Section 76: Amount of compensation

Finin2min analysis — what the section actually does

Full statutory text — Section 76

76. Amount of compensation.—(1) Subject to the provisions of this Chapter, the amount of
compensation shall be,—
        (a) where death results from the injury, an amount equal to fifty per cent. of the monthly wages of
    the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central
    Government from time to time, whichever is more;
         (b) where permanent total disablement results from the injury, an amount equal to sixty per cent.
    of the monthly wages of the injured employee multiplied by the relevant factor or an amount as may be
    notified by the Central Government from time to time, whichever is more:
   Provided that the Central Government may, by notification, from time to time, enhance the amount of
compensation specified in clauses (a) and (b).
    Explanation.—For the purposes of clauses (a) and (b), “relevant factor”, in relation to an employee
means the factor specified in column (3) of the Sixth Schedule relating to factors against the corresponding
entry in column (2) thereof, specifying the number of years which are the same as the completed years of
the age of the employee on his last birthday immediately preceding the date on which the compensation fell
due;
        (c) where permanent partial disablement results from the injury,—

            (i) in the case of an injury specified in Part II of the Fourth Schedule, such percentage of the
        compensation which would have been payable in the case of permanent total disablement as is
        specified therein as being the percentage of the loss of earning capacity caused by that injury; and
            (ii) in the case of an injury not specified in the Fourth Schedule, such percentage of the
        compensation payable in the case of permanent total disablement as is proportionate to the loss of
        earning capacity (as assessed by the medical practitioner) permanently caused by the injury.
    Explanation 1.— For the purposes of this clause, where more injuries than one are caused by the same
accident, the amount of compensation payable under this head shall be aggregated but not so in any case as
to exceed the amount which would have been payable if permanent total disablement had resulted from the
injuries.
     Explanation 2.—In assessing the loss of earning capacity under sub-clause (ii), the medical practitioner
shall have due regard to the percentage of loss of earning capacity in relation to different injuries specified
in the Fourth Schedule;
        (d) where temporary disablement, whether total or partial, results from the injury, a half-monthly
    payment of the sum equivalent to twenty-five per cent. of monthly wages of the employee, to be paid
    in accordance with the provisions of sub-section (4).
    (2) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation
payable to an employee in respect of an accident which occurred outside India, the competent authority
shall take into account the amount of compensation, if any, awarded to such employee in accordance with
the law of the country in which the accident occurred and shall reduce the amount fixed by him by the
amount of compensation awarded to the employee in accordance with the law of that country.
   (3) The Central Government may, by notification, specify for the purposes of sub-section (1), such
monthly wages in relation to an employee as it may consider necessary.
    (4) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the
sixteenth day—
        (i) from the date of disablement where such disablement lasts for a period of twenty-eight days or
    more; or
         (ii) after the expiry of a waiting period of three days from the date of disablement, where such
    disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the
    disablement or during a period of five years, whichever is shorter:
    Provided that—
        (a) there shall be deducted from any lump sum or half-monthly payments to which the employee
    is entitled, the amount of any payment or allowance which the employee has received from the
    employer by way of compensation during the period of disablement prior to the receipt of such lump
    sum or of the first half-monthly payment, as the case may be, and such payment or allowance which
    the employee has received from the employer towards his medical treatment shall not be deemed to be
    a payment or allowance received by him by way of compensation;
         (b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount
    of the monthly wages of the employee before the accident exceeds half the amount of such wages which
    he is earning after the accident.
    (5) The employee shall be reimbursed, the actual medical expenditure incurred by him for treatment of
injuries caused during the course of employment, by his employer.
     (6) On the ceasing of the disablement before the date on which any half-monthly payment falls due,
there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement
in that half-month.
    (7) If the injury of the employee results in his death, the employer shall, in addition to the compensation
under sub-section (1), deposit with the competent authority a sum of not less than fifteen thousand rupees
or such amount as may be prescribed by the State Government, for payment of the same to the eldest

surviving dependant of the employee towards the expenditure of the funeral of such employee or where the
employee did not have a dependant or was not living with his dependant at the time of his death, to the
person who actually incurred such expenditure:
    Provided that the Central Government may, by notification from time to time, enhance the amount
specified in this sub-section.

How to apply this provision

1. Primary statutory test — (1) Subject to the provisions of this Chapter, the amount of compensation shall be,— (a) where death results from the injury, an amount equal to fifty per cent. of the monthly wages of the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time to time, whichever is more;
2. Additional operative limb — (b) where permanent total disablement results from the injury, an amount equal to sixty per cent. of the monthly wages of the injured employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time to time, whichever is more:
3. Qualification / exception to test — Provided that the Central Government may, by notification, from time to time, enhance the amount of compensation specified in clauses (a) and (b).
4. Numerical or timing control — Amount of compensation.—(1) Subject to the provisions of this Chapter, the amount of compensation shall be,— (a) where death results from the injury, an amount equal to fifty per cent. of the monthly wages of the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time to time, whichever is more;
5. Central Rule mapping — 27. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Central Government, State Government, Authority / officer.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 76

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