WORKMEN’S

COMPENSATION ACT 1923

 MEANING

• The Workmen’s Compensation Act, 1923 provides for

payment of compensation to workmen and their dependants in
case of injury and accident arising out of and in the course of
employment resulting in death or disablement
• The amount of compensation to be paid depends on the nature
of the injury and the average monthly wages and age of
workmen
• Act applies to any person who is employed otherwise than a
clerical capacity in railways, mines, plantations, mechanical.
Construction, loading and unloading, maintenance, repairs etc.
CONDITIONS WHEN EMPLOYER IS NOT
LIABLE TO PAY COMPENSATION
• An injury that doesn’t result in partial or total disablement of
the employee for more than 3 days.
• An injury that does not result in permanent total disability or
death because of an accident in the influence of drugs or drink.
• If an employee meets with an accident that is caused because
of wilful disobedience of the rules by him or her
 AMOUNT OF COMPENSATION

• Temporary disabilities
• For temporary disabilities, the Workmen's Compensation Act 1923
provides financial compensation of up to 25% of the concerned
employee’s monthly wages.
• Permanent total disabilities
• In an unfortunate event when an employee suffers from permanent
disablement, that individual has the right to receive 60% of his/her
monthly wage or Rs.1,20,000, whichever is higher.
• Death
• When an employee dies due to an accident at his/her workplace,
their family is liable to receive 50% of the deceased’s monthly
wages or Rs.1,20,000, whichever is higher.