In Kerala, building cess is now only required for new constructions with an estimated cost of over ₹50 lakhs

Kerala Building and Other Construction Workers’ Welfare Board (i.e. for houses/buildings in Kerala) — In Kerala, building cess is now only required for new constructions with an estimated cost of over ₹50 lakh, a change implemented with the Central government's new labor codes that took effect on November 21, 2025. For houses below this cost threshold, no cess is applicable. The cess is a 1% tax on the construction cost, calculated based on the plinth area, and is collected as soon as the private building is constructed

What is the “new slab / threshold”

• As per the latest update (2025), building/ labour-cess is required only for residential buildings whose construction cost exceeds ₹50 lakh.

• Formerly, cess applied to buildings costing ₹10 lakh or more, or with plinth-area above 100 m² (approximately 1077 sq.ft).

• The “cess rate” remains the same: typically 1% of the construction cost (or the cost assessed by the local authority) under the central Building and Other Construction Workers’ Welfare Cess Act, 1996.

What this means for homeowners / builders

• If your building’s estimated cost is ₹50 lakh or below, you are exempt from paying the cess under the new norm.

• If the building’s cost is above ₹50 lakh, cess must be paid (≈ 1% of cost).

• The cess is normally collected when applying for building-permit / completion / occupancy certificate from local body.