Amount of Compensation

Last Updated on: February 26, 2024

(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 50% of the monthly wages of the deceased employee multiplied by the relevant factor; or an amount of 4[one lakh and twenty thousand rupees], whichever is more;
(b) where permanent total disablement results from the injury an amount equal, to 60% 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, enhance the amount of compensation mentioned in clauses (a) and (b). Explanation I-For the purposes of clause (a) and clause factor in relation to 2[an employee] 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 completed years of the age of the 3[employee] on his last immediately preceding the date on which the compensation fell due.

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

Explanation I

Where more injuries 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 purpose of sub-clause (ii), the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different 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 percent of monthly wages of 3[employee], to be paid in accordance with provisions of sub-section (2).

Notwithstanding anything contained in sub-section (1) While fixing the amount of Compensation payable to [an employee] is respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such [employee] in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the [employee] in accordance with the law of that country.]

The Central Government may, by notification in the Official Gazette, specify, for the purposes of sub-section (l), such monthly wages in relation to an employee as it may consider necessary.]*
(2) The half-monthly payment referred to in clause (d) of sub-section (l) shall A be payable on the sixteenth day-

1. From the date of disablement where such disablement lasts for a period of twenty-eight days or more, or

2. 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-

  1. There shall be deducted from any lump sum or half-monthly payments to which the [employee] is entitled the amount of any payment or allowance which the [employee] 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
  2. No ha1f-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 [employee] 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.
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 employee or where the employee did not have a dependent or was not living with his dependent at the time of his death to the person who actually incurred such expenditure.
Provided that the Central Government may, be notification in the Official Gazette, from time to time, enhance the amount in this sub-section.

Comments

Assessment of loss of earning capacity by the qualified medical practitioner

The incorporation of words "assessment of loss of earning capacity by the qualified medical practitioner" in section 4(1)(c) (ii) have some purpose and it is not a case of ambiguity at all. So long as there is no provision which enables the Commissioner to determine the compensation ignoring the medical practitioners report, there is no question of avoiding it by commissioner unless he wants a second report from the Medical Board.

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