Labour welfare cess calculator for contractors
Works out the building and other construction workers welfare cess deducted from an RA bill, at the rate configured for your contract.
- Applies to
- Building and other construction work covered by the BOCW Acts
- Rates
- Set per contract
- Last checked
- 10 November 2026
Inputs and result. Every rate is yours to set.
Usually the value of work done, before GST, as your contract defines it.
1% is the example contract's configured rate. Check the current notification.
Labour welfare cess this bill
₹20,849
- Cess on this bill₹20,849
- Value billed to date₹1,49,24,879
- Cess deducted to date₹1,49,249
Rule applied. The Building and Other Construction Workers' Welfare Cess Act, 1996 levies cess of 1% of the cost of construction, commonly deducted at source from contractor bills. Use the rate and base configured for your contract, and check the current notification.
Last checked 10 November 2026
The steps behind the figure
- Take the cost of construction in this bill as your contract defines it, usually the value of work done before GST.
- Multiply by the cess rate configured for the contract.
- Add it to cess deducted on earlier bills, to check against the client's certificate of deduction.
- Value of work done, this bill20,84,879
- Retention, 5%- 1,04,244
- Mobilisation advance recovery- 1,50,000
- Interest on advance- 12,375
- Secured advance adjusted- 2,40,000
- Labour welfare cess, 1%- 20,849
- Income-tax TDS, 2%- 41,698
- GST TDS, 2%- 41,698
- GST on the invoice, 18%+ 3,75,278
- Recoveries, 7 lines- 6,10,864
- Net payable₹18,49,293
Who pays the cess?
The cess is on the cost of construction. On most works contracts the client deducts it from the contractor's bills and pays it to the welfare board.
Is cess deducted on material cost too?
The cess is on the cost of construction, which commonly includes material. Your contract and the client's practice set the base.
Do I get a certificate for cess deducted?
Ask for one with each payment. Keep it with the bill in case the welfare board asks for proof.