ION AC T,

MP E NS AT
ME N’S C O 1 92 3
WOR K
L a v a n y a K
s en t e d b y
Pr e e M
r a b h a s h r e
&P
• The Workmen Compensation Act was passed in 1923 with the major objective of

providing financial compensation or assistance to employees when they meet with any
accident or mishap at the workplace.

• Earlier, the employees had to approach the court to seek compensation from their

employer to recover the damage that occurred.

This act simplified all these kinds of complexities. This act applies to employees whether
permanent/ temporary or contractual. This act came into effect when an employee met with
an accident, permanent disability or death at the workplace .
The following people are liable for protection under this law:

• captain or crew member at an aircraft.

• Indian Railways but are not related to any kind of district/zonal or state

offices.
• People who work in factories, industries, construction sites or docks as

per the Schedule || of the Workmen Compensation Act.

• Helpers, mechanics, drivers or individuals associated working with

vehicles.
• Indian laborers who are employed abroad as per the Schedule || of this

act.
 APPLICABILITY OF WORKMEN
COMPENSATION ACT

This law applies to all Indian States except Jammu and Kashmir. Moreover, this act does
not apply to those states who are covered under the Employees State Insurance Act, of
1948.
 H IC H NO
UN D E R W
S TA N C E S
CIR C UM R OVI D E D
T I ON I S P
MP E NS A
CO
• If an employee didn’t follow safeguards or
• If the employee faces injury/ disablement
safety norms during their work at
for less than a total of three days. In this
machinery/equipment. case, the employee can provide some
paid leave, but it is not mandated by law.
• For accidents or any damage caused due

to intake of alcohol/drugs or any other kind

of harmful product.
 R KME N' S
N T HE W O
AN G E S I
AT E S / C H C T
UP D S A T I O N A
C OM P E N
• The amount of wages on which compensation was calculated was

officially changed from Rs 8,000 to Rs 15,000 as per the Ministry of

Labour and Employment.

• In 2010, the name of the Workmen’s Compensation Act was officially

changed to the Employee’s Compensation Act.

 OUNT TO
A T I ON A M
OM P E NS
IS T HE C E D?
HOW A L C U L A T
BE PA ID C
 In the case of Temporary Disability
If the employees face temporary disability at the workplace, they are liable for
compensation from their employer. This compensation amount is up to 25% of an
employee’s monthly salary.

In the case of Permanent Partial Disability

Those injuries that fall under permanent partial disability stated in Schedule | of the
act are liable for this compensation. This compensation is a certain percentage or
part of the compensation that an employee loses due to the disability.
 In the case of Permanent Total Disability
If an employee faces permanent total disability in an accident or mishap at the
workplace, then the employers are liable to pay the compensation amount of 60% of
the employee’s gross salary or an amount of Rs 1,20,000 whichever may be higher.

In the case of death of an employee

When an employee dies at the workplace due to an accident/ mishap then the
employers are liable to pay 50% of the gross salary of the employee or an amount of
Rs 1,20,000 whichever is higher as compensation to their family members.
THA N
K YO U