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workmen compensation act, 1923


Coverage of Workmen

According to Sec. 1(3) "All workers irrespective of their status or salaries either directly or through contractor or a person recruited to work abroad."

Employer's liability to pay compensation to a workman

According to Sec. 3 "On death or personal injury resulting into total or partial disablement or occupational disease caused to a workmen arising out of and during the course of the employment."

Amount of compensation

  • Where death of a workman results from the injury - An amount equal to fifty per cent of the monthly wages of the deceased workman multiplied by the relevant factor on an amount of eighty thousand rupees, whichever is more.

  • Where permanent total disablement results from the injury.
  • An amount equal to sixty per cent of the monthly wages of the injured workman multiplied by the relevant factor or an amount  of ninety thousand rupees, whichever is more.

  • Procedure for calculation Higher the age – Lower the compensation


  • Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman.
  • Example: In case of death.
  • Wages Rs.3000 PM ; Age 23 years.
  • Factor as schedule IV Rs.19.95.
  • Amount of compensation Rs.329935.
  • In case of total disablement Rs.395910.
  • When an employee is not liable for compensation


    • In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days.

    • In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable.

    • The workman having been at the time thereof under the influence of drink or drugs.

    • Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen.


    • Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman.

    Sec.3 (a) & b

    When the montly wages are more than Rs.4000/- per month it will be deemed Rs.4000/-. Sec.4 Exh.b

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