Understanding the Wage Limit Changes in Employee Compensation: What Do Recent Amendments Mean?

dinesh rajbhar
The Workmen's Compensation Act (Amendment) Act 2009

The Workmen's Compensation Act (Amendment) Act 2009, wherein the amendment made provides "after clause (b) Explanation II shall be omitted." This is an amendment in subsection 1 of section 4.

Impact on Wage Limit for Employee Compensation

In view of the above, the maximum wage limit being considered for the calculation of employee compensation in case of death/permanent disablement under the Employees' Compensation Act has been withdrawn.

Questions on Wage Limit and Amendments

If not withdrawn, then what is the wage limit? What is the impact of the aforementioned amendments?

If withdrawn, then what is this "Rs. 15000/-" declared under the notification dated 3rd January 2020 by the central government?
Madhu.T.K
Compensation Calculation Under Current Wage Ceiling

The present wage ceiling is Rs. 15,000. The compensation payable is equal to 50% of the said salary multiplied by the age factor, subject to a minimum of Rs. 120,000 in the case of death, and 60% of Rs. 15,000 multiplied by the relevant age factor, subject to a minimum of Rs. 140,000 for permanent disablement.

Please attach the gazette notification that you have referred to in your post for further clarification.
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