2023 · Q89
What is the amount of compensation that is to be paid to an employee who is totally and permanently disabled as a result from injury under the provisions of the Employees' Compensation Act, 1923? (Hints Monthly wages drawn were ₹ 22,500 and relevant factor is 159.80)
Social Security in IndiaGratuity and compensation
- A₹ 14,38,200
- B₹ 23,97,000
- C₹ 21,57,300
- D₹ 7,67,040
Explanation
For permanent total disablement, Section 4(1)(b) awards 60% of monthly wages multiplied by the relevant factor, but wages exceeding Rs. 15,000 per month are deemed to be Rs. 15,000. So the compensation is 60% x 15,000 x 159.80 = 9,000 x 159.80 = Rs. 14,38,200. Option C wrongly uses the full Rs. 22,500 wage. Hence A.