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Code on Social Security, 2020 · 8

Section 100: Levy and collection of cess

Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026

Section 100 — Governs levy and collection of cess and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred…

Full official textSource checked: 20 August 20262 direct Central Rule link(s)

Current-law status

The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.

Primary sources

Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗

Finin2min analysis — what the section actually does

Operative clauses

(1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.
Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— (a) the cost of land; and (b) any compensation paid or payable to an employee or his kin under Chapter VII.
(2) The cess levied under sub-section (1) shall be collected from every employer undertaking building or other construction work in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such…
(3) The proceeds of the cess collected under sub-section (2) shall be deposited by the local authority or such other authority notified by the State Government to the Building Workers' Welfare Board in such manner as may be prescribed by the Central Government.
(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Chapter including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed by the Central Government on the basis of the quantum of the building or other construction work involved.

Provisos, explanations & qualifications

Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— (a) the cost of land; and (b) any compensation paid or payable to an employee or his kin under Chapter VII.

Thresholds and timelines in the text

Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.

Actors expressly appearing in the text

Employer, Employee / worker, Worker, Central Government, State Government, Authority / officer

Full statutory text — Section 100

Official English text transcribed from the current India Code consolidation; page headers/line breaks are normalised for web reading. The Gazette/India Code PDF remains authoritative for typography, amendment footnotes and schedules.

100. Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of
social security and welfare of building workers at such rate not exceeding two per cent. but not less than
one per cent. of the cost of construction incurred by an employer, as the Central Government may, by
notification, from time to time, specify.
    Explanation.—For the purposes of this sub-section, the cost of construction shall not include,—
        (a) the cost of land; and
        (b) any compensation paid or payable to an employee or his kin under Chapter VII.
    (2) The cess levied under sub-section (1) shall be collected from every employer undertaking building
or other construction work in such manner and at such time, including deduction at source in relation to a
building or other construction work of a Government or of a public sector undertaking or advance collection
through a local authority where an approval of such building or other construction work by such local
authority or such other authority notified by the State Government is required, as may be prescribed by the
Central Government.
    (3) The proceeds of the cess collected under sub-section (2) shall be deposited by the local authority or
such other authority notified by the State Government to the Building Workers' Welfare Board in such
manner as may be prescribed by the Central Government.
     (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under
this Chapter including payment of such cess in advance may, subject to final assessment to be made, be
collected at a uniform rate or rates as may be prescribed by the Central Government on the basis of the
quantum of the building or other construction work involved.

How to apply this provision

Primary statutory test — (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.
Additional operative limb — Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— (a) the cost of land; and (b) any compensation paid or payable to an employee or his kin under Chapter VII.
Qualification / exception to test — Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— (a) the cost of land; and (b) any compensation paid or payable to an employee or his kin under Chapter VII.
Numerical or timing control — Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.
Central Rule mapping — 41, 42. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
Prescribed-form link recorded in the corpus — XV, XVI, XVII, XVIII. Confirm the current notified form/version before filing.

Why this is section-specific: the operative-clause, exception, threshold and cross-reference panels above are extracted from Section 100 itself rather than a generic “trigger/control/evidence” template.

Rules, forms and cross-references

Direct 2026 Central Rule mapping

Rule 41 Rule 42

Forms mapped

XV, XVI, XVII, XVIII

Other sections cited in this text

None expressly mapped in the current concordance.

Related Labour Hub resources

EPFO Schemes ESIC Gratuity hub

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

For a worker/member seeking a benefit connected with levy and collection of cess, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Ce” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 41, 42. Use the current notified XV, XVI, XVII, XVIII where the process requires it.

Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.

Q&A — Section 100

What does Section 100 of the Social Security Code cover?

What is the main legal requirement or power in Section 100?

The first operative clause identified from the official text is: “(1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.” Read it with the remaining subsections and any proviso below.

Does Section 100 contain a proviso or explanation?

Yes. A qualification extracted from the official text is: “Explanation.—For the purposes of this sub-section, the cost of construction shall not include,— (a) the cost of land; and (b) any compensation paid or payable to an employee or his kin under Chapter VII.”

What time limit, percentage or amount appears in Section 100?

The provision contains this numerical/time expression: “Levy and collection of cess.— (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.” Apply it only in the clause and context in which it appears.

Which 2026 Central Rules are linked to Section 100?

The current concordance maps Section 100 to Central Rule(s) 41, 42.

Is a prescribed form mapped to Section 100?

The current corpus records: XV, XVI, XVII, XVIII. Confirm the current notified version before filing or service.

Is Section 100 currently operative?

Source & verification trail

Act: Code on Social Security, 2020 — official India Code PDF ↗

Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗

Official library: Ministry of Labour & Employment — Labour Codes ↗

Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.

Reliance note: This page is an educational legal-reference layer. Verify the current official text, the applicable Central/State rules, notifications, schemes and judicial decisions before acting on a live matter.