• J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company

The Workmen's Compensation Act, 1923

Workmen's Compensation Act

Applicability

All over India

Sec. 1

Coverage of Workmen

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

Sec. 1(3)

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.

Sec. 3

Wages

When the monthly wages are more than Rs. 4000 per month it will be deemed Rs. 4000.
Sec. 4 Exh. b

Notice of accident

As soon as practicable

Sec. 10

Amount of compensation
  • 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 or 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 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. 219.95
  • Amount of compensation Rs. 329935
  • In case of total disablement Rs. 395910

Sec. 4

Penalty (Sec. 4A)

1. In case of default by employer: 50% of the compensation amount + Interest to be paid to the workman or his dependents as the case may be
2. Deposit of Compensation: Within one month with the Compensation Commissioner.