1) disability percentage (will be decided by Doctor vide their certificate),
2) compensation factor as per his/her completed years of age on the last birthday of the workman(refer EC act),
3) monthly wages drawn (As per Employees Compensation Act, when the wages exceeds Rs. 8000/-, then for the purpose of calculating the amount of compensation, the wages should be taken as if the workman is drawing the wage of Rs. 8000/- per month) - 60% of wages shall be taken into consideration.
you may please take following example for calculation:
Rs. 4800/- [ 60% of wages] x 199.40 [relevant factor] = 9,57,120/- [ 100% compensation]
The disability is 6% : therefore, the amount of compensation would be Rs. 57,427.20/- (Rupees Fifty seven thousand four hundred twenty seven and twenty paise only).
Also you need to pay compensation amount to workman through DD/pay order in favour of <name of workman> alongwith duly filled and signed Form-L for your application for registration of memorandum of agreement at Regional Labour Court (Commissioner under WC act).
please refer EC Act for more details.