The amount of compensation under the Workmen’s Compensation Act, 1923 (now known as the Employees’ Compensation Act, 1923), varies depending on several factors, including the nature and severity of the injury, the employee’s monthly wage, and the specific provisions of the Act. The Act provides a schedule of compensation for different types of injuries or disabilities.
Overview of how Compensation Amounts are Determined under the Act
1. Nature and Extent of Injury:
- The compensation amount is influenced by the nature and severity of the injury or disability suffered by the employee. The Act categorizes injuries into different classes, each with its corresponding compensation amount.
2. Monthly Wage of the Employee:
- The employee’s monthly wage at the time of the injury plays a crucial role in calculating the compensation amount. Generally, the higher the monthly wage, the higher the potential compensation.
3. Specific Schedule of Compensation:
- The Act provides a detailed schedule of compensation for various types of injuries and disabilities. This schedule outlines the compensation amount payable for each type of injury, ranging from minor injuries to more severe disabilities or fatalities.
4. Temporary Total Disablement:
- If the employee sustains a temporary total disablement that results in temporary incapacity to work, the Act typically provides for a compensation amount calculated as a percentage of the employee’s monthly wage. This percentage may vary depending on the nature of the disablement.
5. Permanent Total Disablement:
- In cases of permanent total disablement, where the employee is permanently unable to work, the Act provides for compensation based on a specific percentage of the monthly wage. The percentage may vary depending on the injury’s severity and its impact on the employee’s earning capacity.
6. Death Compensation:
- In the unfortunate event of an employee’s death due to a work-related accident or injury, the Act provides for compensation to be paid to the deceased employee’s dependents. The amount of compensation is typically a lump sum payment and is based on a specific percentage of the employee’s monthly wage.
7. Specific Injuries:
- The Act includes provisions for specific injuries, such as the loss of specific body parts (e.g., limbs, eyes, ears). Compensation for these injuries is determined based on the schedule provided in the Act.
8. Medical Expenses:
- In addition to compensation for injuries or disabilities, the Act allows for the reimbursement of medical expenses incurred by the injured employee for the treatment of injuries sustained during the course of employment.
9. Minimum and Maximum Compensation:
- The Act may specify minimum and maximum compensation limits, ensuring that employees receive a reasonable and fair amount of compensation while also considering the employer’s ability to pay.
10. Changes Over Time:
- Compensation amounts specified in the Act may be subject to periodic revisions or amendments by the government to account for inflation and changes in the cost of living.
