Community Medicine (PSM) · Occupational Health and Legislation (ESI, Factories Act)

Under the Employees' Compensation Act 1923, a 30-year-old worker dies in an employment injury leaving a monthly wage of Rs 20,000. The compensation payable to his dependents is calculated as:

  • A 60 percent of monthly wages multiplied by the relevant factor based on age
  • B 50 percent of monthly wages multiplied by the relevant factor based on age
  • C 90 percent of monthly wages multiplied by the relevant factor based on age
  • D A fixed lump sum irrespective of wages and age
Correct answer: B. 50 percent of monthly wages multiplied by the relevant factor based on age

Explanation

For death due to employment injury, the Employees' Compensation Act provides compensation equal to 50 percent of monthly wages multiplied by the relevant factor from the Schedule IV table corresponding to the worker's age. For permanent total disablement the proportion is 60 percent. The 90 percent figure belongs to ESI disablement and dependent benefits, and compensation under this Act is explicitly wage and age linked, not a fixed sum.

Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.

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