22 January, 2020
We write to inform you of a recent development under the Employee’s Compensation Act, 1923 (“EC Act”).
By way of information, the EC Act is an employment law statute that mandates the payment of compensation to covered employees for injuries that arise out of and in the course of their employment and for occupational diseases. The EC Act prescribes the manner in which compensation is to be calculated and takes into consideration factors such as the type of injury, age of the employee, monthly wages earned, etc., for such calculation.
The EC Act empowers the Central Government to notify the amount of monthly wages of an employee that is to be considered for the purposes of calculating compensation. The Central Government has, by way of a notification dated January 3, 2020, enhanced the monthly wages for the purposes of calculation of the compensation payable to an employee from INR 8,000 to INR 15,000.
We have attached a copy of the notification, for your ease of reference.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
