The Kerala Construction Workers Welfare Fund Act, 1989 was enacted to create a fund to provide relief and to ensure welfare and benefits including pension to the construction workers. Consequent to the Act, the Kerala Construction Workers Welfare Fund Board was formed in 1990 vide G.O No.2453/99/LBR dated 26-12-1989. The Kerala being the first state to implement the above Act for the welfare of construction workers.

Government of India later formulate and enacted The Building and Other Construction workers (Regulation of Employment and Conditions of Service) Act, 1996 (Act No.27 of 1996). According to the provisions of the Act, the Government of Kerala framed the Rule and formed the Kerala Building and Other Construction Workers welfare Board as per GO(P)No.53/98/LBR on 14-08-1998. With the formation of the Board, Kerala Construction Workers Welfare Fund Board was dissolved and the assets and liabilities as well as the membership of the workers were transferred to the newly formed Board.