Employees’ Compensation Act, 1923

Objective and Applicability of the Employees’ Compensation Act, 1923 – The main purpose of the Employees’ Compensation Act, 1923 is to provide compensation to an employee, either directly appointed or through contractor, who is injured during the course of employment.

Maximum Wage Limit – For the purpose of calculation of compensation under this Act, Rs.8,000/- per month will be considered as the highest wages ceiling.

Quantum of Compensation – The general principle is that the lower the age of the employee, the higher the compensation is entitled to. However, the age, last drawn wages, amount of injury is to be considered while calculating the compensation under the Employee’’ Compensation Act, 1923.

Payment of Compensation – Payment of compensation should be made within one month.

Exemption from Paying Compensation – If the employer/ establishment is covered under the Employees’ Insurance Act, 1948, then the employer is not liable to pay compensation under the Employees’ Compensation Act, 1923.

Handling a compensation case can become difficult unless it is handled by an expert labour law advocate dealing with compensation matters.