The Government of India has notified a 1% welfare cess on construction costs under the Code on Social Security, 2020. The levy applies to the total construction cost paid by employers for building and construction works, and Section 100(1) of the Code provides its legal basis. People building houses that cost less than ₹50 lakh are exempt from the cess with effect from 21 November 2025. The money collected funds welfare measures for construction workers, such as health support, insurance, financial aid and education benefits, and is managed by the Building and Other Construction Workers Welfare Boards in States and Union Territories.