How the Recent Amendment to the Employees' Compensation Act Impacts Compensation for Injuries and Deaths

Consequences of the Recent Amendment to the Employees' Compensation Act

For death and permanent total disablement due to employment injury from 03.01.2020, employees will receive higher compensation under the Employees' Compensation Act, 1923.

For Death Cases

Minimum: ₹7,45,275/-, Maximum: ₹17,14,050/-

For Permanent Total Disablement Cases

Minimum: ₹8,94,330/-, Maximum: ₹20,56,860/-

The above compensation amounts are calculated based on revised wages of ₹15,000/- per month. Before the latest amendment, this amount was ₹8,000/-. However, if the wage is less than ₹15,000/-, the compensation will be proportionately less, subject to a minimum of ₹1,20,000/- and ₹1,40,000/- for death and permanent disablement benefits respectively.

Thumb Rule

- Higher the age, lower the compensation.
- Relevant factors specified in Schedule-IV provide slabs depending on the age of the concerned employee.

If any of the above details are incorrect or if there is any variation, please correct me and update us in this group/forum.

If the deceased's age is 53 years and presuming his monthly wage exceeds ₹15,000/-, the compensation will be:
50% of the monthly wage x relevant factor (as per Schedule IV).
₹7,500/- (50% of the monthly wage subject to a maximum monthly wage of ₹15,000/-) x 142.68 (relevant factor for 53 years of age from Schedule IV) = ₹10,70,100/-.

Section 4 of the EC Act, 1923 defines the calculation methodology.

Note: For more details and clarifications, please refer to the Employees' Compensation Act.

Regards,
Dr. PBS KUMAR

Please clarify if there is any change in the compensation amount as well. How much will be the compensation in case of death and permanent total disablement? In the beginning, you mentioned another amount, i.e., ₹7,45,275/-, but below the amount given in case the wages are less is the same as before, ₹120,000. Please clarify.