Under Section 100(1) of the Code on Social Security, 2020, the cess payable by an employer for building and other construction work, credited to the Building and Other Construction Workers' Welfare Fund, is levied at the rate of: 

Section 100(1) of the Code on Social Security, 2020 empowers the Central Government to levy and collect, from every employer, a cess for the purposes of building and other construction workers' welfare, at such rate not exceeding two per cent, as may be notified. Exercising this power, the Central Government has notified the cess at the rate of one per cent of the total cost of construction incurred by an employer, replacing the identical one per cent rate that existed under the earlier notification issued in 1996 under the now-repealed Building and Other Construction Workers' Welfare Cess Act, 1996. The collected cess flows into state-level Building and Other Construction Workers' Welfare Boards, funding welfare measures such as accident assistance, healthcare, education support, and housing schemes for registered construction workers.