Under Workmen's Compensation Act, compensation is calculated as follows:
1. For accidents resulting in death, an amount equal to fifty percent of the monthly wages of the deceased workman multiplied by the relevant factor (based on the age of the employee); or an amount of one lakh twenty thousand rupees, whichever is more.
2. For permanent total disablement, an amount equal to sixty percent of the monthly wages of the injured workman multiplied by the relevant factor, or an amount of one lakh forty thousand rupees, whichever is more.
Maximum wages for the purpose of calculating compensation are fixed at Rs. 8000. Therefore, 50% / 60%, as the case may be, the salary at the time of the accident or death, subject to a maximum of 8000, shall be multiplied by the relevant factor given below to calculate compensation.
Factors as per Schedule IV:
Completed year of age Factor for comp. Completed year of age Factor for comp.
Not more than 16 228.54 Not more than 41 181.37
17 227.49 42 178.49
18 226.38 43 175.54
19 225.22 44 172.52
20 224.00 45 169.44
21 222.71 46 166.29
22 221.37 47 163.07
23 219.95 48 159.80
24 218.47 49 156.47
25 216.91 50 153.09
26 215.28 51 149.67
27 213.57 52 146.20
28 211.79 53 142.68
29 209.92 54 139.13
30 207.98 55 135.56
31 205.98 56 131.95
32 203.85 57 128.33
33 201.66 58 124.70
34 199.40 59 121.05
35 197.06 60 117.41
36 194.64 61 113.77
37 192.14 62 110.14
38 189.56 63 106.52
39 186.90 64 102.93
40 184.17 65 or more 99.37
The Act also provides that medical expenses in connection with the accident are to be met by the employer without any limit. The funeral expenses, subject to a maximum of Rs. 5000, are also to be paid to the dependents.
Regards,
Madhu.T.K