Chapter VII of the Code on Social Security covers personal injury by accident, or an occupational disease, arising out of and in the course of employment. It also covers accidents while commuting between residence and work.
| Result of injury | Compensation (s. 76) |
|---|---|
| Death | 50% of monthly wages × relevant factor, or the notified amount, whichever is more |
| Permanent total disablement | 60% of monthly wages × relevant factor, or the notified amount, whichever is more |
| Permanent partial disablement | the percentage of loss of earning capacity applied to the permanent total amount |
| Temporary disablement | half-monthly payment of 25% of monthly wages |
- Relevant factor: set by the employee's age in the Sixth Schedule. It ranges from about 228 at age 16 to about 99 at 65 and above.
- Monthly wages: may be capped by the Central Government for this calculation (₹15,000 under the last notification under the old Act).
- Funeral expenses: at least ₹15,000, or the amount the State prescribes.
- Time: pay compensation as soon as it falls due. Delay beyond one month attracts interest, and the authority may impose a penalty of up to 50% more.
- ESIC: if the employee is insured under ESIC, ESIC pays employment-injury and dependants' benefit, and this chapter does not apply.
Report every accident in the accident register. Use the employees' compensation calculator to estimate the amount.
Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.