An employee aged 39 years dies as a result of an injury caused by an accident arising out of and in the…
Under section 76(1)(a) of the Code on Social Security, 2020 (formerly section 4(1)(a) of the Employees' Compensation Act, 1923), where death results from the injury,…
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An employee aged 39 years dies as a result of an injury caused by an accident arising out of and in the course of his employment. His actual monthly wages were ₹18,000. For computing compensation, take the monthly wages specified by the Central Government under section 76(3) of the Code on Social Security, 2020 as ₹8,000 and the relevant factor under the Sixth Schedule as 186.90. Assuming the amount so worked out is more than the amount notified by the Central Government for death cases, what is the compensation payable to his dependants under section 76(1)(a) of the Code?
Answer and explanation
Correct answer A
Under section 76(1)(a) of the Code on Social Security, 2020 (formerly section 4(1)(a) of the Employees' Compensation Act, 1923), where death results from the injury, compensation is fifty per cent of the monthly wages of the deceased employee multiplied by the relevant factor, or the amount notified by the Central Government, whichever is more. Section 76(3) allows the Central Government to specify the monthly wages to be used for this purpose, so ₹8,000 (not the actual ₹18,000) is taken. Compensation = 50% of ₹8,000 x 186.90 = ₹4,000 x 186.90 = ₹7,47,600. The deposit for funeral expenses under section 76(7) is payable in addition and is not part of this amount.
₹8,97,120 applies sixty per cent, the rate for permanent total disablement under section 76(1)(b). ₹16,82,100 uses the actual wages of ₹18,000 and ignores the specified monthly wages. ₹3,73,800 applies twenty-five per cent, the rate of the half-monthly payment for temporary disablement under section 76(1)(d).
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UGC NET HRM / Labour Welfare and Industrial Relations