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How Is The Amount Of Compensation Payable Calculated?


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How Is The Amount Of Compensation Payable Calculated?

The amount of compensation that the employer has to pay is calculated according to the following specifications:

  • When there is a death caused due to an injury, the compensation payable amounts to 50% of the wages*the factor that is relevant at the time (the higher amount is considered). An additional Rs.1000 is to be provided for funeral expenses.
  • In case the workman is totally and permanently disabled under Schedule1, 60%of his salary* the factor relevant is to be provided. If the amount is less than 60,000, the compensation has to be raised to Rs.60000.
  • In case the workman is partially but permanently disabled, the same calculations as above apply-but the percentage is calculated on the basis of the loss in earning capacity.If the injury is not specified under schedule1, compensation commensurate with the loss in income must be made. Also, the loss or reduction in income will need to be assessed by a qualified doctor.
  • Where the workman is temporarily disabled (either partial or total), the employer will need to make a compensation amounting to 25% of the monthly salary of the worker. This will go on for the time the disability continues, or 5 years –whichever period is shorter.

Related Topics:

  • Workmen Compensation Laws in India

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