Understanding the Wage Ceiling in the Employees Compensation Act of 1923: How Do You Calculate It?

Dear friends,

When calculating under the Employees' Compensation Policy of 1923 for an industry's fatal accident, if an employee is receiving a salary of Rs.40,000 per month, we can calculate as follows:

= Rs.40,000 * 50% * age factor = compensation value
or
= Rs.15,000 * 50% * age factor = compensation value

Is the maximum wage ceiling/minimum wage ceiling mentioned in the Employees' Compensation Act of 1923?

Regards, AG Moorthy

Compensation Limits for Death and Disablement

There is a maximum wage limit for deciding compensation payable in the case of death and total permanent disablement. It is Rs. 15,000. For total permanent disablement, it is 60% of Rs. 15,000 multiplied by the age factor, not 50%. There is no minimum wage, but the minimum compensation for death cases is Rs. 120,000, and for permanent total disablement, it is Rs. 140,000. However, for temporary disablement, there is no maximum wage limit, but whatever the gross wages are shall be used for the computation of compensation payable.