Paper Mill Industry
September 29, 2017
Maternity Benefit Act
October 1, 2017

Employees compensation Act

Employee Compensation Act is to provide for the payment of compensation by certain employers to their employees for injury caused to them by accident while in employment.

Injuries Compensated under the Act

Under the Act injuries are broadly classified into four groups as those resulting in:-

  • Death
  • Permanent Total Disablement
  • Permanent partial disablement
  • Temporary disablement whether total or partial
  • Contracted occupational diseases.



  • In case of death results from injury, 50% of monthly wages x relevant factor OR Rs.1,20,000/- whichever is more.
  • In case of Permanent total disablement resulted from the injury, 60% of monthly wages X relevant factor OR Rs.1, 40,000/- whichever is more
  • Where permanent, partial disablement or temporary disablement results from injury, as per prescribed schedule.
  • In case of death, funeral expenses of Rs.5, 000/-
  • Relevant factor is based on the age of workman
  • For the purpose of calculation of compensation, the monthly salary ceiling is Rs.8000/-
  • In the event of death or in the event of any dispute, the compensation to be deposited with the Commissioner within one month


In case of temporary Disablement

When the injury of an employee results in his temporary total disablement or temporary partial disablement he is entitled to receive compensation in the form of a half-monthly payment. The amount of a half-monthly payment is determined with reference to the monthly wages the employee was drawing at the time of the injury and is equal to 25% of the monthly wages of the employee. The maximum period during which the employee can receive compensation for temporary total disablement or temporary partial disablement is five years.

In case of Fatal Accidents

Payment of compensation in respect of employee whose injury has resulted in death is not to be made directly to the dependents of the employee. In such case the employers is required to deposit the amount of compensation with the Commissioner for Employee’s Compensation. The Commissioner will then apportion the amount among the dependents of the employee.

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