Workmen’s Compensation Act

Workmen’s Compensation Act, 1923

 Coverage of Workmen: All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work abroad

Employer’s liability to pay compensation to a workman: On death or personal injury resulting into total or partial disablement or occupational disease caused to a workman arising out of and during the course of employment

When an employee is not liable for compensation

  • In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days (i.e The disablement should be more than 3 days)
  • In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to-
  • The workman having been at the time thereof under the influence of drink or drugs, or
  • Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or
  • Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman.

Amount of compensation payable

Where death of a workman results from the injury: An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees, whichever is more

Where permanent total disablement results from the injury – An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount of ninety thousand rupees, whichever is more

Procedure for calculation

(Higher the age – Lower the compensation) – Relevant factor is specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman.

Example: In case of death.

Wages Rs.3000 PM – Age 23 years – Factor as schedule IV Rs.19.95

Amount of compensation Rs.329935 and in case of total disablement Rs.395910

Report of accident: Report of fatal Accident and Serious Injury within 7 days to the Commissioner (not application when ESI Act applies).

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