The Employees' Compensation Act of 1923, originally known as the 'Workmen's

Compensation Act of 1923,' mandates employers to compensate employees or their

families in situations of work-related injuries that end in death or incapacity.

Furthermore, employees in some jobs are at risk of getting illnesses that are unique
to and inherent in their occupations. A worker who contracts an occupational
sickness is regarded to have experienced an accident in the course of employment,
and the employer is obligated to provide compensation. Parts I and II of Schedule I of
the Employee's Compensation Act enumerate injuries that result in permanent
whole and partial disablement, whereas Parts A, B, and C of Schedule III of the
Employee's Compensation Act specify occupational disorders.

By notice S.O.71 (E) issued January 3, 2020, the central government altered the pay
amount to be used for calculating compensation to workers under the Employee's
Compensation Act, 1923. According to the Ministry of Labor and Employment, it will
now be INR 15,000 (US$205). The prior wage amount used for compensation
computation was only INR 8,000 (US$109).

The computation of compensation is dependent on the circumstances of

occupational disability:

(a) Death: 50% of the monthly pay multiplied by the applicable factor, or INR 120,000
(US$1,640), whichever is greater.

(c) Total and permanent disability

60% of the monthly wage multiplied by the relevant factor, or INR 120,000
(US$1,640), whichever is greater.

Schedule IV of the Employee's Compensation Act specifies the relevant factor for
computation.