Work Injury Compensation Claim in India: Full Guide

If your employer will not pay after a work injury, or after a worker dies on the job, you do not have to fight in a normal civil court. You file a claim before the competent authority for employees compensation, who can order the employer to pay a fixed amount, plus interest and damages for the delay. This is a free, worker friendly forum, and you have two years to act.

When a worker is hurt or killed by an accident that happened because of the job, the employer must pay compensation. The amount is fixed by a formula in the law, not by bargaining. If the employer refuses or delays, you apply to the competent authority (the officer formerly called the Commissioner for Employees Compensation), who decides the claim and can add interest and a penalty.

Work injury compensation is a no fault payment the employer owes when an employee suffers personal injury or death from an accident arising out of and in the course of employment. You do not have to prove the employer was careless, only that the accident happened because of the job. It is separate from any salary, gratuity, or insurance.

The governing law today is the Code on Social Security, 2020. The four labour codes, including this Code, were brought into force on 21 November 2025. Chapter VII of the Code (Sections 73 to 99) re enacts and replaces the old Employees Compensation Act, 1923 (which itself was once called the Workmen Compensation Act). The worker friendly framework carries over almost unchanged, so older case law and the basic mechanics still apply.

Employer liability. Section 74(1) of the Code states: “If personal injury is caused to an employee by accident or an occupational disease listed in the Third Schedule arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter.” The employer is not liable if the injury keeps the worker off work for three days or less, or where the injury (short of death or permanent total disablement) was caused by the worker being drunk or on drugs, or by the worker wilfully disobeying a clear safety rule.

How much is payable. Section 76 fixes the amount by a formula, not by negotiation:

1. Death: an amount equal to fifty per cent of the monthly wages of the deceased employee multiplied by the relevant factor.
2. Permanent total disablement: an amount equal to sixty per cent of the monthly wages of the injured employee multiplied by the relevant factor.
3. Permanent partial disablement: a share of the total disablement amount, based on the Fourth Schedule or on the loss of earning capacity assessed by a doctor.
4. Temporary disablement: a half monthly payment equal to twenty five per cent of monthly wages.

The “relevant factor” is a number set out in the Sixth Schedule of the Code that depends on the worker age on the last birthday before the compensation fell due. A younger worker gets a higher factor, so a younger person generally receives a larger lump sum for the same wage. The monthly wage used in the formula can be capped by a limit that the Central Government may specify by notification. Funeral expenses of at least fifteen thousand rupees are also payable on a death, or more if the State Government prescribes.

The duty to pay on time, and the cost of delay. Section 77 says compensation must be paid as soon as it falls due. If the employer is in default for more than one month from the date it fell due, the competent authority shall direct the employer to pay the arrears together with interest at the rate prescribed by the Central Government. If there is no justification for the delay, the authority may also order the employer to pay a further sum not exceeding fifty per cent of the arrears as damages. So a stalling employer ends up paying more, not less.

The time limit. Section 82(1) says no claim shall be entertained unless notice of the accident was given as soon as practicable, and unless the claim is brought “within two years of the occurrence of the accident or, in case of death, within two years from the date of death.” Do not let two years slip by.

1. The injured worker, for an injury that caused disablement.
2. The dependants of a worker who died, such as a spouse, minor children, or dependent parents. Where there is a death, the Code expects the amount to be deposited with the competent authority, who then distributes it among the dependants so the money is protected.

1. Report the accident at once. Tell the employer or supervisor in writing and keep a copy. Early notice protects your claim under Section 82.
2. Get medical treatment and records. Keep the hospital papers, the doctor disability certificate, and the bills. The disability percentage decides the payout for permanent partial disablement.
3. Ask the employer to pay. Send a written demand stating the wage, the injury, and the amount due under the formula. Keep proof of sending.
4. Find the competent authority. This is the labour officer for employees compensation for the area where the accident happened or where the worker is employed. The State Labour Department office can tell you the correct officer.
5. File the claim application. Submit the application with the accident details, wage proof, medical and disability certificates, and your demand letter. Filing is meant to be simple and does not need a lawyer, though many workers use one.
6. Attend the hearing. The authority hears both sides, fixes the wage and the relevant factor, and passes an order for the amount, plus interest and any damages for delay.
7. Collect the money. The order is enforceable like a court decree. If the employer still does not pay, the authority can recover it as arrears of land revenue.

1. Proof of employment, such as an appointment letter, ID card, wage slips, or attendance record.
2. Proof of wages, to fix the monthly wage used in the formula.
3. Medical records, the injury or disability certificate, and the percentage of disablement.
4. The accident report or FIR, if any.
5. For a death claim, the death certificate and proof that you are a dependant.
6. Copies of your written demand to the employer and any reply.

1. Waiting too long. A claim filed after two years can be barred under Section 82(1). Act early.
2. Not reporting in writing. Verbal complaints are hard to prove. Give written notice of the accident as soon as practicable.
3. Accepting a small cash settlement quietly. A private deal can leave you far below the statutory formula. The amount under Section 76 is your floor, not a starting offer.
4. Going to civil court first. The competent authority is the proper forum and is faster and cheaper. A civil suit on the same injury can be shut out.
5. Losing the wage and disability proof. Without these, the authority cannot apply the formula correctly.

Usually no. This is a no fault scheme. The employer is liable if the accident arose out of and in the course of employment, even if the worker was careless. The narrow exceptions in Section 74 are being drunk or on drugs, or wilfully breaking a clear safety rule, and these apply only where the injury did not cause death or permanent total disablement.

No. The forum is meant to be accessible and you can file yourself. A lawyer or a trade union can help with the wage calculation, the relevant factor, and the hearing, but the process does not require one.

The employer liability does not disappear. The competent authority can order payment and recover the amount like arrears of land revenue. Many employers are required to insure this liability, which makes recovery easier.

Two years from the date of the accident, or two years from the date of death in a fatal case, under Section 82(1). Give written notice of the accident as soon as practicable as well.

It is fixed by the Section 76 formula based on your wage, your age factor, and the disablement percentage. A private settlement below that floor can be challenged. Treat the statutory amount as the minimum you are owed.

The Code on Social Security 2020 widened coverage, but whether a particular worker is covered depends on the employment and the rules. If you are unsure, ask the State Labour Department or the competent authority for your area before assuming you are excluded.

Start by sending a written demand to your employer and gathering your wage and medical proof. Then approach the competent authority for employees compensation at your State Labour Department. For a broader understanding of how to use the law as an ordinary citizen, read The RTI Playbook. For other citizen help guides, visit righttoinformation.wiki.

1. Code on Social Security, 2020, Section 74 (employer liability), bare Act text: AdvocateKhoj
2. Code on Social Security, 2020, Section 76 (amount of compensation): AdvocateKhoj
3. Code on Social Security, 2020, Section 77 (compensation due, interest and damages for default): AdvocateKhoj
4. Code on Social Security, 2020, Section 82 (time limit for claims): AdvocateKhoj
5. Commencement of the four labour codes on 21 November 2025, Ministry of Labour and Employment: India Code

This guide is general information about Indian law for citizens and is not legal advice. Compensation amounts depend on your actual wage, age, and medical disability percentage, and rules can change by notification. For a specific case, consult the competent authority for employees compensation or a qualified lawyer.