workplace-injury-compensation-social-security-code-india

Workplace Injury Compensation Under the Social Security Code

If you suffer a personal injury by accident arising out of and in the course of your job, your employer is liable to pay you compensation with no need to prove fault, under Chapter VII of the Code on Social Security, 2020. This Code came into force on 21 November 2025 and has subsumed the old Employee's Compensation Act, 1923.

Quick answer: A worker hurt or killed in a work accident (or by a listed occupational disease) can claim compensation from the employer under sections 73 to 91 of the Code on Social Security, 2020. The employer is liable without proof of negligence. The claim must reach the competent authority within two years of the accident or death.

What workplace injury compensation is

Workplace injury compensation is money an employer must pay a worker (or the worker's dependants) when a job-related accident or a listed occupational disease causes death, disablement, or temporary loss of earning. It is a statutory no-fault right, separate from any insurance or ex-gratia payment, and is now governed by the Code on Social Security, 2020.

Legal position in India

The governing law today is the Code on Social Security, 2020 (Act 36 of 2020), whose Chapter VII (Employee's Compensation) replaced the repealed Employee's Compensation Act, 1923. The four Labour Codes, including this Code, were brought into force on 21 November 2025.

Section 74 sets employer liability: if personal injury is caused to an employee by accident, or by an occupational disease listed in the Third Schedule, “arising out of and in the course of his employment”, the employer must pay compensation. No proof of employer fault is needed. See the Code on Social Security, 2020.
Section 74 provisos remove liability where the injury causes disablement of three days or less, or where a non-fatal injury is directly attributable to the worker being under drink or drugs, wilful disobedience of a safety order, or wilful removal of a safety guard.
Section 74(4) treats a commuting accident (home to work or back) as arising out of employment if a nexus between the time, place, circumstances and the employment is established.
Section 76 fixes the amount of compensation (see the step below).
Section 82 requires the claim to be preferred before the competent authority within two years of the accident, or within two years of death.
Sections 90 and 91 route disputes to a competent authority, and bar civil courts from deciding these questions.

Step-by-step: how to claim

Get medical treatment immediately and keep every report, bill, and disability certificate. Under section 76(5) the employer must reimburse actual medical expenditure for the injury.
Give notice of the accident to the employer “as soon as practicable” after it happens, stating the name of the injured person, the cause, and the date (section 82).
Confirm the employer has reported a fatal accident or serious bodily injury to the competent authority within seven days (section 73), and ask for a copy.
If the employer pays voluntarily, ensure any settlement agreement is registered with the competent authority under section 89, so it is enforceable.
If the employer denies or underpays, file a claim before the competent authority for your area within two years of the accident or death (sections 82 and 90).
Attend the competent authority hearing; the authority decides liability, the amount, and the nature or extent of disablement (section 90).

Documents required

Proof of employment (appointment letter, ID card, wage slips, or attendance record)
Wage records for the twelve months before the accident, to compute monthly wages under section 78
Medical reports, the injury or disability certificate, and treatment bills
The accident report or any FIR, factory or site incident record
For a death claim, the death certificate and proof of being a dependant
Copy of the section 73 report sent by the employer, if available

Common mistakes

Waiting too long: the two-year limit in section 82 is strict, though the authority may condone delay for sufficient cause.
Filing a civil suit first: under section 74(7) a worker who sues the employer for damages in a civil court loses the right to claim statutory compensation.
Assuming a short injury qualifies: section 74 excludes injuries causing disablement of three days or less.
Not getting a voluntary settlement registered under section 89, leaving it unenforceable.
Confusing this Code with ESIC: under section 73(3), establishments covered by the Employees' State Insurance scheme follow that route instead.

Worked example Kashvi Pathak worked on a packaging line and lost the use of two fingers when a machine guard failed. Her disablement lasted well over three days, so section 74 liability applied. Because the injury was a permanent partial disablement, her compensation was assessed under section 76(1)© using the loss-of-earning-capacity percentage in the Fourth Schedule. When her employer delayed, she filed before the competent authority within the two-year window under section 82.

RTI angle

If the accident happened at a public-sector unit, government factory, municipal worksite, or any office that is a public authority, you can use the Right to Information Act, 2005 to obtain the records that prove your claim. RTI is useful to get the accident or incident report, the section 73 report sent to the competent authority, your wage and attendance records, and any internal safety-inspection findings. A sample request:

To the Public Information Officer,
Under Section 6(1) of the RTI Act, 2005, please provide:
1. A copy of the accident report dated [date] concerning the worker [name].
2. A copy of the report sent to the competent authority under Section 73 of the Code on Social Security, 2020.
3. My wage records for the twelve months preceding [date].
Please supply this under Section 7(1) within 30 days.

Build a clean request with the AI RTI Drafter, and if the reply is late or refused, escalate with the First Appeal Builder.

FAQ

Q. Which law now governs workplace injury compensation in India?

The Code on Social Security, 2020 (Act 36 of 2020), Chapter VII. It came into force on 21 November 2025 and subsumed the earlier Employee's Compensation Act, 1923.

Q. Do I have to prove my employer was negligent?

No. Section 74 creates no-fault liability. If the injury arose out of and in the course of employment, the employer must pay, subject only to the stated exceptions such as drink or drugs or wilful disobedience of a safety rule.

Q. How is the compensation amount calculated?

Under section 76, death attracts an amount equal to 50 percent of monthly wages multiplied by a relevant factor (or a notified amount, whichever is more), permanent total disablement attracts 60 percent on the same basis, permanent partial disablement is a proportion based on the Fourth Schedule, and temporary disablement is a half-monthly payment of 25 percent of monthly wages.

Q. What is the time limit to file a claim?

Section 82 requires the claim to be preferred before the competent authority within two years of the accident, or within two years of the date of death. The authority may still entertain a late claim if it is satisfied there was sufficient cause for the delay.

Q. Who decides the claim if the employer refuses to pay?

A competent authority appointed by the State Government under section 91 decides liability, amount, and the extent of disablement (section 90). Civil courts have no jurisdiction over these questions.

Q. Does an accident on the way to work count?

It can. Section 74(4) treats a commuting accident as arising out of and in the course of employment if a nexus between the time, place, and circumstances of the accident and the employment is established.

Q. Is there any payment for funeral costs in a death case?

Yes. Under section 76(7), in addition to compensation, the employer must deposit a sum of not less than fifteen thousand rupees with the competent authority for the funeral expenses of the deceased worker.

Sources

The Code on Social Security, 2020 (Act 36 of 2020) on India Code
Press Information Bureau, four Labour Codes made effective from 21 November 2025 PIB release
The full citizen handbook: The RTI Playbook