How Do I Calculate Workmen's Compensation for Temporary Total Disablement? Need Help!

Umesh. K
Calculating Workmen's Compensation Under the Workmen's Compensation Act of 1923

How to calculate workmen's compensation as per the Workmen's Compensation Act of 1923 under temporary total disablement? If the employee has a monthly gross income of around Rs. 58,000 and the date of the accident is 28/10/2010, with the employee's current age being 31 years, can anybody help me with how to calculate the compensation for the employee?

Regards,
UK
pon1965
Your query is a little confusing. What is the term "temp total disablement"?

As per the WC Act of 1923, in the case of permanent total disablement, the compensation is 60% of the wages multiplied by the relevant factor as given in Schedule IV of the Act (corresponding to the age) or ₹90,000/-, whichever is more.

Regards,
R. Ponraj
boss2966
Understanding the Victim's Cadre

What is the victim's cadre? If the victim was performing an administrative job, working in stores, or purely involved in managerial activities, then he is not covered under the Workmen's Compensation Act. Refer to Schedule IV for the age factor.

With warm regards,

Regards
shatadalbaksi
Can anyone please tell me how or where to find Schedule IV of the Workmen's Compensation Act? I require the relevant factor slabs.
Umesh. K
Yes, you are right. If we consider its PTD, how do we calculate the compensation under the WC Act 1923?

Compensation Calculation Details

Monthly gross = 59,000/-
Take home = 52,000/-
Age = 31 years
DOA = 28/11/2010

Can you explain?

Regards,
UK

JAWEDALAM
Temporary Disablement Compensation Calculation

In case of temporary disablement under Section 4(1)(d), whether total or partial, resulting from injury, a half-monthly payment equivalent to twenty-five percent of the monthly wages of the workman shall be paid in accordance with the provisions of sub-section (2).

Sub-section 4(2): The half-monthly payment mentioned in clause (d) of sub-section (1) shall be paid on the sixteenth day:

- (i) From the date of disablement if the disablement lasts for twenty-eight days or more, or
- (ii) After a waiting period of three days from the date of disablement if the disablement lasts for less than twenty-eight days; and thereafter, half-monthly payments shall continue during the disablement or for a period of five years, whichever is shorter.

Regarding your first query, the half-monthly wages are calculated as follows:

- Date of Accident: 28/10/2010
- Wages to be considered as Rs. 58,000 per month (basic + DA + all admissible allowances) as per the Supreme Court decision.
- Wages = Rs. 58,000 x 25% = Rs. 14,500 to be paid on 13.11.2010. After 28 days, another Rs. 14,500 will be paid on 28.11.2010, totaling 50% of the salary. This payment will continue for up to 5 years. After that period, a Medical Board is required to determine the percentage of disablement, which will be treated as Permanent Partial Disablement. The amount paid as half-monthly payment will be deducted from the Compensation for Permanent Partial Disablement. However, if an employee is receiving Rs. 29,000 per month as a half-monthly payment, he may receive more than the Compensation for Permanent Partial Disablement within 5 years. There are no rules provided by the Supreme Court on how to recover this excess amount.

In this scenario, Compensation does not arise; instead, the employee is entitled to half-monthly wages.

Compensation for Permanent Total Disablement

Regarding your second query on Compensation for Permanent Total Disablement:

- Monthly Gross = Rs. 59,000
- Take-home = Rs. 52,000
- Age = 31 years
- Date of Accident = 28/11/2010

For Permanent Total Disablement (PTD), an amount equal to sixty percent of the monthly wages of the injured workman multiplied by the relevant factor is applicable. Considering monthly wages as Rs. 8,000 (as per the new amendment) and the relevant factor for age 31 years as 205.98, PTD is calculated as Rs. (8,000 x 60/100) x 205.98, resulting in Rs. 988,704.

I hope this information is correct.

Regards,
Jawed Alam.
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