law: Workmen's Compensation Act, 1923 
  4. Amount of compensation 
  (1) Subject to the provisions of this Act the amount of
  
  compensation shall be as follows namely :-
  where death results from the injury an amount equal to fifty per
  
  cent of the monthly wages of the deceased workman multiplied by the relevant
  
  factor; or an amount of fifty thousand rupees whichever is more; where
  
  permanent total disablement results from the injury an amount equal to sixty
  
  per cent of the monthly wages of the injured workman multiplied by the relevant
  
  factor; or an amount of sixty thousand rupees whichever is more.
  Explanation I :  For the purpose of clause (a) and clause (b)
  
  relevant factor in relation to a workman means the factor specified in the
  
  second column of Schedule IV against the entry in the fits column of that
  
  Schedule specifying the number of years which are the same as the completed
  
  years of the age of the workman on his birthday immediately preceding the date
  
  on which the compensation fell due;
  Explanation II :  Where the monthly wages of a workman exceed
  
  two thousand rupees his monthly wages for the purposes of clause
  (a) and clause
  (b) shall be deemed to be two thousand rupees only;
  (c) where permanent partial disablement results from the injury
  
  in the case of an injury specified in Part II of Schedule I such percentage of
  
  the compensation which would have been payable in the case of permanent total
  
  disablement as is specified therein as being the percentage of the lass of
  
  earning capacity caused by that injury; and in the case of an injury specified
  
  in Schedule I such percentage of the compensation payable in the case of
  
  permanent total disablement as is proportionate to the loss of earning capacity
  
  (as assessed by the qualified medical practitioner) permanently caused by the
  
  injury;
  Explanation I :  Where more injuries than one are caused by the
  
  same accident the amount of compensation payable under this head shall be
  
  aggregated but not so in any case as to exceed the amount which would have been
  
  payable if permanent total disablement had resulted from the injuries.
  Explanation II :  In assessing the loss of earning capacity for
  
  the purpose of sub-clause
  (ii) the qualified medical practitioner shall have due regard to
  
  the percentages of loss of earning capacity in relation to different injuries
  
  specified in Schedule I;
  (d) where temporary disablement whether total or partial results
  
  from the injury a half monthly payment of the sum equivalent to twenty five per
  
  cent of monthly wages of the workman to be paid in accordance with the
  
  provisions of sub-section (2).
  (1A) Notwithstanding anything contained in sub-section (1) while
  
  fixing the amount of compensation payable to a workman in respect of an
  
  accident occurred outside India the Commissioner shall take into account the
  
  amount of compensation if any awarded to such workman in accordance with the
  
  law of the country in which the accident occurred and shall reduce the amount
  
  fixed by the amount of compensation awarded to the workman in accordance with
  
  the law of that country.
  (2) The half-monthly payment referred to in clause (d) of sub-section
  
  (1) shall be payable on the sixteenth day -
  from the date of disablement where such disablement lasts for a
  
  period of twenty-eight days or more or after the expiry of a waiting period of
  
  three days from the date of disablement where such disablement lasts for a
  
  period of less than twenty-eight days; and thereafter half-monthly during the
  
  disablement or during a period of five years whichever period is shorter :
  Provided  that -
  there shall be deducted from any lump sum or half monthly
  
  payments to which the workman is entitled the amount of any payment or
  
  allowance which the workman has received from the employer by way of
  
  compensation during the period of disablement prior to the receipt of such lump
  
  sum or of the first half monthly payment as the case may be; and no half
  
  monthly payment shall in any case exceed the amount if any by which half the
  
  amount of the monthly wages of the workman before the accident exceeds half the
  
  amount of such wages which he is earning after the accident.
  Explanation :  Any payment or allowance which the workmen has
  
  received from the employer towards his medical treatment shall not be deemed to
  
  be a payment or allowance received by him by way of compensation within the
  
  meaning of clause (a) of the proviso.
  On the ceasing of the disablement before the date on which any
  
  half monthly payment falls due there shall be payable in respect of that half
  
  monthly a sum proportionate to the duration of the disablement in that half
  
  month. If the injury of the workman results in his death the employer shall in
  
  addition to the compensation under sub-section
  (1) deposit with the Commissioner a sum of one thousand rupees
  
  for payment of the same of the eldest surviving dependant of the workman
  
  towards the expenditure of the funeral of such workman or where the workman did
  
  not have a dependant or was not living with his dependant at the time of his
  
  death to the person who actually incurred such expenditure. 4A. Compensation to
  
  be paid when due and penalty for default Compensation under section 4 shall be
  
  paid as soon as it falls due.
  (2) In cases where the employer does not accept the liability
  
  for compensation to the extent claimed he shall be bound to make provisional
  
  payment based on the extent of liability which he accepts and such payment
  
  shall be deposited with the Commissioner or made to the workman as the case may
  
  be without prejudice to the right of the workman to make any further claim.
  direct that the employer shall in addition to the amount of the
  
  arrears pay simple interest thereon at the rate of twelve per cent annum or at
  
  such higher rate not exceeding the maximum of the lending rates of any
  
  scheduled bank as may be specified by the Central Government by notification in
  
  the Official Gazette on the amount due; and if in his opinion there is no
  
  jurisdiction for the delay direct that the employer shall in addition to the
  
  amount of the arrears and interest thereon pay a further sum not exceeding
  
  fifty per cent of such amount by way of penalty :
  Provided  that an order for the payment of penalty shall
  
  not be passed under clause (b) without giving a reasonable opportunity to the
  
  employer to shoe cause why it should not be passed.
  Explanation :  For the purposes of this sub-section
  
  "scheduled bank" means a bank for the time being included in the
  
  Second Schedule to the Reserve Bank of India Act 1934 (2 of 1934
  (3A) The interest payable under sub-section (3) shall be paid to
  
  the workman or his dependant as the case may be and the penalty shall be
  
  credited to the State Government.
  Method of calculating wages In this Act and for the purpose
  
  thereof the expression "monthly wages" means the amount of wages
  
  deemed to be payable for a months' service (whether the wages are payable by
  
  the month or by whatever other period or at piece rates) and calculated as
  
  follows namely :-
  where the workman has during a continuous period of not less
  
  than twelve months immediately preceding the accident been in the service of
  
  the employer who is liable to pay compensation the monthly wages of the workman
  
  shall be one-twelfth of the total wages which have fallen due for payment to
  
  him by the employer in the last twelve months of that period; where the whole
  
  of the continuous period of service immediately preceding the accident during
  
  which the workman was in the service of the employer who is liable to pay the
  
  compensation was less than one month the monthly wages of the workman shall be
  
  the average monthly amount which during the twelve months immediately preceding
  
  the accident was being earned by a workman employed on the same work by the
  
  same employer or if there was no workman so employed by a workman employed on
  
  similar work in the same locality; in other cases including cases in which it
  
  is not possible for want of necessary information to calculate the monthly
  
  wages under clause (b) the monthly wages shall be thirty times the total wages
  
  earned in respect of the last continuous period of service immediately
  
  preceding the accident from the employer who is liable to pay compensation
  
  divided by the number of days comprising such period.
  Explanation :  A period of service shall for the purposes of
  
  this section be deemed to be continuous which has not been interrupted by a
  
  period of absence from work exceeding fourteen days.