The Punjab Building and Other Construction Workers Welfare Board slashed pension benefits earlier this year claiming the existing scheme would impose an unsustainable ₹ 360-crore annual burden. Official records accessed by Hindustan Times, however, reveal that the board’s actual annual pension liability is just ₹ 4.4 crore—a tiny fraction of its projection.
Activists say that the board’s reserves face no immediate threat of depletion. Unions cry foul The board’s current commitments cover only 1,350 beneficiaries (1,132 old-age pensioners and 218 family pensioners). This annual ₹ 4.4-crore expenditure accounts for barely 1% of its dedicated pension corpus of ₹ 436 crore, raising questions over the rationale used to reduce workers’ benefits. Overall, the board holds total funds of around ₹ 2,100 crore. To arrive at the ₹ 360-crore figure, the board assumed that 1 lakh workers would simultaneously qualify for the maximum monthly pension of ₹ 3,000 (translating to ₹ 30 crore a month). Records from the board’s 31st meeting on June 5, 2026, confirm this projection was used to argue that existing rates would jeopardize other welfare schemes. Steeper slabs Under the revised structure—issued in January 2026 and applied retrospectively from December 1, 2025—workers with up to three years of membership now receive a monthly pension of just ₹ 1,000 and a family pension of ₹ 500—down from the earlier flat rate of ₹ 3,000. Those with three to seven years of membership are entitled to ₹ 1,500 and ₹ 750, respectively, while workers with seven to 10 years receive ₹ 2,000 and ₹ 1,000. To claim the maximum monthly pension of ₹ 3,000 and family pension of ₹ 1,500, workers must now complete more than 10 years of membership. 2025, were protected under the old rules, union leaders point out that family pension recipients and new applicants have already suffered reduced payouts under the new slabs While workers enrolled prior to November 30. The board’s projection of 1 lakh pension applicants stands in stark contrast to the ground reality. The welfare board is continuously funded by a mandatory 1% cess levied on all public and private construction projects across Punjab. These incoming cess collections, combined with annual interest earned on the main ₹ 2,100-crore fund, ensure the corpus grows substantially every year.
Of the 2.21 lakh total registered construction workers in the state, only 1,350 currently draw pensions due to strict age thresholds (60 years and above) and complex documentation requirements.
Sardara Singh, the state president of the Dr Ambedkar Workers’ Union, Punjab, alleged that board officials misled the leadership to push through the decision. Both principal secretary (labour) Manvesh Singh Sidhu and labour commissioner Rajeev Gupta failed to respond to repeated calls and text messages seeking comment.
“It appears officials presented incorrect facts to secure the board chairman’s approval for an inherently anti-worker policy,” he said.
Labour rights activist Vijay Walia criticised the board’s reasoning, noting that even without accounting for incoming cess or annual interest earnings, the ₹ 436-crore corpus alone could fund current pension payouts for nearly a century.
“The stark contrast between projected liability and actual payout shows a failure to assess ground realities before stripping workers of their benefits,” Walia said.
