notices under the Code or the rules.
The unified annual return (rule 27(5) and (7))
An employer to whom Chapters V and VI of the Code apply uploads a unified annual return in Form XXII online on the portal provided, on or before the 1st day of February in each year, for the preceding year. If the establishment is sold or abandoned, a further return is uploaded within one month of the sale or abandonment, or within four months of discontinuance, for the period up to that date. Every employer also files such other returns as the State Government fixes by general or special order (rule 27(7)). The Central rule is explained in our post on rule 53 of the Central Rules, records and registers.
Compounding of offences (rule 28)
| Step | Rule 28 |
|---|---|
| Notice | The officer authorised by the State Government issues a compounding notice in Form XXIII, electronically or otherwise, for compoundable offences under section 138 |
| Response | The person noticed applies in Form XXIV and deposits the entire compounding amount, by electronic transfer or otherwise, within fifteen days of receipt |
| Certificate | The Compounding Officer issues a composition certificate in Form XXV within ten days of receiving the amount |
| Failure to deposit | Prosecution is instituted before the competent Court |
| Effect | If compounded before prosecution, no prosecution is instituted; if after, the officer informs the Court in writing and the person is discharged |
The rules print no compounding amount. The Central rule is in our post on rule 54 of the Central Rules, compounding of offences.
A worked example
Vikramshila Constructions Pvt Ltd, Bhagalpur, completes a three-storey building project. It checks whether the assessment of cess has been finished and pays within thirty days of the earlier of completion or assessment. Had the project run for more than a year, it would have paid within thirty days of the end of the first year and each year after. If it disputes the assessment, the appeal fee is one-half percent of the amount in dispute, capped at twenty-five thousand rupees. By 1 February it uploads Form XXII for the previous year.
Need help with welfare cess and returns in Bihar?
The thirty-day cess period and the 1 February return date are easy to miss across several sites. Our labour law compliance team can build a project-wise calendar from rules 22 and 27 and review your registers against Forms I, IV, IX and XXI.
Key takeaways
- Cess is paid within thirty days of completion or assessment, whichever is earlier; long projects pay yearly (rule 22).
- An appeal on cess carries a non-refundable fee of one-half percent of the amount in dispute, capped at twenty-five thousand rupees (rule 23).
- Registers: Forms I, IV, IX of the Bihar wage rules and Form XXI for women employees, kept for five calendar years (rule 27).
- The unified annual return in Form XXII is due on or before 1 February (rule 27(5)).
- A compounding notice is answered within fifteen days; the certificate follows within ten days (rule 28).
Read next
- Social Security (Bihar) Rules, 2026: the notification and the unorganised and building workers Boards
- Social Security (Bihar) Rules, 2026: reporting vacancies to career centres
- 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.