Construction Labourers In India More Vulnerable, Need More Care And Social Security | Analysis

Construction labourers in India form one of the largest and most vulnerable segments of the informal workforce, with over 5 crore workers engaged in the sector, according to estimates by the Ministry of Labour and Employment. Despite playing a critical role in nation-building, these workers often face precarious working conditions, low wages, lack of job security, and minimal access to healthcare, education, and housing. 

Notably, the Building and Other Construction Workers (BOCW) Welfare Cess Act mandates the collection of a 1% cess on construction projects to fund welfare schemes for labourers. According to reports, out of the over Rs 70,000 crore collected under this act as of recent reports, only a fraction has been disbursed due to administrative inefficiencies and lack of awareness among workers. Most construction labourers are interstate migrants, making them even more vulnerable to exploitation, wage theft, and exclusion from local welfare schemes. 

"Moving beyond brick and mortar, there is a need for companies to work on strengthening the human foundations of development— the workers and families behind each project site. A grassroots social development programme that works directly with migrant workers and their families is the need of the hour. Designed to align with national development goals, there is a need for initiatives which addresses the systemic gaps faced by labour communities by focusing on early childhood education, adolescent engagement, digital literacy, women’s empowerment, access to government schemes, and primary healthcare," said Pankaj Bansal, Director, M3M India.

India’s real estate sector has long been the backbone of urbanisation, employment, and infrastructure development—contributing nearly 7% to the national GDP and generating millions of jobs across both formal and informal sectors. But beyond its economic value, the sector holds a deeper, often overlooked potential: to drive inclusive nation-building. As the country charts its path toward becoming a $5 trillion economy, national priorities have expanded to include not just what we build—but who we uplift along the way. 

The central government’s missions—Skill India, Digital India, Beti Bachao, Beti Padhao, Saksham Anganwadi, and the National Education Policy (NEP)—underscore a shared belief: that real development must reach the last mile. This means creating access to early education, skilling, healthcare, and welfare—especially for those who contribute silently to India’s growth, such as the migrant workers and labour communities who physically build the nation’s new urban centres. Since construction workers' children spend most of their time at the site, there is a need to provide necessary facilities around the site only. 

"Workers’ children must be provided with safe, hygienic early learning spaces, nutritional support, and pre-school education in line with the state curriculum. These can be done easily by developers. Once basic foundation is ready, children can be transitioned into nearby government schools, bridging them from informal settlements into formal education," said the M3M India Director. The realtor said it's working to change the lives of construction workers and their families through its in-house initiative, iMpower, under M3M India’s philanthropic arm, the M3M Foundation which is led by Foundation's Trustee Payal Kanodia.  

Bansal said that serving fresh meals at project sites, ensuring no worker ends the day hungry, is not just an obligation, but should be a belief that dignity begins with the basics.

The COVID-19 pandemic further exposed these gaps, with lakhs of workers stranded without income or support. This calls for urgent reforms in registration processes, portability of benefits across states, real-time tracking of funds, and stronger enforcement of labour rights to ensure social protection and dignified living conditions for construction workers.

He further said, "Beyond the classroom, health camps, maternal counselling, and sanitary pad distribution should be done to support the health needs of women and families. Simultaneously, adult members can be trained in digital skills—from accessing e-governance services to using financial tools—building a digitally empowered ecosystem within labour settlements."

The Narendra Modi government has already launched a social security scheme for the workers. Named Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), the scheme aims to ensure old age protection for Unorganised Workers. It is a voluntary and contributory pension scheme, under which the subscriber would receive minimum assured pension of Rs 3000 monthly after attaining the age of 60 years. During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension.

In a sector often defined by square footage and sales figures, realtors must prove that it’s not just raising towers—it’s raising futures. More and more realtors should come forward and adopt worker-friendly policies.