The Kerala government owes over Rs 2,000 crore in welfare dues to informal sector workers, as per figures presented in the state Assembly. Reports say that there are accumulated arrears across 11 of the 16 labour welfare boards operating in the state.
The affected boards cater to almost one crore workers, and provide essential benefits such as pensions, medical assistance, education support, maternity and death benefits, and marriage assistance. The pending dues have led to concerns about how sustainable these welfare programmes are. Concerns have also been raised over the well-being of the workers who depend on programmes.
The Kerala Building and Other Construction Workers Welfare Board, which owes Rs 1,392 crore to over 5.12 lakh beneficiaries, has the highest amount of dues. It may be noted that the board had collected Rs 2,532.28 crore in construction cess over the past decade and disbursed Rs 8,116.98 crore during the same period.
Another example is the Kerala Agricultural Workers Welfare Fund Board, which supports 25.01 lakh workers, but has Rs 502.35 crore pending. The board currently has only Rs 317.82 crore with it. However, sectors with higher revenues, such as liquor and transport, maintain comparatively healthy welfare reserves.
According to a TOI report, the Kerala Motor Transport Workers Welfare Fund Board manages Rs 3,969.24 crore for 11.33 lakh workers. This is in contrast with boards like the Kerala Abkari Workers Welfare Fund Board, which supports 1,848 workers but has Rs 443.55 crore in funds. This is, and the Kerala Toddy Industry Workers Welfare Fund Board, which has Rs 2,714.20 crore for 20,770 members .
The opposition has criticised the state government for its handling of the situation. Leader of the Opposition in the state Assembly VD Satheesan alleged that 15 out of 31 welfare boards, representing over a crore workers, are struggling with financial difficulties. He also accused the government of attempting to conceal the crisis.
In response to the growing concerns, the Kerala government has made allocations in the 2024-25 state budget to support the welfare of informal sector workers. The budget includes Rs 112.95 crore for the Labour Commissionerate to continue various welfare schemes and Rs 8 crore for the Social Protection for Unorganised Sector Workers' scheme, which aims to provide maternity allowance and distress relief funds.
Additionally, Kerala has launched the Employment Guarantee Workers' Welfare Fund, the first of its kind in the country, to provide pensions and other benefits to workers under the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGA) and the Ayyankali Urban Employment Guarantee Scheme. The fund is designed to offer financial assistance for medical treatment, education, marriage, and other welfare needs.