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.

The compensation amount under Section 76 of the Code on Social Security, 2020 is not discretionary. It follows a fixed mathematical formula that the competent authority must apply. Here is the breakdown:

1. Death: 50% of monthly wages x relevant factor (from Sixth Schedule based on age)
2. Permanent total disablement: 60% of monthly wages x relevant factor
3. Permanent partial disablement: Percentage of the total disablement amount as per the Fourth Schedule or as assessed by a medical practitioner
4. Temporary disablement: 25% of monthly wages paid half-monthly during the period of disablement

The relevant factor from the Sixth Schedule ranges from approximately 224 for a very young worker (18 years) down to about 87 for a worker aged 60. This means a younger worker receives a substantially higher lump sum because the factor compensates for the longer remaining working life lost.

Example calculation: A 30-year-old worker earning Rs 15,000/month who suffers permanent total disablement:

1. Relevant factor for age 30: approximately 197.97
2. Compensation = 60% of 15,000 x 197.97 = Rs 9,000 x 197.97 = Rs 17,81,730
3. Plus funeral expenses (minimum Rs 15,000 if death occurs)
4. Plus interest and damages if the employer delayed payment

The Central Government may notify a cap on the monthly wage used for calculation. Check the latest notification on labour.gov.in for the current wage ceiling.

The competent authority (formerly called the Commissioner for Employees Compensation) is a quasi-judicial officer appointed under Section 73 of the Code. The authority has the following powers:

1. To receive and decide claims: Any worker or dependant can file an application for compensation.
2. To determine the wage and age: The authority fixes the monthly wage and the age of the worker to apply the correct relevant factor.
3. To assess disablement: The authority may refer the worker to a registered medical practitioner for a disability assessment.
4. To order interest and damages: Under Section 77, if the employer delayed payment beyond one month, the authority must order interest and may add up to 50% damages.
5. To enforce the order: The order is enforceable as if it were a decree of a civil court. The authority can recover unpaid amounts as arrears of land revenue.

The authority is usually located at the State Labour Department office. Each state has multiple authorities covering different districts. You can find the nearest authority by contacting your State Labour Commissioner office listed on labour.gov.in.

The Code on Social Security, 2020 for the first time brings gig workers and platform workers into a dedicated social security framework. Chapter IX of the Code provides for the constitution of the National Social Security Board for gig workers and platform workers. However, the question of whether the employees compensation provisions in Chapter VII automatically cover gig and platform workers depends on the nature of the engagement:

1. If the platform worker is treated as an employee: The full compensation under Sections 74-82 applies.
2. If the platform worker is treated as an independent contractor: The employer may argue no liability exists, but the authority can examine the actual working relationship (control, supervision, fixed hours) to determine the real status.
3. For unorganised sector workers: Construction workers, beedi workers, and other unorganised sector workers may be covered through state-specific welfare boards and the Building and Other Construction Workers (BOCW) Act provisions that continue in parallel.

The Ministry of Labour and Employment has issued guidelines on gig worker social security available at labour.gov.in. For state-specific construction worker compensation, check your state BOCW welfare board portal.

When the employer contests the claim, the competent authority conducts a formal hearing. The employer may raise the following defences:

After hearing both sides, the authority passes a reasoned order within a reasonable period. Either party can appeal to the High Court within 60 days under Section 91 of the Code.

If your claim is pending before the competent authority and you are not getting updates, you can file an RTI application to get information on the status:

1. File with the State Labour Department: The competent authority is a public authority under the RTI Act. Ask for the current status of your claim application, the date of the next hearing, and reasons for any delay.
2. Ask for the register of claims: Under Section 4(2) of the RTI Act, you can inspect the register of compensation claims maintained by the authority.
3. Check employer insurance compliance: File RTI with the labour department to ask whether the employer has filed the mandatory insurance policy under Section 78 of the Code.
4. Track the deposit and distribution: In a death claim, the compensation must be deposited with the authority. Use RTI to verify whether the amount was deposited and how it was distributed among dependants.

For a ready-to-use RTI template for labour department queries, see Best RTI Questions for Government Departments. For the first appeal process if your RTI is ignored, see How to File First Appeal Under RTI.

Workers often confuse employees compensation with other employment-related payments. Here is a comparison:

A worker can claim employees compensation AND other benefits simultaneously. For example, a worker who suffers a permanent disability can claim compensation under Chapter VII, continue ESI medical treatment, and receive gratuity on termination.

If the competent authority rejects your claim or awards a lower amount than expected, you have the following remedies:

1. Appeal to the High Court: Under Section 91 of the Code, an appeal lies to the High Court within 60 days of the order. The High Court can admit appeals filed beyond 60 days if sufficient cause is shown.
2. Grounds for appeal: Common grounds include errors in wage determination, incorrect application of the relevant factor, misreading of medical evidence, or failure to consider interest and damages for delay.
3. Legal aid: If you cannot afford a lawyer, the Legal Services Authority can provide free legal aid for the appeal. Contact your District Legal Services Authority (DLSA) or see nalsa.gov.in.
4. Writ petition: In exceptional cases where the authority failed to follow natural justice, a writ petition under Article 226 of the Constitution can be filed in the High Court.

The Code on Social Security, 2020 places several duties on the employer:

1. Duty to report: Under Section 74(4), the employer must report any accident causing disablement lasting more than 3 days to the competent authority and the ESI Corporation.
2. Duty to deposit compensation: In case of death, the employer must deposit the compensation amount with the competent authority within 30 days, not pay the dependants directly.
3. Duty to insure: Under Section 78, the employer is required to obtain an insurance policy to cover liability under this chapter. Failure to insure is an offence punishable under Section 99.
4. Duty to pay on time: Section 77 requires payment as soon as the amount falls due. Delay beyond one month attracts interest and damages.
5. Duty to maintain records: The employer must maintain a register of accidents and compensation payments, which can be inspected by the labour department.

Check the full list of state labour departments at labour.gov.in.

1. Report every workplace accident in writing immediately. Verbal reports are hard to prove later.
2. The compensation amount is fixed by law, not by negotiation. Do not accept a private settlement below the statutory formula.
3. You have two years to file. Do not wait until the last month.
4. The competent authority is free, fast, and worker-friendly. You do not need a lawyer to file.
5. If the employer delays, the authority must add interest and may add up to 50% damages.
6. Use RTI to track your pending claim and verify employer insurance compliance.
7. You can claim compensation alongside ESI, gratuity, and other benefits.