Understanding Workmen's Compensation: How Should Monthly Wages Be Calculated?

Hi,

I have a need for clarification from all of you regarding the Workmen's Compensation Act. Suppose a workman dies in the course of his employment. In this case, he is eligible to receive compensation equivalent to 50% of his monthly wage multiplied by the relevant factor under the Workmen's Compensation Act.

So, my question is, in the process of computing the monthly wage, do we consider his last monthly salary, net payable salary, or is it calculated based on the average monthly salary? Is it appropriate to take the net payable amount or the gross salary when calculating the average monthly salary?

Kindly suggest.

Mantu

Wages/salary under the Workmen's Compensation Act means the amount of salary deemed to be payable for a month's work. This is the average of the wages paid during the last 12 months. If at the time of the accident or when the calculation of compensation is required, the worker had worked only for a period less than 30 days, then the monthly wages shall be the wages which he would have earned had he worked for one month. In both cases, monthly salary means gross and not the net take-home salary.

Regards,
Madhu.T.K