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Employees Compensation Act

Employees Compensation

Section 4: Amount of compensation

(1) subject to the provisions of this Act, the amount of compensation shall be as follows, namely:-

(a) where death results from the injury an amount equal to fifty per cent of the monthly wages of the deceased employee multiplied by the relevant factor; or an amount of one lakh and twenty thousand rupees, whichever is more;

(b) Where permanent total disablement results from the injury an amount equal to sixty per cent of the monthly wages of the injured employee multiplied by the relevant factor; or an amount of one lakh and forty thousand rupees, whichever is more;
Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount of compensation mentioned in Clause (a) and (b).

Explanation 1.- For the purposes of clause (a) and clause (b), "relevant factor", in relation to a workman means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the workman on his last birthday immediately preceding the date on which the compensation fell due ;

Explanation II.-xxxx

(c) where permanent partial disablement results from the injury
(i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and
(ii)in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury ;

Explanation I.-Where more injures than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries;

Explanation II.- In assessing the loss of earning capacity for the purposes of sub-clause (ii), the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;

(d) Where temporary disablement, whether total or partial results from the injury
a half-monthly payment of the sum equivalent to twenty-five per cent of monthly wages of the employee, to be paid in accordance with the provisions of sub- section (2).

(1-A) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to a workman in respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such workman in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount compensation awarded to the workman in accordance with the law of that country;

(1-B) The Central Government may, by notification if the Official Gazette, specify, for the purpose of sub-section (1) the following amount as monthly wages with effect from the date of publication of the notification in the Official Gazette, namely - eight thousand rupees.

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day-
(i) from the date if disablement where such disablement lasts for a period of twenty-eight days or more, or
(ii) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than twenty-eight days ; and thereafter half-monthly during the disablement or during a period of five years, whichever period is shorter :

Provided that-
(a) there shall be deducted from any lump sum or half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and
(b) no half-monthly payment shall in any case exceed the amount, if any by which half the amount of the monthly wages of the employee before the accident exceeds half the amount of such wages which he is earning after the accident.

Explanation.- Any payment or allowance which the workman has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso.

(2-A) The employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment.

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.

(4) If the injury of the employee results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of not less than five thousand rupees for payment of the same to the eldest surviving dependant of the employee towards the expenditure of the funeral of such workman or where the employee did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure.
Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount specified in this sub-section.

Related Keywords

Accident

Death of Employee

Fatal Accident

Injury To Employee

Workmens Compensation

Related Documents

The First Schedule -   S. 2(1),4: List Of Injuries Resulting in Permanent Total and Partial Disablement

The Fourth Schedule -   S.4 - Factors For Working Out Lump Sum Of Compensation In Case of Permanent Disablement or Death